CPaaS providers create a communication service platform that targets developers without requiring a large investment. Increasingly, the API platform provided by CPaaS vendors is also growing, not only covering SMS, voice, video, and chat but also security features, AI, chatbot, and omnichannel. Along with the development of this industry, the number of services offered is also increasing. So, as an entrepreneur, you need to know what the current CPaaS market is like and what kind of CPaaS provider is suitable for you to use for your business development.
CPaaS Market Overview
CPaaS creates new communication channels that were previously difficult to implement by integrating text messaging, voice calls, and video conferencing into web-based mobile applications. This integration is implemented into applications intended for consumers to consumers (C2C) or business to consumers (B2C), such as click buttons to send messages or make phone calls contained on the website. CPaaS vendors aim to make it easier and faster for companies to provide communication services by adding messaging, voice, and other forms of communication capabilities to consumer applications such as Facebook Messenger and WhatsApp, online trading applications such as Uber and Airbnb, and various other business applications.
Although the CpaaS market is still relatively new, as communication platforms are becoming more and more important to businesses, the competition is getting more and more competitive. Both startups and incumbents recognize the revenue opportunities that CPaaS provides. It is estimated that revenue from CPaaS services will continue to grow from $2.7 billion in 2018 to nearly $5.2 billion by 2023. There are several key success factors for companies operating in the CPaaS market, including:
- APIs
It will be easier, faster, and cheaper for the company if the application is added to the communication service and back-end system by the CPaaS provider than if the company registers with a traditional service provider such as an SMS aggregator. Because the core of a CPaaS provider’s offering is its cloud-based API and technology.
- Online service delivery
Developers can register for CPaaS services and resources online for example via API documents and tariff cards
- Back-end infrastructure
Enterprises needn’t worry because developers can access enterprise CPaaS systems to build, test, and run the communication elements they add to their applications.
- Usage-based business model
Companies and developers only pay for what they use in a month, such as SMS, omnichannel plans, and more without requiring a contract to be signed. Pricing is usually very transparent and published on the CPaaS provider’s website.
- Continued development of service portfolio and underlying platform in line with customer needs
CPaaS providers will continue to add new APIs and platforms such as video, chat, and chatbots and also invest in the underlying communication network. This allows companies to choose from a variety of services provided by CPaaS vendors.
- Providing access to global communications networks
CPaaS providers enable companies to deliver communication traffic to customers, employees, and the public in their marketplace. CPaaS providers also provide additional capabilities to create a quality communication experience for enterprises.
How CPaaS Help Your Company: Use Case Example
CPaaS vendors typically provide APIs to integrate messaging, voice, video, and chat in a single communication application. However, some CPaaS providers have also added other features such as APIs for fax as used in Japan, APIs for industry verticals such as healthcare and healthcare, and APIs for connected devices such as loT. CPaaS providers also offer their APIs and platforms to improve communication quality with features such as phone number verification, security, AI, and chatbots, enabling omnichannel notifications and more.
There are a number of messaging, voice, and video use cases that CPaaS providers can access for alerts and notifications, click-to-call web chat, video conferencing, mobile calling services, and authentication. So how can CpaaS help your company? It is necessary to identify what solutions your company needs, for example, the case of omnichannel users or group messaging. This use case will be integrated with the company’s information system. Typically, companies will deploy user cases via CPaaS within one organizational department, when this use case provides measurable benefits, other use cases will be added.
User cases are easily replicated across the organization and provide several benefits such as increasing profits, improving customer service, increasing internal productivity, and increasing the company’s ability to respond to emergencies.
How to Choose CPaaS Provider
Complexity in the CPaaS market includes multiple vendors offering communication services via APIs, which means that CPaaS providers tend to have a wide range of discretion. Companies that want to improve communication services with CPaaS, need to carefully identify what features are offered by each CPaaS vendor and tailored to the needs of the company. Below are four categories of CPaaS vendors that can be your illustration in choosing a provider.
- Born in the cloud, this group includes CPaaS providers rooted in cloud-based platforms from the start.
- Messaging roots, this group includes CPaaS providers who have evolved from traditional messaging to services around SMS with APIs.
- Enterprise comms specialists include CPaaS providers who have been in the enterprise communications services business for some time and have a strong UC network offering for enterprise communications.
- Telco CPaaS providers, include CPaaS players through their own platform development or acquisition. This group includes Telco subsidiaries.
Summary
The increase in communication services for businesses makes CPaaS providers increasingly develop their API platforms by offering features that not only include SMS, voice, video, and chat but also add security, omnichannel, AI, and chatbot features. Departing from this, the revenue from CPaaS services will continue to grow every year. Companies that want to use CPaaS communication services, need to carefully identify use cases that are tailored to the company’s needs and also choose the appropriate CpaaS provider.
For those of you who need omnichannel as a CPaaS communication service solution, you can use the services provided by OCA. You can blast messages to your customers quickly and interact with your customers easily and efficiently. Let’s use OCA now!
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