All around us, the way people want to work is changing. Today’s workforce is highly mobile, distributed, and requires access to apps and data anytime, anywhere, and from any device. Workers also want unified experiences that enable them to communicate how they choose and simplify their workflows by integrating with the business apps they use every day. Cloud is the only way to deliver the flexibility, scale, and connected experiences today’s digital workforce demands. As a result, demand for cloud-based communications and collaboration solutions is expanding rapidly worldwide.
According to Synergy Research Group, revenue for the unified communications as a service (UCaaS) market grew by 22 percent year-over-year in Q1 2017, while the on-premises enterprise voice market declined by 9 percent during the same period, demonstrating strong customer preference for cloud solutions. And RingCentral is winning in the cloud, growing nearly twice as fast as the overall UCaaS market, with 39 percent market share based on annual recurring revenue (ARR) for RingCentral Office.
This acceleration of the cloud communications market is driving heightened interest and necessity from on-premises players to transition their legacy solutions to cloud. Today’s announcement from Microsoft to replace Skype for Business with Microsoft Teams is a great example of this. This marks their third attempt to figure out a product strategy for Skype for Business Online that can solve the enterprise’s urgent need to move UC solutions to the cloud. Unfortunately for enterprise customers, even if Microsoft has plans to transition Skype for Business Online to Microsoft Teams, they continue to understate a significant core issue—Microsoft’s cloud PBX and telephony capabilities are still not capable of replacing legacy on-premises enterprise communications systems from vendors like Avaya and Cisco.
On the other hand, RingCentral was born in the cloud. It’s what we do every day. We understand the changing landscape for professionals in every industry. And this—combined with our relentless pursuit of innovation in support of our customers—is why we continue to lead the industry with solutions that empower teams to get their work done faster, more efficiently, and on their terms.
I’d like to highlight a few of RingCentral’s accomplishments so far in 2017 as the industry continues to embrace the cloud:
Accelerated growth and industry recognition: Our strong focus on innovation has earned RingCentral numerous industry accolades to date, including being named a leader in the 2017 Gartner Magic Quadrant for Unified Communications as a Service Worldwide, the Frost & Sullivan 2017 Company of the Year in Hosted IP Telephony and UCaaS North America, and the No. 1 Cloud Communications Solution Provider by Synergy Research.
Innovating for the future: We released the next generation of RingCentral Office, with an entirely reimagined user experience for how people want to work. The offering is the industry’s first to deliver on the promise of unified communications in a single solution, with new team messaging and collaboration APIs, chatbot and AI support, and 40 out-of-the-box integrations.
Global expansion: RingCentral Office expanded to new areas of the world, and RingCentral will have 17 data centers across four regions with enterprise-grade quality of service, compliance, security and reliability. RingCentral’s global cloud infrastructure has more than 45 direct peering connections with tier-1 international carriers and more than 175 ISPs. RingCentral also provides carrier-grade SLAs for all Global Office locations for both reliability of the platform and quality of calls. Today, the RingCentral Global Office solution is available across 32 countries in North America, Europe, and Asia Pacific, enabling multinational businesses to support distributed offices on a single solution.
Channel momentum: Channel partners see the market shifting toward cloud and are excited to work with RingCentral to deliver the right solutions to their customers. We continue to invest in the channel to accelerate cloud adoption, and this is recognized by our 5-star rating in CRN’s 2017 Partner Program Guide and placement in CRN’s 2017 Channel Chiefs list. This is further validated by one of our partners:
“We have seen tremendous growth for cloud communications, with AVANT UCaaS sales doubling in the past year. RingCentral is an important provider in our cloud portfolio, with a unique approach with enterprise telephony, cloud PBX, online meetings and collaboration all found in a single solution.”
–Drew Lydecker, President and Co-Founder of AVANT
Customer focused: Adoption of cloud solutions is rising among customers as they realize the value of the cloud to their organizations. This year, we added brands such as Hyatt, Tuff Shed, Extra Space Storage, and Carvana to the growing list of customers who are successfully reaping the benefits of cloud communications and collaboration.
We’re at a global turning point in business communications. Organizations are making the move from on-premises systems to the cloud at an accelerated pace. There is tremendous opportunity to drive the industry forward as digital business continues to re-shape the modern workplace, and we’re excited to be leading this market transition through our commitment to innovation for the benefit of customers. 2017 has been a great year so far, but we’re just getting started.
Originally published Sep 25, 2017, updated Aug 10, 2020