Cloud Communications Market on a Strong Growth Path
July 11, 2014
The world of communications has expanded to include just about anything and everything you could possibly need to stay connected with your customers, colleagues and partners throughout the world. International calling that breaks the budget is a thing of the past, integrated applications and networks support seamless video conferencing and companies throughout the world are leveraging available bandwidth in cloud communications to transfer voice, data and video.
This trend for growth is due to the proven benefits that cloud communications delivers in the corporate environment, regardless of the size of the organization. According to a new study by Allied Market Research, the trend will only continue as global cloud services as a market are expected to grow at a CAGR of 17.6 percent from 2014 to 2020. The resulting market will reach $555 billion in 2020 if these projections hold true.
Public cloud services led the overall cloud services market revenue in 2014, a market that is expected to reach $209.9 billion. Momentum (News - Alert) is also obvious in the community cloud services segment, an area expected to hit $1 billion this year thanks to the growing adoption in the healthcare space.
The recent economic slowdown was good news for cloud communications as this segment surged. Companies seeking strategies to reduce their burden turned to cloud options, helping to produce as much as 35 percent in savings in IT costs. The zero investment needed to invest in cloud communications has certainly driven the migration, although companies are also drawn to the value these solutions create.
A number of organizations are now making the cloud an important element of their overall IT portfolio. Still, data security issues have kept a number of organizations away as sensitive material is a key focus for revenue generation and cloud services still represent an unknown and seemingly insecure environment for some.
Companies seeking a reduction in the total cost of ownership on deployment of cloud communications are doing their due diligence in researching risks and solutions so as to overcome trepidation about security vulnerabilities. The public cloud market continues to attract new providers seeking to capitalize on opportunities due to liberal government regulations. Private clouds, however, are expected to have the fastest growth during the analysis period as both hybrid and community cloud services gain momentum.
will still dominate, however, as those organizations still on the fence are looking for proven solutions to support their communications efforts. Providers like CoreDial are gaining more attention for that reason alone, delivering cloud communications with the features, support and quality performance companies need to effectively compete.