Unified Communications as a Service (UCaaS)
Transforming Business Communications
While only 20 percent of businesses used cloud-based telephony last year, by 2027 analyst firm Gartner predicts that 80 percent of businesses will host their telephony systems in the cloud.1 That’s a 400-percent increase in just four years.Read this article for key insights that include:
Unified Communications as a Service (UCaaS)
Transforming Business Communications
While only 20 percent of businesses used cloud-based telephony last year, by 2027 analyst firm Gartner predicts that 80 percent of businesses will host their telephony systems in the cloud.1 That’s a 400-percent increase in just four years.Read this article for key insights that include:
The New Trend in Communications
Over the next several years, businesses are expected to migrate their traditional telephony services into the cloud. Actually, migrate may be too mild a word. Stampede is more like it. Why the mass movement to the cloud? There are several reasons, with cost perhaps the most compelling. Legacy PBX-based phones systems are expensive to operate and maintain. In the past, businesses were willing to pay that price in return for high quality and reliability. Today’s cloud-based telephony systems now offer the same or better quality and reliability at a fraction of the cost.Another reason for the migration to the cloud is the plethora of productivity enhancements that await in the cloud through Unified Communications (UC). Standalone phone systems made sense when voice calls were the primary mode of communication and collaboration. That’s not the case anymore. Voice calls are just one tool in an ever-expanding array of communications that includes instant messaging/text, chatbots, collaboration apps, videoconferencing, and email. Employees don’t want to toggle through multiple apps and screens to manage their communications; they want a single communications portal with multiple options for collaboration—which is exactly what UC solutions promise to deliver.
The New Trend in Communications
Over the next several years, businesses are expected to migrate their traditional telephony services into the cloud. Actually, migrate may be too mild a word. Stampede is more like it. Why the mass movement to the cloud? There are several reasons, with cost perhaps the most compelling. Legacy PBX-based phones systems are expensive to operate and maintain. In the past, businesses were willing to pay that price in return for high quality and reliability. Today’s cloud-based telephony systems now offer the same or better quality and reliability at a fraction of the cost.Another reason for the migration to the cloud is the plethora of productivity enhancements that await in the cloud through Unified Communications (UC). Standalone phone systems made sense when voice calls were the primary mode of communication and collaboration. That’s not the case anymore. Voice calls are just one tool in an ever-expanding array of communications that includes instant messaging/text, chatbots, collaboration apps, videoconferencing, and email. Employees don’t want to toggle through multiple apps and screens to manage their communications; they want a single communications portal with multiple options for collaboration—which is exactly what UC solutions promise to deliver.
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Bringing UC into the Cloud
For this reason, businesses are both excited about the opportunities of UCaaS and nervous about trading in the quality and reliability of their legacy voice systems for less-than-stellar service. Since opportunity and risk are two sides of the same coin, let’s look first at the opportunities that UCaaS presents for businesses.
UCaaS Promises
Lower Costs
Telephony has traditionally been a high-ticket item for businesses. There are the costs associated with the dedicated PBX, software licensing fees, dedicated circuits and long-distance fees from a service provider, and the operational costs to manage these legacy on-premises systems and make changes as new employees are added or deleted. Moving business communications into the cloud consolidates these costs into a monthly subscription fee, which can reduce costs by up to 30 percent.* And, because the UCaaS hosting provider has already invested in the infrastructure, there’s no up-front cost associated with UCaaS services; businesses can start using all of the hosting provider’s telephony features from day one.Higher Productivity
It stands to reason that having all your communications tools in one application would make you more productive, but how much of an improvement could you reasonably expect from UCaaS? According to Forrester Research, businesses that use UCaaS are able to make decisions 2.6X faster than companies that don’t have UCaaS.2 This faster decision-making has a ripple effect of benefits across the business, from higher customer satisfaction to improved operational agility.Support for Remote Workforces
Before 2019, remote workers were a rising trend. Then COVID happened, and that trend became a tsunami. Businesses recognize that remote work is here to stay and that workers need secure access to business tools and applications in a variety of places and on a variety of devices. UCaaS solutions support secure anywhere-access to critical collaboration and communications applications so that teams can stay connected even when they’re spread across the globe. As an added advantage, UCaaS also allows businesses to recruit from a much wider pool of talent.Improved Security and Disaster Recovery
The cloud architecture is inherently scalable and redundant. Unlike PBX-based telephony systems, there is no single point of failure. If a node in the cloud fails, another is there to take its place. Cloud-based telephony services are thus available to deliver five nines (99.999%) or better of reliability while also making it easy to businesses to add or remove users quickly. Cloud-based systems are also better equipped to handle security risks such as telephony denial-of-service attacks.Artificial Intelligence and Other New Features
Businesses are understandably excited about the potential of artificial intelligence to enhance business communications through virtual assistants, automatic tagging of issues/queries, real-time recommendations, and more. In fact, Gartner predicts that 80 percent of customer service and support organizations will be using generative AI to improve their operations by 2025.3 The benefits of AI-enhanced UCaaS are simply too compelling to ignore, from creating emails and text messages to generating summaries of phone and video meetings that can be queried to identify and prioritize action items.Businesses that use UCaaS are able to make decisions 2.6X faster than companies that don't have UCaaS.2
UCaaS Challenges
It's not enough to transfer telephony and collaboration to the cloud. It needs to be a smooth transition because businesses can’t afford disruption where communications are concerned. At Connection, we can help you choose the right UC solution at the right price from the industry’s leading providers including Fusion Connect, RingCentral, Vonage, Zoom, and more. We can also help you integrate Teams and other applications with your UC solution to help you get more value from your existing investments. And we offer managed services and consulting to ensure that your cloud services continue to meet your business needs.
Your Path to Higher Productivity and Smarter Collaboration Starts Here
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1 Gartner, 2024, Magic Quadrant for Unified Communications as a Service.
2 Forrester Consulting, 2021, Agility and Efficiency: Keys to Future-Proof Communications Technology. January 2021
3 Gartner, 2023, Gartner reveals three technologies that will transform customer service and support by 2028.