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GAIN COMPETITIVEADVANTAGES THROUGHUCaaS ADOPTIONFinding the Best Fit for Mid-market BusinessCommunications TransformationF RO S T & S U L L I VA N E B O O KThe contents of these pages are copyright Frost & Sullivan. All rights reserved.frost.com
Gain Competitive Advantages through UCaaS AdoptionCONTENTS3Businesses Adopt Cloud Services and UCaaS to GainPowerful Benefits4Evolving Market Trends Indicate Now is the Time toAdopt UCaaS5Cloud Communications Adoption is Critical for Long-termSuccess in the Mid-market6UCaaS Penetration among Mid-market Organizationsis Rising7Reaping UCaaS Benefits amid Existing Mid-marketChallenges8UCaaS Solution Considerations9UCaaS Provider Considerations10Success Strategies for Mid-market BusinessesAdopting UCaaS11Common Pitfalls to Avoid12Begin Your Communications TransformationNow to Stay Ahead13Vendor Spotlight: Claro Enterprise Solutions14Key Benefits of Using Claro UCaaS2
3Gain Competitive Advantages through UCaaS AdoptionB U S I N E SS E S A DO P T C LO U D S E RV I C E SA N D U CaaS TO G A I N P OW E R F U L B E N E F I T SBusinesses increasingly adopt Internet Protocol (IP) telephony and unifiedcommunications as a service (UCaaS) to enhance operational efficiencies,worker productivity and customer service.Small businesses with little legacy infrastructurewere the first to embrace cloud solutions suchas UCaaS for flexibility and predictable costs.Most large enterprises in need of infrastructurerationalization have launched digital transformationprojects that involve migrating communications andcollaboration solutions to the cloud.To address diverse customer technology preferencesUCaaS providers are innovating faster than ever.Maturing technologies and business models aredriving UCaaS penetration across businesses ofvarying sizes, verticals and geographies.Mid-market organizations—with 100 to 2,500users—can now also choose from a broad array ofUCaaS offerings tailored to their unique businessneeds and evolving communications requirements.To ensure deployment success, businesses adoptingUCaaS must carefully consider their priorities andconduct thorough due diligence to select the righttechnology partner.82%of North American decisionmakers report having movedor planning to move partor all of their enterprisetelephony solutions to thecloud by 2019.UCA AS MARKET—TOP REASONS FOR UCaaS USAGE,UNITED STATES, 201839%Easier for IT to manage38%UCaaS is more secureA benefit for remote andmobile employees31%Enables more effectivecustomization31%Allows better focus onthe core business31%Allows scaling up and downmore easily and cost effectively28%Offers a better selection ofendpoints (from a variety of vendors28%rather than just one)27%Enables cost reductionAllows flexible integrationswith third-party softwareThe North Americanhosted IP telephony andUCaaS user basewill grow2017 to 2024at a CAGR of23%Alows access to newerfeatures faster0N 127102024%21%3040Source: Frost & Sullivan
4Gain Competitive Advantages through UCaaS AdoptionE VO LV I N G M A R K E T T R E N DS I N D I C AT E N OW I ST H E T I M E TO A DO P T U CaaSDemand for flexible technology consumption is accelerating. UCaaSproviders have marketed extensively to small businesses leveraging digitalchannels, whereas large telcos have educated enterprises using their directsales forces. However, mid-market organizations have received limitedprovider attention and are not fully informed of contemporary UCaaSsolutions’ substantial and continually evolving benefits.In the past, UCaaS offerings rarely met mid-market companies’ specificrequirements. Early UCaaS solutions primarily catered to small businesseslooking for simple, plug-and-play communications services, whichwere inadequate to address mid-market businesses’ need for morecomprehensive functionality and flexible packaging and pricing. In time,providers developed sophisticated solutions for larger enterprises, whichwere out of reach for more cost-conscious UCaaS buyers. Thus, mid-marketbusinesses have been left behind as they attempt to balance needs forfeature-rich, reliable and secure cloud communications services against ITbudget and staffing constraints.Today, visionary UCaaSproviders are filling thegap that exists in the