There have been widespread mergers and acquisitions in the unified communications market as the demand for cloud services has increased. The result is that cloud services customers receive the benefits of scale and cost-effectiveness and the last vendors standing enjoy the amassed market share.

The impact of cloud on unified communications: Cloud technology is shifting its role in the enterprise, with IT teams getting more comfortable partnering with service providers. Momentum is increasing here, with many enterprises looking for additional ways to capture the same kinds of benefits they’ve experienced in areas like data storage. In their mission to outsource technology, unified communications often makes good sense.

One of the key benefits of cloud services is the ability to categorize the subscription-based pay model as an operating expense rather than the big capital investment that usually comes with a technology upgrade. There is generally not a big need to purchase hardware. Even in a transition to cloud with something like unified communications, inexpensive IP phones can be rented at a low cost.

Cloud services allow enterprises to accurately predict their future spending, and that same predictability causes Wall Street to embrace the business model as well. Investors see that the trend of outsourcing technology is gaining traction and will likely have staying power over the long term.

The role of on-premise providers: So, does this shift in the unified communications business model mean that on-premise software vendors are left behind? There are some hurdles for on-premise providers with a heavy investment in hardware that are now shifting over to become cloud providers. On-premise providers aren’t necessarily left in the dark, however.

There are certain situations where enterprises require on-premise unified communications, due to either utility or a lower total cost over time. In addition, many on-premise providers are acquiring smaller cloud service providers in an effort to offer an array of unified communications options from one vendor.

The benefits: Of course, the winners in this environment include the cloud services providers who are the last standing after the rash of mergers and acquisitions has settled down. The other beneficiary is the customer, who experiences a wider variety of options through a single vendor, access to the cost-effectiveness that’s passed down from the vendor in the form of a lower subscription fee, and the improved customer experience that comes from innovation.

When it’s time to evaluate your unified communications needs, contact us at Clarksys. You need a cloud provider that’s invested in helping you grow through the right technology for your business goals.