Synergy Research Group, an independent market research firm, released a new report on June 14, 2017 on the state of the Unified Communications as a Service (UCaaS) market. Synergy points out that revenue for the UCaaS market grew by 22% year-over-year in Q1 2017, while the on-premises enterprise voice market declined by 9% during the same period.
“Major barriers to cloud adoption are now almost a thing of the past,” said Jeremy Duke, Founder and President at Synergy Research Group. “We’re seeing continued erosion of on-premises PBX systems. These tailwinds are reflected in the growth we’re seeing in the overall UCaaS market, particularly with RingCentral, which has pulled ahead as the UCaaS category leader and is accelerating at a rapid pace ahead of rivals, which are seeing flat to declining growth rates by revenue.”
Synergy reports that RingCentral is the #1 worldwide market share leader in both revenue and subscriber seats for UCaaS. With a 19% market share by revenue, RingCentral is growing twice as fast as the overall UCaaS market.
In fact, Synergy Research reports that RingCentral’s flagship product, RingCentral Office, is ranked the highest by subscriber seats among all UCaaS vendors, growing at 53% year-over-year, which is 137% faster than its nearest competitor.
Our success stems from our relentless focus on innovation and our differentiated mobile-first, global, open platform collaborative communications solutions that delight both end users and IT audiences.
As we look ahead, we are excited about the market opportunity for cloud communications as enterprise customers empower their global and distributed workforce to work anywhere, anytime, and on any device.
As the market transition to the cloud accelerates, as noted by Synergy Research and evidenced by the demise of legacy vendors like Avaya, we are confident we’ll be a $1B business by 2020.
I’d like to take this opportunity to thank our customers and partners for their trust and support, and our employees for their relentless commitment and dedication.