Cloud telephony services are internet-enabled voice infrastructures and data communications where a third party host several applications such as storage, telecommunications and switching and are further accessed over the internet channels. These parties perform operations on public switched telephone networks (PSTNs)VoIP phone systems (Voice over Internet Protocol) which can operate without a physical connection to a network provider since they perform functions in a virtual mode. Moreover, the increasing penetration of mobile phones across the globe is a major reason for the growth of global cloud telephony market.
Insight by Organization Size
On the basis of organization size, the cloud telephony service market is categorized into large and small and medium enterprises. Among these segments, small and medium enterprises are anticipated to witness the fastest growth during the forecast period since it enables simple operations of business. Cloud telephony services provide a great value of money to these enterprises by promoting efficient and effective communication within the organization or on mobile devices and enables lower subscription cost. Additionally, increasing popularity of cloud telephony service in small and medium enterprises is thus bolstering the growth of cloud telephony service market globally.
Insight by Deployment Type
On the basis of deployment type, the cloud telephony service market is segmented into the cloud and hosted. Of both the categories, cloud deployment is generating and expected to generate larger revenue throughout the estimated period. With the introduction of cloud computing and storage spaces, it enables the business enterprises to develop reliability in their business operations and develop secure and efficient functioning of the business organization.
Insight by End User
On the basis of the end user, the cloud telephony market is categorized into media & entertainment, telecom & IT, health care, BFSI, government, retail, education, and others. Among these segments, telecom & IT segment is anticipated to witness the fastest growth during the forecast period. The demand for cloud telephony service is high in this domain since companies are shifting their focus from conventional communication techniques to cloud telephony services since it offers improved voice moderations.
Furthermore, companies are utilizing this network in order to improve the performance of mail, media, social, voice and chat that is further strengthening the growth of cloud telephony service market across the globe.
Migration of telecom companies from traditional to IP networks, increasing accessibility to electricity in developing countries, cost-effective alternative to traditional telephony services including PSTN and ISDN are the key factors attributing towards the growth of global cloud telephony service market. Furthermore, migration of telecom companies from traditional to IP networks has made it brought a push to the virtual telecom or cloud telephony services. This technology is more economical than the traditional telephony systems and thus, is getting adopted by major business operators across the globe.
Lack of knowledge pertaining to cloud telephony service technology and less adaptation of this technology for all kinds of business models are the challenges faced by cloud telephony service players. Furthermore, this technology requires enhanced visibility and accessibility through proper marketing channels that makes cloud telephony service expensive and less attractive option.
Globally industry players are leveraging market growth through the development of innovative solutions in cloud telephony service market across the globe. The vendors for the technology are providing various solutions to users such as advanced technology for better and quick connectivity. Additionally, several R&D activities are done to improve security and make it more efficient and accessible across the globe.
Geographically, North America is the largest cloud telephony service market due to increasing advancements made by the key players in the aspect of internet of things compared to other technologies. The increasing utilization of cloud computing technology and growing telecom domain are other factors contributing towards the growth of the cloud telephony service market in the region.
Furthermore, cloud telephony service market in the Asia-Pacific is anticipated to witness the fastest growth due to increasing adoption of the technology and increasing accessibility to electricity. Furthermore, due to technological advancement in the cloud telephony services in countries such as India, this has made it accessible to SEBI and has further enhanced the growth of the cloud telephony service market.
Key players in the cloud telephony market are launching new products in order to earn major revenue from early adopters of the adoption cycle that is further improving the quality of their offerings and to gain competitive advantage. Also, it has been observed that key players in the cloud telephony service market are depending upon new technology to develop cost efficiencies, thereby increasing the rivalry in the market to some extent.
Some of the key players in the cloud telephony market are Microsoft Corporation, Cisco Systems, Tele Logic,8×8, Inc., BroadSoft, Inc., Exotel Techcom Pvt. Ltd., DIALPAD, Knowlarity Communications Pvt Ltd., Go 2 Market India Pvt. Ltd., and Mitel Networks Corporation.