Insights Report Forecasts Massive Growth For Cloud Services In The U.S.

Business.com / Technology / Last Modified: February 22, 2017

The cloud services market will increase at a compound annual growth (CAGR) rate of 11.4 percent for the next three years.

The ever-changing speed of technology puts pressure on businesses to make important decisions on how to maintain and expand operations. Cloud computing has become an attractive option for small and medium-sized businesses who want to stay competitive and profitable.

The enabling technology of cloud computing is virtualization. Through this technology, it allows users to cut costs, eliminates the need to acquire too much Information Technology (IT) expertise or knowledge, and focus on core business goals.

Thanks to the inexpensive nature of cloud computing and the ability to outsource some of the day-to-day operations, the adoption of the cloud will continue to skyrocket.

According to a Business Wire, Odin released the fifth annual U.S SMB Cloud Insights report where the cloud services market will increase at a compound annual growth (CAGR) rate of 11.4 percent for the next three years.

It is expected and projected that the market for cloud will go from $25.2 billion in 2015 to $34.9 billion by 2018. In order to maintain steady results, businesses will have to diversify their business operations in order to weather the rough economic conditions.

“Over the five years that we have been conducting this study, we’ve seen a rapid and consistent growth in SMB consumption of cloud services,” said Birger Steen, chief executive officer, Odin. “Applications and capabilities that were previously reserved for enterprise-size organizations are now benefiting millions of smaller businesses. At the same time, SMBs are becoming more sophisticated in their IT and telecom choices, and developers are creating more services and applications specifically for this market segment.”

Communications over time will converge and become more unified to eliminate the traditional hiccups associated with clunky and outdate telecom technology. Be on the lookout for WhatsApp and Facebook’s Messenger apps to be optimized and tailored more closely into the business environment.

Related Article: 8 Ways Cloud Computing Can Increase Productivity and Profits

Upgrading and Migrating Business Voice Services

If you are considering revamping, updating or renovating the office space choices will vary on what type of phone system you want to implement. What is the best option or choices will depend on the existing model of the enterprise and what is it looking to maximize.

IP Based Phone System

Image via Visual.ly

A visual graphic published on the community platform for data visualization and infographics, Visual.ly, explains what choose as the right phone system for the business and what factors to go about choosing the right model that fits for you.

There are some IP based business phone systems for small businesses. You have the following:

  • IP- PBX phone systems
  • Hosted PBX phone systems
  • Cloud PBX phone systems
  • VoIP
  • Unified Communication

The IP-PBX delivers telephone services like a traditional PBX system over a data line like LAN or Wan.

On the other hand, the hosted PBX phone system services gets hosted by an external service provider. What this system bring as an advantage is it helps business owners reduce the cost and complexity of leasing along with installing equipment. In addition, it allows employees to work from anywhere using the device of their choice.

Hosted PBX or virtual PBX is expected to grow to 300 percent over the next three years, according to BroadConnect. Now, cloud PBX is more focused on handling internal calls within enterprise, yet it is limited for additional solutions.

VoIP as the name indicates can allow to have voice calls over the internet. The other attractive option for businesses is unified communication where a company can use integrated data, video and voice in one single supported product. This model optimizes and boosts productivity will centralizing all communications under one single system.

Related Article: 5 Reasons the VoIP Market Will Reach $88 Billion by 2018

Unleash Business Growth, Reduce Operational Costs and Have Flexibility

The message is loud and clear. Do not be restricted or limited by your telecommunication system. Moving your PBX to the cloud with a hosted phone system will drum up business.

Business2Community Infographic

 Image via Business2Community

Another handy infographic by Business2Community illustrates the benefits of adopting this system:

  • Driving cost-effectiveness
  • Improved flexibility
  • Unlimited opportunities and potential

In other words, costs will obviously determine and limit your ability to expand. These hosted options give great cost advantages to businesses by bypassing traditional fixed services.

When you are growing quickly as a business or enterprise growing work demands will force you to make essential decisions. By quickly integrating your business operations with the appropriate cloud provider including hosted voice services it will make processes much smoother and streamlined for you and employees.

These systems are developed to facilitate businesses to move to newer models of profitability and to serve customers more efficiently. This the business environment will be more effective and productive in carrying out its products or services day in and day out.

Related Article: What Is Fog Computing? The Low Down on Cloud Computing's Newest Iteration

Takeaways and Conclusions

Cloud services allow businesses to innovate at their own pace and have a pool of options to choose from. What small businesses want to achieve is their core goals, serve their customers and partners, and most of all deliver a great experience.

Hosted PBX services facilitates to be free of big box and big fees, save a lot, simplify services with one single company, put all of your staff under the same phone system and grow at your own pace.

Most businesses in the future will outsource and virtual a good part of their infrastructure. In addition, as technology becomes so embedded and integrated will continue to see more sophisticated enhancements within cloud and hosted services.

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