IDC predicts that the global Communications Platforms as a Service ( CPaaS ) market will reach over $17 billion by 2023, at a compound growth rate of 39%. Here we’ll explain more about this important term, how it compares to basic SMS, and how your business can benefit from CPaaS.
What is CPaaS?
CPaaS stands for Communications Platform as a Service. Juniper cayman islands whatsapp number data 5 million defines CPaaS as “a cloud-based platform that enables enterprises to quickly and easily integrate communication capabilities such as voice, video, and messaging into their own applications, without needing to build backend interfaces and infrastructure. This enables them to add new capabilities such as chatbots, service agents, and contact centers into their customer-facing applications with minimal effort.” Ultimately, CPaaS is about engineering the engine behind communication services with the benefit of scalability.
At the heart of CPaaS is the support and orchestration of multiple communication channels, such as:
SMS
Facebook Messenger
RCS
Impact users in seconds and through different channels.
What is the difference between the A2P SMS market and the CPaaS market?
The market has naturally evolved from A2P SMS to CPaaS. Popularized in the 1990s, the A2P (application-to-person) SMS market is based on the delivery of SMS messages and is focused on the telecom ecosystem. This mature industry is giving way to the CPaaS market, which, with the possibility of omnichannel capabilities, has a larger addressable market and a broader set of communication use cases. The CPaaS market is a newer phenomenon with many stakeholders, including:
Telecommunications
OTT
Why is CPaaS important for your business?
CPaaS ensures that your business does not need its own hardware to connect with your customers and provides the opportunity for communication solutions based on creating value for your consumers, in addition to basic communication capabilities. It enables easier, faster, more secure and more cost-effective customer engagement. Built on APIs, CPaaS portals allow you to manage and use products and services in value-added applications . Communications are simplified because you have access to your customers’ preferred channels on a single platform.
If you don't use your customers' preferred channels, your competitors will!
CPaaS allows you to connect with your customers across multiple channels. Customers expect a personalized experience, and with access to multiple channels, your business has options to reach the right customers in the right way. While SMS has a 98% open rate, reaching your customers through the most relevant channels increases engagement and improves user experience. If you don’t use your preferred channels, your competitors certainly will! CPaaS allows you to connect your business with current, new, or potential customers through communication networks. The use cases for CPaaS are endless, from delivery notifications to retail marketing, reminders, and alerts. CPaaS allows you to engage, support, inform, and convert your customers more effectively than ever before.
References:
“Worldwide Communications Platform-as-a-Service Forecast, 2019–2023,” IDC, 2019.