midmarket with innovativeUCaaS solutions designedfor this customersegment. Overall, cloudservices and UCaaSadoption is ramping upin all business segments,driven by convergingdemographic, economicand technological trends.MARKET READINESSOngoing digitaltransformation withinbusinessesGlobalization ofbusiness in search ofnew markets and talentGrowing need for the entireworkforce to effectively collaborateto enhance customer valueUbiquitous and reliable connectivityenabling anywhere, anytime accessto IT and communications toolsDisruptive new andinnovative products,services and businessmodelsAn increasing number ofmobile and remote workersIncreasing demand for cutting-edgemulti-modal communications andcollaboration capabilitiesGrowing need to reduce IT complexityand allow the company to focus onstrategic business operationsMarket conditions are ripe for your mid‑market business to moveto cloud services. ENHANCE YOUR COMMUNICATIONS ANDCOLLABORATION CAPABILITIES by adopting UCaaS andaligning your organization with key market trends.Source: Frost & Sullivan
5Gain Competitive Advantages through UCaaS AdoptionC LO U D CO M M U N I C AT I O N S A DO P T I O N I S C R I T I C A LFO R LO N G -T E R M S U CC E SS I N T H E M I D - M A R K E TDespite common cloud migration objectives—freeing IT resources to perform more strategictasks and faster access to advanced features forenhanced workforce productivity—businesses indifferent customer segments often seek to addressdissimilar pain points.become highly collaborative, customer-centricorganizations. To achieve this goal, they mustintegrate UCaaS with advanced contact center as aservice (CCaaS) to effectively leverage all companyresources from sales staff to contact center agents,technical support, knowledge workers and others.Mid-market businesses leverage UCaaS toaugment limited IT resources and access robustfunctionality, while keeping costs under control.Distributed organizations are also looking todeliver the optimal feature sets to deskbound,mobile and remote workers regardless of theirphysical location or local voice/data infrastructure.Such organizations typically manage disparate,multi‑vendor technologies. By adopting UCaaS,they can deliver consistent functionality to theiremployees and streamline solutions management.Forward-looking mid-market businesses pursuingdigital transformation must incorporate UCaaSand CCaaS adoption in their broader IT vision andcloud migration strategies. As the use of digitaltechnologies leads to intensified competition in allindustries, advanced cloud solutions can enablemid-market companies to outcompete nimble andentrepreneurial small businesses, as well as largeenterprises with rich IT resources.Businesses of different sizes andacross world regions are investing inIT and communication technologiesto ACHIEVE IMPORTANTBUSINESS OUTCOMES.Mid-market businesses’ ultimate goal, however,is to deliver differentiated products and servicesand greater customer value. To enable innovation,accelerated decision making and an excellentend‑to‑end customer journey, businesses mustNAVIGATING AN ER A OF DIGITAL TR ANSFORMATION—TOP DRIVERS FOR IT INVESTMENT OVER NEXT 2 YEARS,GLOBAL , 2017 TO 2019Improve productivity33%32%30%28%26%24%23%21%19%Reduce operational costsImprove customer experienceImproving digital presenceBoost creativity and innovationImprove sales & marketing effectivenessImprove collaborationExpand to new markets, to new regionsAccelerate decision makingAttract and retain workforce010203039%40N 1,934Source: Frost & Sullivan
6Gain Competitive Advantages through UCaaS AdoptionU CaaS PE N E T R AT I O N A M O N G M I D - M A R K E TO RG A N I Z AT I O N S I S R I S I N GMid-market businesses (100 to 2,500 users) wereestimated to account for 43% of total UCaaS usersin 2018 and are projected to reach 54% of the totalinstalled base by 2024.The relatively under-served mid-market UCaaS segment will growfaster than the total market throughout the next six years as moresolutions tailored for mid-market businesses become available.Service providers have made significant strides in severalkey areas pertaining to mid-market technology requirements,including:Hosted IP telephony andUCaaS users accounted for17%of the North Americanaddressable market in 2018and