Seizing opportunities in the Voice and Collaboration landscape

The Unified Communications as a Service (UCaaS), Contact Centre as a Service (CCaaS), and collaboration tools market is rapidly evolving, presenting significant opportunities for service providers. As businesses continue transitioning from legacy systems to cloud-based solutions, there is a clear path for providers to capitalise on next-generation services and unlock new revenue streams. However, success in this competitive landscape requires a strategic approach –  market segmentation, addressing business challenges, and leveraging emerging technologies. 

What does the market look like? 

The UK business communication market has significant untapped potential. As of Q2 2024, nearly 20 million business telephony users existed, but only about 50% were using cloud-based solutions. This leaves a large segment still dependent on traditional on-premises PBX systems, presenting a prime opportunity for digital transformation. 

 With the combined UCaaS and CCaaS market in the UK forecast to exceed £2.3 billion in revenue annually by 2028 it’s important for service providers to understand the unique needs and challenges of each segment to maximise market reach. 

What communication challenges do businesses face? 

The right UCaaS and CCaaS solutions must be tailored to the unique communication needs and challenges of different business segments. 

1. Small and Medium-sized Businesses (SMBs) 
Agility and Affordability 

SMBs (typically fewer than 50 employees), often struggle with limited IT resources and budget constraints. Key priorities include a need for simplicity, ease of integration, and cost-effective scalability. UCaaS solutions for SMBs should offer the flexibility to grow without requiring significant upfront investment in infrastructure. According to Cavell research, the SMB segment is expected to grow at a rate of 10.3% in 2024, adding over 350,000 new users. 

2. Mid-Market Enterprises  
Scalability and Security 

Mid-market Enterprises (50 to 250 employees) require more robust communication solutions that can scale with their growth. Security, compliance, and seamless integration with existing systems are top priorities. Providers that offer additional features, such as AI-driven call analytics and automation, will gain a competitive edge. The mid-market sector is forecast to have experienced the largest annual growth (23%) in 2024. 

3. Large Corporations  
Customisation and Advanced Analytics 

Enterprises with over 250 employees demand high levels of reliability, security, and integration capabilities. These organisations often operate complex IT environments and require highly customisable solutions that provide deep analytics to drive strategic decision-making. The large corporate segment is expected to have added more than 800,000 new users by the end of 2024. 

How can you maximise market reach? 

The short answer – vertical specialisation. 

Service providers can enhance their market reach by tailoring offerings to specific industries. Sectors such as healthcare, finance, education, and retail have distinct communication needs that cloud-based solutions can address.  

As providers shift from traditional revenue streams toward next-generation services, differentiation becomes critical. Cavell research indicates a decline in Average Revenue Per User (ARPU) in mature markets like the UK, with ARPU dropping from £12.08 in 2023 to a projected £11 by 2028. This underscores the need for providers to diversify their service portfolios to maintain profitability. 

Can AI make a difference to next-generation communication solutions? 

Companies are actively seeking AI-driven enhancements to improve efficiency and automation, and leading providers such as Zoom and Microsoft continue to improve on the AI capabilities of their platforms. 

• Microsoft Copilot, available as an add-on for Microsoft 365 at around £25 per user per month, enhances collaboration with AI-powered summaries and automation. 

• Zoom AI Companion, included at no additional cost for paid Zoom users, offers features such as voicemail summarisation, automated call transcripts, and action-item generation, reducing manual effort and improving productivity. 

Cavell’s research suggests that businesses are looking for AI-driven solutions that seamlessly integrate into their workflows. Providers evaluating technology vendors should consider both AI capabilities and commercial factors, as these could be key drivers for customer adoption. 

Winning in the UCaaS and CCaaS Market 

The opportunity in UCaaS, CCaaS, and collaboration tools is vast, but success depends on adopting a targeted approach. By segmenting the market effectively, addressing the specific needs of different business sizes, and incorporating AI-driven innovations, service providers can unlock new revenue streams and gain a competitive advantage. 

Providers that offer integrated, market-leading solutions from vendors such as Zoom, available via PXC, will be well-positioned to meet the evolving demands of businesses and stay competitive in the digital communications landscape. 

To learn more about opportunities in the UK voice market download our whitepaper or speak to your Account Manager today to find out more.