Beyond the Hype: Cloud Communications Adoption in 2014

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Acoredialfter looking back on the first half of 2014, we see momentum rising in the cloud communications market and a positive outlook

on the future from our customers.

The research and forecasts from firms like Infonetics Research tell a story of a rapidly growing market for cloud communications, with adoption being driven by real customer demand. We can see that, so far in 2014, cloud communications have moved beyond the hype and are delivering true value for partners and their customers.

As we’ve spoken to our customers over the last 6 months, these are the four things that stood out:


We’ve seen that a large portion of Interconnects, Managed Service Providers (MSPs), and Carriers really understand the cloud communications proposition and what it can do for their businesses. The education phase is always on-going, but increasingly, cloud communications is becoming part of these service providers' vocabulary.


As more service providers adopt cloud communications and deliver to their customers, confidence in these services grow. Both our partners and their customers are benefiting from cloud communications today and that is feeding momentum and encouraging further adoption within both market segments.


Our partners have been giving us feedback about how they want to see our SaaS platform for cloud communications, SwitchConnex, evolve. They have not only bought into the cloud communications value proposition, but are now proactively engaging us and asking to collaborate to make SwitchConnex even better. Partners are sharing their experiences and customer feedback with us and in turn helping our team to develop and deliver new features and functionalities.


More than anything, our partners have been getting the results they want. We’ve been able to help our partners to succeed and meet their business objectives. Partners are achieving up to 65% gross profit margins with our cloud communications SaaS platform. That means they are delivering profitable services to their customers and developing new recurring revenue streams. When service providers capture this kind of revenue opportunity the market will grow. Furthermore, Partners are selling many thousands of new end-points each month, and that rate is increasing rapidly. This is further evidence of the results that our Partners are realizing.