The Rise of Cloud Telephony Amidst the COVID Pandemic

2020 has been nothing short of a Twilight Zone episode. The COVID-19 pandemic has significantly rearranged the workings of the world and its industries. People’s professional lives have been pushed back into their homes as ‘work from home’ becomes the new normal. However, the requirement for remote functioning brought on a need for new software—something that could allow employees to perform their duties remotely in a cost-efficient manner.

Enter Cloud Solutions

In the past few years, the transition to the cloud has been gradually increasing due to its various benefits. With the lockdown and restrictions this year, this transition has been given a significant boost. Companies have consistently considered cloud telephony to fulfil their customer service requirements. There are several reports, studies and news portals vouching for the same.

However, before we delve into the numbers, let’s discuss why there may be such a heavy demand for cloud telephony.

Benefits of Adopting Cloud Telephony for your Business

Cloud telephony has been a revolutionary invention in the telecom service. It has introduced a bundle of features that streamlined business operations, something that was almost impossible to do before. Some of its benefits include:

(1) Cost-efficient: With no need for hardware or data silos, this technology can be easily accepted by small and medium-sized enterprises.

(2) Remote working: Typically, cloud telephony is not just limited to devices. This eases remote working for employees as long as they own a smartphone and Internet service.

(3) Easy installation: The transition to the cloud is an extremely simple process. Once installed, you could take control of the new system in no time. This makes it an easy choice for companies, considering the suddenness of the lockdown.

(4) Customer experience: With IVR, toll-free numbers, call recording and analysis services, cloud telephony promises an enhanced customer experience. The wait times and costs are lower, first point resolution is encouraged, and experience is more personalised overall.

(5) Flexible scaling: Most cloud telephony providers employ a pay-as-you-go model. Because of this, you can scale up or down on your services as per your project requirements.

(6) Consistently updated: Cloud technology, in general, can be updated and optimised constantly. Providers can instantly update your systems once you have chosen cloud telephony.

The pandemic has served as a catalyst for organisations to switch to newer technologies (like cloud telephony) to keep their operations running smoothly. Most importantly, there has been a boost in video conferencing apps, online retail sites, virtual private networks (VPN), and cloud telephony. Notice the commonality? All these endeavours improve life in isolation and by extension, in quarantine.

According to Virtualisation and Cloud Review, Flexera 2020 State of the Cloud Report notes the increased usage of cloud services in 2020. 750 global decision-makers were consulted about their thoughts on the public, private and multi-cloud market. 

These respondents were asked about the change in their planned use of cloud services because of the COVID-19 pandemic; 31% expressed that there has been a slight increase, while 26% attest to a significant rise in the usage. 57%, thus, agree that there has been some form of an increase in cloud computing ever since the introduction of COVID-19.

This study was conducted in the first quarter of the year and explores the early transitions in the pandemic. Even as early as then, businesses were seen spending more towards cloud solutions as a way to facilitate their remote working requirements. In the first quarter itself, it showed that organisations spent 23% over their original budget for their cloud services.

The study also predicts that over the next 12 months from the first quarter, organisational spend on will increase by 47%.

Ever since the introduction and advancement of coronavirus, one cannot deny that there have been lifestyle changes but, one must also identify the change in the way people think. The fear of crowds and large gatherings has taken strong roots and virtual reality has become a more comfortable option.

Remote working has been the major driver in the adoption of the cloud. Earlier this year, some of the biggest companies in the world—Facebook, Google, Twitter—announced that their employees are granted a work from home status till either the end of the year or indefinitely.

A revolutionary step, it changes the entire concept of the organisations’ workings. According to an article by Virtualisation and Cloud Review, this has greatly helped in migration to the cloud. While people are enjoying all the benefits of cloud computing, telephony has been the backbone of customer service. It helps with quicker responses and smooth communication, both of which are absolutely vital in the year of event cancellations and delivery restrictions.

An estimation by Market Study Report says that between 2020 and 2025, the global cloud telephony market is expected to grow with a CAGR (Compound Annual Growth Rate) of 9.3% and is expected to reach from USD 13,160 million in 2019 to USD 18,810 million in 2025. 

Statista presents a report by Gartner inc, saying that the global cloud telephony market will grow by 9% in the year 2020 and leap by another 17.8 % in 2021. While the numbers may be slightly varied, all the reports suggest that the cloud telephony market is thriving further. A part of this credit is definitely to be given to the coronavirus pandemic.

The Bottom Line

The coronavirus pandemic has been a life-altering event for everyone in the 21st century. It has affected both our personal and professional lives. The corporate world has had to make several changes in their functioning to accommodate remote working.

Cloud services have been increasingly adopted by companies as it is cost-efficient, easy to install but also because it enables remote working. It enables seamless conversation between the consumer and the company. Agents can set up a home office as long as they have a device and an internet connection.

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Written by Vanita Arora

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