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07 Nov 2017

IDC Discusses Gloomy Sentiment Behind the Growing EMEA UCaaS Market

The EMEA market for unified communications as a service (UCaaS) will expand at a compound annual growth rate (CAGR) of 27.4% during the 2017–2021 period, says the recently published EMEA Unified Communications-as-a-Service 2017–2021 Forecast from International Data Corporation (IDC). The forecast distinguishes two components in this market: applications and voice services. A large majority of UCaaS subscriptions in EMEA over the forecast period will be "applications only", but voice services will retain a decent market revenue share, thanks to the much higher average revenue per user. Both applications and voice are expected to grow by double-digit CAGRs between now and 2021.

Despite the good news, relatively few cheers are being heard from the market. This begs the question: Is growth in UCaaS a good message for players? “Only in so far as UCaaS is their sole line of business, which is rarely the case,” says IDC's Telecom and Networking Program Manager Michael Vorisek. “Most players are either equipment and software vendors who are using UCaaS to offset declining revenues from on-premises deployments, or they are communication services providers (CSPs) who need UCaaS to compensate for plummeting revenues from business fixed voice services. And to be honest, few have been terribly successful in executing this strategy.”

Yet, IDC insists that market players must continue looking for opportunities around UCaaS and in the broader unified communications and collaboration ecosystem if they want to defend and grow their market share. The latest example of such strategic thinking is the acquisition by Cisco of one of the key vendors of infrastructure for providing UCaaS services, Broadsoft.

IDC's EMEA Unified Communications-as-a-Service 2017–2021 Forecast examines key market drivers and inhibitors and provides guidance for vendors and services providers in further planning their UCaaS strategy. The study includes revenue and subscriber forecasts for the EMEA UCaaS applications and UCaaS voice segments, and is split for eight countries/sub-regions: the United Kingdom, Germany, France, the Nordic countries, Southern Europe, the Rest of Western Europe, the Middle East and Africa, and Central and Eastern Europe.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC.

About IDC’s Coverage of Enterprise Communications and Collaboration in EMEA

IDC covers the rich and varied landscape of enterprise communications in Europe, the Middle East, and Africa in its EMEA Enterprise Communications and Collaboration service. The service provides information about business fixed data and voice services, conferencing services, and unified communications and collaboration equipment and services. It not only provides market share, forecasting, and market analysis, but also focuses on actionable, strategic advice to vendors, service providers, and systems integrators in this dynamic market that is currently being shaped by cloud, competitive and margin pressures, and new and innovative competitors.

Coverage

Contact

For more information, contact:

Michael Vorisek
mvorisek@idc.com
+420 221 423 210