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Fear of stagflation or recession is likely to dampen the momentum the industry has garnered in the past couple of years. Strong recognition of UCaaS benefits—including improved business continuity and enhanced remote/hybrid workforce productivity—is likely to be offset by budget tightening, delayed investments, and technology investment priorities re-evaluation.

The gap—in terms of growth rates and market share—between the winners and laggards among UCaaS providers is widening. This is compelling market participants to urgently seek greater differentiation and identify new growth opportunities. Providers with broader solutions portfolios (e.g., broadband, mobile services, SD WAN, and managed security) and those offering freemium and/or mobile-ready cloud collaboration services are likely to see pull-through on UCaaS sales.