Click image to view it in full size

Frost & Sullivan defines Communications Platforms as a Service (CPaaS) as any cloud-based platform that enables developers to programmatically embed voice, video, chat, and messaging services within their business or consumer applications. In nearly all cases, the embedded communications and collaboration services leveraged through a CPaaS are a feature of the larger application and are rarely the primary focus of the application. For example, consumer-focused ride-sharing applications require a means for a driver and passenger to connect via SMS or a voice call. CPaaS can be leveraged to deliver the communications features of the application, enabling the developers to focus on the mission-critical aspects.

CPaaS solutions represent a significant departure from the way businesses of any size have become accustomed to purchasing and deploying communications. Their value proposition lies in providing a powerful toolset to make business communications applications richer and more tightly integrated within business workflows. CPaaS provides additional capabilities alongside a business’s existing communications infrastructure. Like other cloud-based services, most CPaaS solutions offer businesses a compelling operating expense (OpEx) alternative to costly capital expenditures (CapEx) to deploy the appropriate communications and network infrastructure needed to securely support application programming interface (API)-driven voice, video, and messaging services. Also important, cloud-based CPaaS offerings are priced at published per-API call or per-minute rates, enabling businesses to pay for the exact amount of services they consume. This is a particularly compelling value proposition for organizations with varying levels of demand or seasonal spikes in business activity. The inherent scalability of cloud architectures also benefits CPaaS, enabling businesses to consume as much or as little of a provider’s API-directed services as needed by their application or work process.

The global CPaaS market is in a high growth stage, with many of the contenders in the market reporting high annual double-digit growth. The incredible growth trajectory is driven by a steady stream of innovative new features and capabilities being delivered by CPaaS providers, the addition of new providers in the market, and increased interest and adoption of API-driven communications services by customers of all sizes.