are expected to reach52% by 2024.Advanced collaboration functionality(e.g., multimedia conferencing,content sharing), instant messagingand presence, and mobilityEnhanced service providerimplementation and support (e.g.,assessment, professional andmanaged services)Integrated UCaaS and CCaaSFlexible APIs and greater thirdparty software interoperabilityenabling true customization andtighter multi-vendor integrationGreater service reliability andstronger SLAs (e.g., geo-redundantdata center infrastructure, end-toend QoS mechanisms)Improved security postureand industry compliance (e.g.,HIPAA, PCI)Broader selection ofcommunications endpoints (e.g.,desktop and DECT phones,conferencing devices, headsets, PCand mobile soft clients)Source: Frost & Sullivan
7Gain Competitive Advantages through UCaaS AdoptionR E A P I N G U CaaS B E N E F I T S A M I D E X I S T I N GM I D ‑ M A R K E T C H A L LE N G E SThe mid-market itself has diverse technology requirements. At least two distinctsub‑segments—businesses with 100 to 999 users and those with 1,000 to 2,500users—present notable differences in technology adoption preferencesBecause of these disparate requirements, mid-market businesses frequently settle for UCaaS solutionsill‑fit for their specific needs. Common problems include: lack of mission-critical features, poor reliability andsecurity, and limited customization and/or integration with important third-party software.100 to 999 users1,000 to 2,500 usersHighly budget-consciousHighly diverse user base (demographics, jobroles and technology needs)Favor simplicityExperienced, highly skilled IT staff typicallymake IT and telecom investment decisionsTechnology investment decisions oftenmade by business owners orline-of-business (LOB) managersIncreasing role of LOB managers in IT/telecominvestments, including “shadow IT”Limited legacy infrastructureComplex IT and telecom environments withdisparate multi-vendor solutionsOften lacking a strong vision for overalldigital transformationLikely to acknowledge the need for a holisticdigital transformation strategyMay be single-site or distributedTypically highly distributed organizationsSeek productivity and cost-efficiencybenefits when investing in UCaaS andother cloud servicesSeek IT infrastructure rationalization andoperational efficiencies, as well as theflexibility to deliver right-fit functionality totheir diverse user base when adopting UCaaSFocus on ease of use and management, aswell service reliability when selecting aUCaaS solution and other cloud servicesFocus on security, reliability, customizationflexibility and integration with existinginfrastructure when selecting a UCaaSsolution and other cloud servicesIT and communications investment decisionmakers must consider the SPECIFICCHALLENGES AND OBJECTIVES oftheir organizations to determine the rightUCaaS solutions and deployment approach.Source: Frost & Sullivan
8Gain Competitive Advantages through UCaaS AdoptionU CaaS SO LU T I O N CO N S I D E R AT I O N SUnderlying technology and architecture, features, packaging and pricing, user and ITadmin interfaces, APIs and more differ across UCaaS solutions. Making the right choiceamong the many options requires investment decision makers to become familiar withimportant factors that affect the user experience quality and the company’s return oninvestment (ROI).Technology and Architecture:Multi-tenant architectures enable cost-effectivescalability and functionality updates. Multi-instancearchitectures, typically based on modified premisesbased technologies, can be better suited for hybrid(integrated cloud and premises-based) deployments.Features: Providers continually enhance theirsolutions’ functionality, but many still lack advancedfeatures such as enhanced mobility, multimediaconferencing and collaboration, integrated contactcenter, advanced analytics, etc.Packaging: All-inclusive service bundles (i.e.,full feature set minutes of use) have becomethe norm. However, some providers offer tieredseat licenses that better fit diverse user types andcompany budgets. Some providers also offer certainfeatures or usage allowances (e.g., minutes, cloudstorage) a la carte for additional fees.Cost: Monthly fees, installation and integrationcosts, additional usage charges and price of