UC versus UCaaS – an unlikely winner?

Unified Communications as a Service, or UCaaS, has gained momentum in recent years as the pandemic has accelerated the migration to the cloud for corporate communications. The effects of hybrid and remote work have led to an increase in demand, giving companies the opportunity to instantly offer these services to their employees, wherever they are.

But UCaaS is not always the right choice for all organizations. According to a study conducted by TechAisle, companies continue to rely on customer-hosted, on-premise or hybrid solutions to meet their communications needs. The study also indicates that 88% of French companies still use on-premises solutions, while less than half (37%) evaluate the possibility of transferring their on-site communications to the cloud.

These data confirm our belief that there is no universal approach. Organizations must implement the solutions that best meet their needs, regardless of the deployment infrastructure. With unified on-site communications that will continue, it is essential to understand beforehand what are the advantages and disadvantages of the different options to make the choice of sustainability.

Flexible unified communications solutions

Hybrid work is no longer a matter of choice for many organizations, and 72% of French employees recognize that better communication and collaboration tools help them to better accomplish their tasks, wherever they are.

But the criterion of flexibility can also, for some companies, be synonymous with mixed infrastructures mixing solutions hosted on site, in the public cloud, in the private cloud, etc. A single approach is no longer viable for most companies, and unified communications solutions on site, including in private cloud, often remain the preferred choice to comply with data security policies.

There is a strong case for unified communications solutions on premises and in the private cloud, as they offer a lower total cost of ownership, greater flexibility and control, better ability to integrate communications and workflows, as well as greater reliability.

In addition, the size of a company is no longer a determining factor in decisions related to the unified communications architecture. According to Metrigy, it is now the business sector that is decisive, with technology companies, the healthcare sector, hospitality, industry, retail and education being the biggest followers of on-site platforms.

Other factors may also motivate the use of on-premises and private cloud platforms, in particular the need for complex integrations with other business applications in order to optimize processes in the company.

Unified communications, an investment opportunity

To achieve the creation of a quality hybrid work environment, unified communications must be placed at the heart of the company’s modernization plans. According to the study, the pandemic has forced 28% of French companies to accelerate their modernization plans, but despite this, organizations are still not investing enough to support the adoption of new work environments. Only 11% of French decision-makers indicate that they have a “hybrid first” mindset when making organizational and operational decisions, and 42% of French organizations only have “basic” hybrid working capabilities in terms of technology and tools allowing effective collaboration between teleworkers and on-site employees.

This data indicates that companies need to invest more in unified communications solutions. To achieve this, they must clearly identify the areas of investment to be prioritized over the long term, and evaluate the cost implications of the different deployment options. On-premise solutions are about 21% less expensive to operate than UCaaS solutions, according to a study conducted by the research firm Metrigy. This is explained by the acquisition costs realized, the lower maintenance costs and, in some cases, the need for an initial investment in new terminals and other equipment, as well as in management tools and staff training, to accompany a migration to UCaaS.

Managers must choose the purchase option according to their IT budget and the needs of their company. The data from the study also show that, for French companies, ease of purchase is an important criterion for investing in modern unified communications solutions. With regard specifically to unified on-site communications, 65% of French organizations prefer to buy a solution with an annual contract, while 35% prefer monthly services with an annual contract, for more flexibility. Unified communications providers offering flexible purchasing models, including subscription-based services, are therefore in the best position to attract companies wishing to modernize.

Although UCaaS offers significant advantages and benefits for certain market segments (and in particular VSES/SMEs), it is not the appropriate option for all organizations. A communication platform on site or in a private cloud will be the ideal choice for companies in need of personalized and integrated communications solutions, benefiting from a high level of control and security and flexible sizing. With potentially a lower total cost of ownership than UCaaS.

There is no one–size-fits-all approach, and each client must be supported, regardless of the path they take – on-premises solutions, switching to a hybrid solution or migrating to the cloud, public or private. More than choosing a communications solution, it is essential for each company to make the choice of flexibility and to benefit from personalized advice throughout the life cycle of their corporate communications solutions. By choosing a deployment option or a combination of options that best meet their needs, organizations gain long-term assets and will be able to get the most out of their investments in unified communications.