There is no doubt about it; we are moving towards a digital world. As the world begins to use Communication Platform-as-a-Service, the industry is seeing growth in the market. In 2020, the CPaaS market was worth a mindblowing USD 4.54 billion. But, what is CPaaS? And why is it necessary for working in the 21st Century?
What is CPaaS?
CPaaS stands for Communications Platform as a Service. These are cloud-based services that help developers add communications features to their applications. The advantage is that users do not have to waste time on building backend infrastructure. Therefore, you can have software tools and pre-built applications with just the click of a button.
What are the benefits of using CPaaS?
The most obvious benefit is that it makes processes more efficient. Companies can cut the cost of human resources and infrastructure. Furthermore, it makes products more affordable. Consumers do not have to pay for the complete package. Instead, they can pick and choose the services they need. That is not all. With CPaaS, multiple customers can use the assistance simultaneously. It also makes it easier to get personal service with video-enabled help desks. CPaaS technology is the key to digital transformation.
Some CPaaS statistics:
Undoubtedly, CPaaS is the future for all industries. There has been much research on this subject. And, these cpaas stats help us identify the market trends. According to IDC, the value of the CPaaS market will increase by five times by 2022. Furthermore, CPaasS can also improve the profit margins of businesses. According to Gartner, Nexmo was able to generate business worth $215 million in 2018. They did so by introducing CPaaS technology.
CPaaS in the time of COVID-19:
The pandemic has helped us realize the necessity of going digital. Therefore, the implementation of CPaaS has changed in the past two years. For example, health care users prefer telemedicine. According to one report, 97 percent of healthcare professionals say that they are using CPaaS to diversify telehealth access. As the third wave of COVID-19 turns deadlier than the earlier ones, people working from their homes will continue to prefer API. One study found that consumers are also changing. According to Mordor Intelligence, Chinese consumers would rather use video chat to communicate with service providers instead of physically interacting. These figures are from 2018, so experts predict an increase in the use of cloud-based unified communications.
Some CPaaS trends in 2021:
The world has changed a lot in the past few years. As mentioned previously, the pandemic has made cloud-based technology more popular amongst users. Therefore, experts believe we are entering the era of CPaaS. Some trends will emerge in the next few months.
- More companies will use CPaaS: Businesses are mulling over a long-term shift to more remote work. The way the world connects and interacts has evolved. Different organizations use APIs to facilitate their daily tasks. From contactless consultations to driverless deliveries. CPaaS will also simplify the infrastructure. Companies have seen the light, and there is no going back. They will redouble their efforts to adopt APIs.
- Code-less CPaaS: Previously, companies had to have technical skills to integrate CPaaS technology. However, that is no longer true. Low-code and code-less platforms have simplified the process. People with no prior training can excite organizational tasks with this technology. For example, Two-Way SMS API makes the process of managing customer experience easy. The owners no longer have to worry about coding and functionality. Luckily, CPaaS service providers take care of all of this mess. So, owners can focus on other matters. Organizations can make do without development teams and cut costs. This trend will make APIs even more popular in the future.
- More variety: As the market for APIs grows, more companies will offer CPaaS technology. In 2021, there will be much variety in the sector. Consequently, vendors will make it impossible for existing customers to shift to these services. Experts suggest that vendors will increase customer dependence and make customers reluctant to switch to different vendors. The transitioning procedure, including swapping and integration, will become more complicated. Therefore, there will be stricter penalties for breaking contracts and high costs.
- AI and Machine Learning integration: Both AI and machine learning have long been a favorite of consumers. However, 2021 will see an unprecedented increase in AI innovation. Users will take advantage of Chatbots. But, these Chatbots will become even more sophisticated. They will take care of administrative tasks and facilitate queries. That is not all. Businesses will have access to accurate data on the utility of CPaaS. The information will assist them in improving customer engagement across several platforms. They will also be able to resolve problems quickly and identify the fundamental issues with their services.
- More telehealth opportunities: Before COVID-19, telehealth technology was a way to get in touch with remote patients. It helped medical professionals function in rural communities and target at-risk populations. However, the application of telehealth has increased in the past year. Distance patient care and virtual hospitals are going to become the norm with the help of CPaaS. As these services require reliable API applications, CPaaS solutions will increase in popularity. Several medical facilities are already using CPaaS to schedule appointments and collect bills.
- A renewed focus on video: Before the pandemic hit, not many people had heard of Zoom. But, within a year, Zoom was hosting 300 million daily meetings across the world. Although pre-pandemic, most CPaaS did have video capabilities, they could not host larger groups. There will be a renewed interest in video communications. Service providers will strive to improve video integration and focus on interactive use.
CPaaS is here to stay:
While the push to digital services was in reaction to COVID-19, the trend is here to stay. Companies are encouraging their employees to work from home. For example, in July of last year, Japan’s Fuji decided to halve its office space. The company went through a complete overhaul to adjust to the “new normal.” Another company, LivePerson, went the extra mile and gave up on physical offices altogether. Why? According to feedback, their employees preferred a complete WFH model. Their research suggested that not only is a WFH model cheaper, but it is also more efficient. So they chose to move to distance work.
CPaaS has revolutionized how we work. It has improved employee collaboration and enhanced external communication systems. Companies are interested in using this technology to automate actions and make the modern workplace efficient and secure. Furthermore, CPaaS is a modern-day necessity. The landscape of the CPaaS market is ever-changing. Recent trends such as AI, 5G, and IoT have only made the sector more innovative.