a-lacarte features can all affect the UCaaS total cost ofownership (TCO). Businesses must evaluate all costitems to accurately compare various UCaaS options.User Interface (UI): The user experienceAdmin Portal: Many first-generation UCaaSsolutions did not provide sophisticated administrationcapabilities. Providers catering to mid-market andenterprise businesses have developed admin portals,often leveraging artificial intelligence and othertools to enable web-based, multi-site managementand multiple permission levels, as well as advancedanalytics for current and predictive analyses.Integration and Customization: Notall hosted IP telephony and UCaaS solutions supportflexible customization and integration with thirdparty solutions. Innovative providers offer open APIsand communications platforms as a service (CPaaS)that facilitate custom applications development andcommunications integration with mission-criticalproductivity and business tools.Service Performance, Securityand Compliance: Data center setup(e.g., location, geo-redundancy, etc.), securityprotocols and compliance certifications greatlyimpact service uptime, resilience and overallcustomer value. Historical performance data, SLAs,customer references and compliance certificationdocumentation can help to accurately assess andvalidate solution capabilities.is a crucial innovation frontier for service providersand a top consideration for businesses lookingto maximize their UCaaS investments. The mostinnovative solutions offer rich, contextually-enhancedyet highly intuitive UIs that provide a single paneof glass for multiple communications modalities(e.g., messaging, calling, presence, conferencing,content sharing).Source: Frost & Sullivan
9Gain Competitive Advantages through UCaaS AdoptionU CaaS PROV I D E R CO N S I D E R AT I O N SProvider capabilities significantly impact solution adoption and effectiveusage as well as UCaaS ROI. Businesses must carefully evaluate providersto find the best fit for their needs.Key Attributesto Look forUCaaS andothernext-generationand managedservices(network, IT,security, cloud)expertise andtrack recordDeepunderstandingof businessneedsBroader portfolio(broadband, SDWAN, MPLS, IT)UCaaS roadmap(pending featureenhancementsand APIs)Geographic reachand networkfootprintCustomer service(internationaland supportpresence)(24/7/365 liveMarket powersupport, customer(stability, marketonboarding andshare, growthtraining bestrates, profitability)practices, mplementarycapabilities)TOP UCaaS PROVIDER SELECTION CRITERIA ,UNITED STATES, 201853%52%47%41%Reliable serviceSecurityGood user interfaceCost per seat28%Collaboration tools17%15%13%11%10%Contact center functionalitiesOpen standards and interoperabilitywith third-party solutionsTechnology evolution roadmapBroad technology portfolio thatallows for one-stop shoppingScalability5%Expertise in system integration and deployment01122334455N 127Source: Frost & Sullivan
10Gain Competitive Advantages through UCaaS AdoptionS U CC E SS S T R AT E G I E S FO R M I D - M A R K E TB U S I N E SS E S A DO P T I N G U CaaSTo future-proof their communications investments, mid-market businesses must makewise choices when adopting UCaaS. The following represent important guidelines forUCaaS investment decision makers:Focus on total costof ownership, ratherthan solely on priceEvaluate platformand full breadth ofprovider capabilities Reasonable monthly fees Efficient, scalablearchitectures that providemaximum value in bothvery small and very largedeployments Choose a partner whounderstands your business,employs a consultativeapproach pre-sale and takesan advisory role post-sale. Ability to deploy UCaaS aspart of integrated, strategiccloud solutions that alsoinclude contact center,security, connectivity,endpoints and other cloudservices (e.g., compute,storage) Ensure your selectedprovider is seeking along‑term relationship anddemonstrates effectiveaccount management andcustomer onboarding, trainingand support. Comprehensive servicepackages, rather than“nickel‑and-diming” Straightforward contractterms and conditions Tiered seat licensesright‑fitted for different usertypes/personas Strong reliability, security andregulatory compliance postureto minimize unanticipatedcosts (e.g., service downtime,security breaches or legalpenalties)Assess thecustomer experienceholisticallySource: Frost & Sullivan
