Public cloud leads UCaaS market, private cloud growing faster

Public cloud deployments are still more than half of all Unified Communications as a Service (UCaaS) deployments but the private sector, with 51 percent growth in the last four quarters, is expanding faster, according to data compiled by Synergy Research Group (SRG).

According to its third quarter data, public cloud accounts for 56 percent of all UCaaS business suite subscribers, but only 50 percent of quarterly revenues. Combined, public and private cloud subscriber numbers are growing at a 30 percent annual rate. North America accounts for at least 87 percent of UCaaS subscribers.

Five operators, led by 8x8, Inc. (Nasdaq: EGHT) with a 14 percent market share, control over half of uCaaS service revenues, the researchers said. Other top five companies are ShoreTel, RingCentral, Mitel and Vocalocity.

Synergy Research UCaaS growth 2013

"We continue to see UCaaS solutions competing ever more effectively with premise-based UC product offerings and getting more traction in the market, especially with small businesses," SRG founder and chief analyst Jeremy Duke said in a press release. "And looking to the broader cloud UC market we still see vibrant demand for standalone UC SaaS offerings, where revenues continue to growth at double digit rates."

For more:
- Synergy Research Group issued this press release

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