The transition to remote/hybrid work and the influx of Gen Z employees is changing the role of desktop and cordless phones in business communications. Further, the rise of digital enhanced cordless telecommunications (DECT), voice over wireless local area network (VoWLAN) solutions, and artificial intelligence (AI) is challenging conventional industry dynamics. Amid this transformation, the proliferation of software-based communication applications, evolving connectivity solutions, and mobile communications is expected to reduce the demand for traditional phones, at a negative CAGR of 3.1% by 2030. This implies that offering devices that solely provide telephony services is no longer adequate to sustain provider growth. As a result, the pressure on vendors to adapt their business models and growth strategies in response to evolving enterprise needs is at an all-time high.
Frost & Sullivan’s recent Unified Communications Think Tank delved into the realm of Growth Opportunities in Unified Communications and Collaboration (UCC): Exploring the Changing Realities of Business Telephones. This engaging discussion shed light on the growth barriers, challenges, and emerging opportunities to help providers accelerate innovation in the maturing desktop and cordless telephone segment.
Here, the following growth experts collaborated to share their views on disruptive technologies, transformative megatrends, and new business models revolutionizing the future of UCC: Elka Popova, Vice President and Senior Fellow, ICT and Connected Work at Frost & Sullivan and Christopher Pennell, Industry Principal, ICT, at Frost & Sullivan.
Gain valuable perspectives from these experts by clicking here to access the recorded session of this Think Tank.
- Driving Innovation Amid Transformative Megatrends: The demand for private branch exchange (PBX) functionality and public switched telephone network (PSTN) connectivity is rising, boosted by customer migration to cloud/mobile PBX and unified communications as a service (UCaaS). At the same time, there is a decline in fixed desk spaces. This is pushing providers to focus on enabling high-definition audio/visual communications, video meetings, team messaging, and feature-rich devices that support a wider range of applications –Which disruptive technologies will help providers future-proof desktop and cordless phone solutions to maximize incremental revenue?
- Capitalizing on Mobile UCC: With the move to remote work and the need to eliminate communication silos, mobility is becoming a standard feature in UCC solutions. Further, enterprises are increasing their investments in mobile communications to keep employees productive and engaged anywhere, anytime. This implies that vendors focusing on mobile voice/data services, mobile/desktop soft clients, and native mobile dialers are well positioned to capitalize on new growth opportunities – Are you equipped to address security concerns and ensure regulatory compliance amid the proliferation of mobile-first communication technologies?
- Harnessing the Potential of Soft Phones and Native Mobile Dialers: Soft phones and native mobile dialers are pivotal in enabling flexible business communications, allowing enterprises to optimize communication, bolster security, and transition from outdated wired systems. This evolution is driving telephony-focused providers to upgrade their collaboration features and find innovative ways to reinvigorate their solution portfolios – Is your team equipped to pivot investment strategies in traditional desktop and cordless phone technologies amidst the rise of soft clients?
- Combatting Competitive Intensity: The global demand for time division multiplexing (TDM) devices, Internet Protocol (IP) desktop phones, and DECT handsets is gradually declining. Consequently, providers in this maturing landscape face the pressure to differentiate themselves with a combination of strategies including cost leadership, innovative business models, vertical expertise, and collaborative partnerships, to sustain their competitive positioning and tackle tightening profit margins – How will you ensure that your organization’s growth strategies align with best practices in the global desktop and cordless phone ecosystem?
Navigating Geopolitical Chaos: To combat economic uncertainty, enterprises are cutting back on physical office spaces/new locations for telephone implementation and replacing legacy/on-premises PBX devices with hosted solutions. This is pushing vendors to capitalize on new growth opportunities like leveraging cloud PBX, addressing the needs of hybrid workers and frontliners, driving innovation in device design, and enhancing mobility features – Do you have the analytical tools and frameworks to evaluate the growth potential of emerging opportunities in UCC?
“Organizations’ preference for software-based communication and collaboration tools has severely impacted demand for desktop and cordless phones. However, there remain use cases where desktop and cordless phones are still in demand – e.g., adoption of DECT and VoWLAN/Wi-Fi devices by frontline workers, or organizations requiring a hardened endpoint for security and compliance reasons. We also see vendors’ ability to innovate and combine more features into desktop phones leading to new growth opportunities for deskbound and mobile workers.” – Christopher Pennell, Industry Principal and Growth Expert, ICT, at Frost & Sullivan.
– Christopher Pennell, Industry Principal and Growth Expert, ICT, at Frost & Sullivan. .