11Gain Competitive Advantages through UCaaS AdoptionCO M M O N P I T FA L L S TO AVO I DMid-market organizations must watch out for some common errors that businesses makewhen evaluating and adopting UCaaS solutions.Don’t be dazzled by the bells and whistles;focus on the essentials insteadSee the forest, not just the treesForward-looking businesses are staking their futuresuccess on investing in cutting-edge technologyto boost productivity, organizational agility andotherwise gain a competitive edge. UCaaS “bells andwhistles” only deliver limited results unless backedby excellent service performance. Compel providersto present evidence of their service uptime, resilienceand scalability metrics in addition to their softwaredevelopment prowess.Poorly coordinated technology deployments cancreate silos that prevent your business from gainingthe full ROI. Communications upgrades must bepart of a holistic vision for your company’s IT andtelecom environments, accounting for IT staff, C-levelexecutive, LOB manager and user requirements. Plantechnology investments to avoid the security andcost issues related to “shadow IT” and enable morecentralized—and thus more cost-effective—solutionand vendor management.Avoid a cookie-cutter approach; flexibilityis key to long-term successProvider size and brand matter, but arethey the right fit for you?UCaaS buyers are sometimes tempted to choosecookie-cutter solutions that may be less expensiveor more comprehensive. However, such solutionscan prove highly ineffective as the business evolves.Businesses should right-size employee feature setsas needs change. For example, businesses may startwith a basic feature set and add more advancedcollaboration, mobility or contact center functionalityas the need arises.Large telcos with extensive solutions portfolios canoffer a one-stop-shop experience to businesseslooking to deploy UCaaS, but often fail to providepersonalized attention to smaller accounts. Nextgeneration providers with strong brands and largemarket shares may not be capable of adequatelyaddressing mid-market implementation and lifecyclesupport requirements. Big brands such as Amazonand Google, which only recently launched UCaaS,may be unable to provide the complete feature setrequired by mid-market companies. Conduct duediligence and rigorous assessment to ensure that theselected solution and provider are the right fit foryour business and your specific growth objectives.Platform openness and partner ecosystems are alsoimportant. Invest in UCaaS solutions that integratewith productivity, business and vertical software toachieve a more tangible impact on mission-criticalworkflows.Source: Frost & Sullivan
Gain Competitive Advantages through UCaaS AdoptionB E G I N YO U R CO M M U N I C AT I O N ST R A N S FO R M AT I O N N OW TO S TAY A H E A DPowerful demographic, macro-economic and technological trends areimpacting the competitive dynamics in all industries.EMBRACE DIGITAL TECHNOLOGIES to address shifting business, employee andcustomer requirements and transform into a customer-centric, collaborative organization.Mid-market companies are under tremendous pressure to compete moreeffectively with nimble small businesses and resource-rich large enterprises.ADOPT CLOUD SERVICES as part of your digital transformation efforts to become moreagile, efficient and deliver greater customer value.Mature UCaaS technologies and provider delivery models adequatelyaddress the unique challenges and requirements of mid-market businesses.LEVERAGE ADVANCED UCaaS SOLUTIONS to upgrade your communicationscapabilities and free internal resources for more strategic projects.To future-proof theirinvestments, mid-marketbusinesses must carefullyassess the various solutionand provider options.CONDUCT THOROUGH DUEDILIGENCE to ensure that thechosen solution aligns with yourspecific needs.CHOOSE A PROVIDERWITH A STRONG FOCUS ONTHE MID-MARKET, proventechnology, a feature‑rich,secure and reliable UCaaSoffering, extensive UCaaS marketexperience, a broad solutionsportfolio and robust networkcapabilities.ENSURE THAT THE UCaaSSOLUTION ALLOWS theutilization of a greater selectionof communications endpoints(e.g., phones, conferencingdevices, headsets)12
