Cloud telephony set to reach US$ 52.3 Billion by 2026

In April 2019, we wrote that cloud telephony services market revenue was set to reach US$ 42 Billion by 2026. In fact, recent figures from a Research and Markets report reveal that the global telecom cloud market size is expected to grow to a staggering US$ 52.3 Billion by 2026, at a Compound Annual Growth Rate (CAGR) of 21.4% during the forecast period.

The increase in the adoption of of cloud technologies, cloud awareness, and the reduction in cost have led companies to enter the cloud environment. This has all contributed to the increased growth projection. 


Soaring growth of cloud telephony

The reports highlights that the management service segment is expected to grow at a higher CAGR. This has to do with telecom cloud solution vendors enabling organizations to centralize, manage, and deliver information in a secure way. Data is increasingly seen as a corporate asset used to make more informed decisions, improved marketing campaigns, optimized operations, and reduced costs, all with the goal of increasing revenues and profits. 


Banking, financial services and insurance expected to have a larger market size 

The banking, financial services and insurance vertical deals with the need to reduce non-core functions and has started outsourcing them. Outsourcing helps banks minimize costs and maximize efficiency. This results in the requirement for channelized content insights and accurate banking information that can be consolidated through a telecom cloud solution.

The collaborations enable banking and financial service providers to offer enhanced facilities by providing them with improved communication options. The solution enables face-to-face interactions between customer and employees from anywhere in the world.

Telecom cloud technology facilitates an enhanced customer experience. Growth opportunities can be attributed to the increasing requirement for telecom cloud to enhance staff training, banking education, and customer communication.


APAC to account for the largest growth 

The report notes that APAC (Asia-Pacific) is estimated to hold the highest CAGR during the forecast period. The region is transforming dynamically with respect to the adoption of new technologies across various sectors. The infrastructural growth in Japan, South Korea, Australia, Singapore, China, and India, and the increasing deployment of 5G networks present huge opportunities for the implementation of the telecom cloud.

The reliance on technologies such as cloud computing, AI, and IoT, is increasing in the region to effectively operate connected devices in hospitals, medical facilities, and other healthcare organizations. To maintain business continuity, organizations are adopting the remote working approach for their employees. As a result, there is a significant demand for telecom cloud solutions across industries in the APAC region.


Challenges when migrating to the cloud 

In a recent blog, “Moving to the cloud – Call centre tech migrations” we acknowledged that people still have concerns with the cloud. Despite the fact that many companies have either already migrated to the cloud, or are considering doing so, many still have their doubts about reliability.

  • The transition is not for the faint-hearted. Project teams are required to take great care to ensure the quality of services is enhanced, and not impacted by technology issues.
  • Poor audio quality threatens customer satisfaction. It impacts revenue and tarnishes brand image. But the biggest risk is not having full visibility when these issues occur.
  • Portability can be an issue, particularly when every cloud provider has a different set of products and services to offer.  Issues can arise when the cloud is enabled in PaaS (platform as a service). When an organization uses the PaaS, they are not aware of the physical properties that are used in their usage which acts as a hinderance.
  • The smooth functioning of cloud telephony relies on successful SIP trunk calls, which, in turn, rely on the interoperability between on-premises and localised devices, telecoms carriers and the cloud-based solution itself.
  • Data security is a major factor, as organizations weigh up concerns about cyber attacks. What’s more, the risk of data loss can occur when the data is unintentionally deleted thinking it would be saved somewhere else or when the system gets corrupted. 


Testing to avoid problems with migrations

Despite the challenges, the benefits of moving to the cloud do outweigh the concerns. Some of the world’s leading organizations have come to Spearline because they are in the process of, or have already have, migrated to the cloud. These organizations want to ensure that there are no adverse knock-on effects for their customers.

Testing pre-migration to measure a baseline of connectivity and audio quality, and then post-migration to uncover any changes, provides an objective view of your customer’s experience throughout.

Testing in this way can also provide valuable troubleshooting information to help pinpoint any issues and fix them quickly – ensuring your migration to the cloud goes smoothly.


Find out more

If you are an existing Spearline customer and would like to talk to us about your cloud migration needs, please do not hesitate to get in contact with your Customer Engagement Manager. Alternatively, if you are new to Spearline, please get in touch with us we would love to hear from you.

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About Spearline 

Spearline is a technology company that proactively tests toll, toll-free and premium-rate numbers for audio quality and connectivity globally. We support business sectors, such as contact centers, conferencing services, and other applications, in successfully connecting with their customers. 

For more information about the Research and Markets report in to the cloud telephony market, please visit  https://www.researchandmarkets.com/r/zbgp6s

 

Other sources:
Business Wire
Markets and Markets

Customer Contact Central

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