CPaaS at Core of Digital Services Development and Innovation

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May 06, 2016

By Laura Stotler
TMCnet Contributing Editor

The communications platform as a service (CPaaS) market has been undergoing a transformation over the past few years and is now fueling development of a broad range of valuable digital services. CPaaS innovators like Twilio, Dialogic (News - Alert) and Nexmo are all working to facilitate quick and easy creation of functions like SMS, video conferencing and other business communication services.

The market heated up yesterday with the announcement that telephony and cloud communications stalwart Vonage (News - Alert) will acquire Nexmo in a $230 million cash and stock deal. The move will strengthen Vonage’s position in the cloud while facilitating easy creation of contextual communication functions in mobile apps, social media, voice services and more.

IDC (News - Alert) forecasts the global CPaaS market will reach $8 billion by 2018, fueled by an increased demand for digital services that may be developed and deployed quickly and efficiently. That growth figure is in line with recent data from ZK Research showing that digital organizations are 26 percent more profitable than companies that don’t embrace digital services. The company also found that 65 percent of workers are slated to use a mobile device first for business purposes by 2019, further fueling the need and demand for digital communication services.

A prime example of CPaaS being used to roll out digital services in the transportation sector is Penta’s recent partnership with Dialogic. The company, which specializes in providing voice and data control solutions specifically geared toward the transportation industry, is using Dialogic’s PowerMedia software-based media service solution to power its communication systems for the light and heavy rail market. Penta is rolling out two-way communications, conferencing, data transmission, remote equipment management and a host of digital services using Dialogic’s solution.

“Dialogic’s PowerMedia technology provides us the rock-solid platform for building our high-reliability dispatch system that transit systems demand, including a recent installation at a major commuter rail line in the Northeast,” said Herb Forster, general manager of Penta Communications. “Our solutions allow rail systems to effectively manage dispatcher to radio, telephone, emergency lines, passenger communications, and today’s cellular technologies with leading edge IP and server based technology. With this solution from Dialogic, we have a platform that will take us into the future.”

CPaaS has the potential to transform a number of vertical markets as developers and innovators come up with a host of new digital services. Having the ability to develop and quickly go to market with new solutions will be a significant competitive differentiator, and CPaaS is an important tool for any company focused on digital services.

Edited by Maurice Nagle

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