13Gain Competitive Advantages through UCaaS AdoptionV E N DO R S P OT LI G H T:C L A RO E N T E R PR I S E SO LU T I O N SThrough its approach and capabilities, the company is wellpositioned to deliver compelling customer value to businessesseeking UCaaS solutions.A global technology services company with extensive UCaaS expertise and abroad services portfolio, Claro Enterprise Solutions—a subsidiary of AmericaMovil—has defined a go-to-market strategy around three inter‑related elements:Managed ServicesInternet of ThingsBusiness as a ServiceProvider Fact Sheet20 years of marketexperience26 countriesof presenceSOLUTIONS PORTFOLIOUCaaS Solution DetailsIndustry-leadingBroadSoft/Ciscotechnology foundation24x7x365specializedsupportCOMPREHENSI V E FE ATURE SE TWireline and wireless servicesEnterprise voice/cloud PBXBroadband, SD WAN, MPLSUnified MessagingCloud solutionsInstant Messaging (IM)/PresenceSecurityCollaborationInternational toll-free numbersMobilityDigital transformationContextual IntelligenceAudio, Video and Web ConferencingWeb PortalCall CenterHotelingLocal and long-distance calling minutesSource: Frost & Sullivan
Gain Competitive Advantages through UCaaS AdoptionK E Y B E N E F I T S O F U S I N G C L A RO U CaaSBusinesses Evaluating Claro Enterprise Solutions as their Future UCaaS Provider MustConsider the Following FactorsPROVEN TECHNOLOGY foundation ensurescutting-edge functionality, as well as servicereliability, security and scalability.A SOPHISTICATED WEB PORTAL providesvisibility and management of the user environmentwith dashboards and on-demand report generation.TIERED SERVICE BUNDLES address differentcompany and user needs with right-sized featuresand cost.OPEN APIS AND THIRD-PART Y SOFTWAREINTEGRATION enable businesses to leveragecommunications solutions to more directly impactimportant business processes and workflows.HIGHLY COMPETITIVE PRICING allows eventhe most cost-conscious businesses to gain accessto robust communications and collaborationfunctionality.GLOBAL PRESENCE enables support formultinational businesses.AN INTEGRATED PL ATFORM for both UCaaSand CCaaS enables cost efficiencies and a bettercustomer journey.MOBILIT Y AND HOTELING CAPABILITIESallow businesses to more effectively supportmobile workers.EX TENSIVE SOLUTIONS PORTFOLIO allowsone-stop shopping for businesses with broadertechnology requirements.ABILIT Y TO SUPPORT INTEGRATION withCisco premises-based solutions enables hybridenvironments and a paced migration to the cloudfor businesses with substantial premises-basedinvestments.A CONSULTATIVE APPROACH, customtailored solution design and robust implementation,onboarding and lifecycle services ensure successfuldeployments and higher ROI.Through its approach and capabilities, Claro is well positioned todeliver compelling customer value to businesses seeking UCaaS solutions.VISITWWW.USCLARO.COM14
15SILICON VALLE Y3211 Scott BlvdSanta Clara, CA 95054Tel 650.475.4500Fax 650.475.1571SAN ANTONIO7550 West Interstate 10 Suite 400San Antonio, TX 78229Tel 210.348.1000Fax 210.348.1003LONDON566 Chiswick High RoadLondon W4 5YFTel 44 (0)20 8996 8500Fax 44 (0)20 8994 1389Frost & Sullivan, the Growth Partnership Company, works in collaborationwith clients to leverage visionary innovation that addresses the globalchallenges and related growth opportunities that will make or break today’smarket participants. For more than 50 years, we have been developinggrowth strategies for the Global 1000, emerging businesses, the publicsector and the investment community. Is your organization prepared forthe next profound wave of industry convergence, disruptive technologies,increasing competitive intensity, Mega Trends, breakthrough best practices,changing customer dynamics and emerging economies?For information regarding permission, write:Frost & Sullivan3211 Scott BlvdSanta Clara, CA 95054
Businesses increasingly adopt Internet Protocol (IP) telephony and unified . communications as a service (UCaaS) to enhance operational efficiencies, worker productivity and customer service. 0 10 20 30. 40 UCAAS MARKET— TOP REASONS FOR UCaaS USAGE, UNITED STATES, 2018. Easier or to manage UCaaS is more seure A benefit for remote and mobile .
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