CPaaS, otherwise known as Communications Platform as a Service – is a cloud-based and programmable multichannel communications platform. What does it enable developers and organizations to do? For starters: these individuals can customize and build on existing applications and software using the turnkey communications solution. 

Voice calls, SMS messaging, video conferencing, APIs, analytics, management capabilities, customer management, etc., are the respective backbones of CPaaS. CPaaS also usually enables app functionalities like authentication/verification, call recording, transcription, caller identification tools, speech recognition, and more.

The biggest perk of CPaaS is that it makes the jobs of developers, employees, and even the customer experience better. Essentially, developers can beef up their stacks without reinventing the wheel with backend infrastructure or expensive hardware. There is a lot more for you to learn about the state of CPaaS – so you will want to read until the end. 


CPaaS Technology is Ubiquitous 

Talk about ubiquity! CPaaS technology seems to be everywhere and set to exceed $10 billion in revenue in 2022, according to a 2021 CPaaS Future Market Outlook published by Juniper Research. That figure, having risen from $8.6 billion in 2021, saw considerable growth – a hefty 17% year-on-year growth at that.  


CPaaS, Still a Unique Diver of Digital Transformation (DX) 

Digital transformation is a process that all organizations will have to face. If they did not adapt well during the Coronavirus Pandemic, they are likely obsolete today. 

Many companies were quick to embrace the idea of welcoming the digital age with business communications technologies that enabled – most importantly – efficient/productive home working for millions who now work from home.  

  • SAP Digital Interconnect noted in a recent report that email remains the preferred messaging channel that consumers use to interact with service providers, followed by SMS and voice.
  • Omnichannel is important (Market Watch).
  • More than 92% of companies have digital transformation strategies they hope will enhance customer experiences (CX)

  • 44% of companies have already started a digital-first approach to operations and customer engagement. (ClickZ).
  • 94% of those surveyed say they are in the process of finalizing a digital transformation strategy. Seventy-one percent of survey respondents noted: they plan to deploy more digital engagement tools in the next two to three years (UC Today).
  • 89% of executives believe that digitization will disrupt their business over the next year (IMS Guide).
  • 67% of enterprises leaders expect CPaaS to impact organizations within the coming three to five years (Digitalist).


CPaaS Fosters Creativity & Innovation

Workplace agility is one of the most sizable outliers that stems from the Coronavirus Pandemic. Employees demand it far more, and many folks require a job to offer remote work before even considering it. As you may have guessed, CPaaS again is a sizable enabler of this and much more.

That means things like connected devices and device management. CPaaS and BYOD (or bring your (own) device) also go hand in hand. 

  • Connected devices are CPaaS opportunities drivers, with more than 75 billion connected devices set to (be) in use by 2025 (ALE).
BYOD Bitglass 2020 Personal Device Report

Source: Bitglass BYOD Personal Device Report 2020


CPaaS Fundamentally Transformed UCC During Covid-19

To use the word reshape is a vast understatement. CPaaS not only reshaped, but it also enabled much of what went on during the Coronavirus Pandemic. 

Things like physicians who could continue seeing patients safely via telemedicine offerings – possible because of CPaaS. Network infrastructure strength, a faster time to market, and data security are other chief benefits of the delivery model which further extends flexible payment options. 

  • CPaaS grew by 33% year-over-year because of COVID-19 (Capacity Media).
  • COVID-19 caused Vonage in APAC to record the highest increase in Vonage Video minutes in April over March 2020. 
  • 66% of businesses acknowledge the pandemic exposed weaknesses in their digital strategies (Soprano Design).
  • 84% of virtual healthcare users were first-time UCaaS users during the pandemic and said they were (highly) satisfied (No Jitter).
  • 42% of US adults confirmed – they want to meet via telehealth solutions during the COVID-19 (SimForm).
  • 61% of doctors say telehealth solutions are a promising platform to deliver healthcare services (Healthcare IT News).


Leaders in the CPaaS Space 

With the exponential growth of CPaaS, leaders in the space have set themselves apart from the pack. Twilio and Vonage are among the most notable leaders in CPaaS. 

  • By 2025, 95% of global enterprises will leverage API-enabled CPaaS offerings as a strategic IT skill set to enhance their digital competitiveness. That figure – up from 20% in 2020, according to Gartner’s Competitive landscape report on the CPaaS market, 2021.
  • Strategic acquisitions and partnerships are also prevalent and often extend new/exciting functionalities:
  • MessageBird purchased SparkPost to enhance its email offering. 
Source: Gartner 2021

Source: Gartner 2021

  • Vonage acquired TokBox for video, purchased to enhance its artificial intelligence capabilities, and partnered with Sendinblue, adding an email offering to its CPaaS portfolio.
  • Sinch acquired Pathwire for email and for, well, AI. 
  • Twilio purchased Electric Imp, putting it further ahead in IoT. 
  • 8×8 bought Jitsi to bolster its video capabilities. 


The CPaaS Software Market

As CPaaS technology gets used to power increasingly mission-critical and relevant software platforms and applications, its market value reflects that more and more. Let’s explore that notion further in stats:  

  • In 2016, the CPaaS market got valued at $2 billion. In 2022, IDC predicts that value will increase to nearly $11 billion (IDC).
  • Alternative digital media messaging solutions have gained more traction in the CPaaS arena. And features like Rich Communications Services (RCS) business messaging could become the second-highest source for CPaaS revenue within the next five years and account for 15% of worldwide CPaaS revenue by 2025 (Talk CMO). 
  • RCS business messaging traffic will reach 415 billion messages by 2025 – up from 160 million messages in 2020 – representing a growth rate of a whopping 2,500%.
  • The CPaaS arena entered a new era of enormous growth guided by CPaaS giants: Twilio and Vonage (formerly Nexmo) (IDC).


CPaaS Software, Evolving How we Connect

Everything moves faster during COVID-19. It seems like yesterday we entered the era that would forever change how we did everything, communication being chief among them.  We are sure to experience tons of other innovations in the CPaaS space and the introduction of many bleeding-edge technologies that all have the express goal of boosting workplace productivity along with agility.

You can see CPaaS in action with automated reminders, mobile payments and integrated marketing communications.

CPaaS allows you to choose specific APIs into an existing platform in order to customize it. UCaaS software is a platform that comes with built-in features.

It’s a programming interface that allows you to build certain software features. Communications APIs allow you to embed features like calling and SMS texting.