"Are we there yet? Telecom Services' slow migration to IP." - Most of the marketing noise is utter bs - Basic landscape and sizing - CPaaS history, current status, and what matters - UCaaS history, current status, and what matters - Its all about the services - solving the core business communications problem (business phone systems), and locking that service in through solving specific business problems (programmability).

1. Are we there yet?

2. I want to tell you a
story…

3. But Max never said
that

4. Most ‘70s / ’80s TV was awful
But what choice did we have?

5. It did get better by the ‘90s
Thanks to competition & choice.

6. I want to tell you a
story…

7. Its about a young-ish engineer working
at BT on broadband access.
Trying to change an
incumbent’s intransigence.

8. FTTH
Business
Case
2-3k per
home
passed!
NO WAY
DSL
Business
Case
But were
selling E1
lines for
10k
today!
And
anyway, is
DSL
future
proof?
Deer in
Headlights
Cycle

9. Let’s remember how low the
UK was in VoIP
That’s 1%, Eastern Europe was doing better

10. Thanks to DSL, competition &
choice, things began to improve

11. Thanks to broadband, competition & choice,
things also began to get more complex

12. Though people seemed happy to pay more
for less thanks to bundles / buckets

13. In 2018 North American SIP Trunking finally
exceeded TDM/Legacy VoIP
2015 2016 2017 2018 2019 2020
Legacy VoIP 12% 10% 8% 6% 4% 2%
TDM 55% 50% 45% 39% 33% 28%
SIP 33% 40% 47% 55% 63% 70%
0%
20%
40%
60%
80%
100%
2015 2016 2017 2018 2019 2020 CAGR
Total # trunks (M) 37.5 36.7 36.4 35.8 35.5 35.3 -1%
SIP Trunks (M) 12.4 14.7 17.1 19.7 22.4 24.7 15%
SIP Trunk
Revenue ($M) 3400 4000 4500 4900 5200 5400 10%
Average Revenue
per trunk ($) 275 272 263 249 232 219 -4%

14. VoIP is the horse to bet on!

16. Who Pays the Analysts?

17. Industry Noise is Dominated by a Few Companies,
And Most of it is Utter Bollocks
DIGITAL TRANSFORMATION
5G
US LARGE ENTERPRISE NEEDS
CLOUD
API ECONOMY
AI
RCS
UCAAS & CCAAS & CPAAS
MITEL & AVAYA
2+1.8 = 5
DIGITAL BLOODY EVERYTHING
PAY TO PLAY AWARDS
BIASED
QUADRANTS
FASHIONABLE THEORIES
INFLATED EXPECTATIONS
FALSE WARS: MESSAGING
BABS-ARTISTS

18. We’ve got a ‘Bit’ of an Unlevel Playing Field!

19. However, Numbers are our Friends
in Understanding the Playing Field

20. Public CPaaS
Communication Enabling Software and Platforms /
Open Source Projects
Business
Messaging
In-App Comms
Enterprise Channel (Gamma, WWT, Verizon, AT&T, etc)
Customer Communications. Contact center,
messaging, trust, ..
Programmable Telecoms/Comms Landscape
Automation Technologies (bots, speech rec, analytics, workforce management, knowledge
management, conversational interfaces, marketing automation)
Employee Communications. Unified
Comms, business telephony, phone
systems, messaging, collaboration

21. Open Source Telecom Projects
Enterprise Communications Democratized

22. Public CPaaS
– those that identify as + do more than SMS
© Alan Quayle 2019

23. Public CPaaS 2018 Revenue2019 Growth2020 Growth2021 Growth2022 Growth SIP Trunking Core API / Aggregation / Routing (voice and messaging) / minutes and messages / IVR / VASBusiness Messaging / Marketing2FA / Identity / Authenitcation / Fraud ManagementIoT CCaaS (Customer Comms / Collab - voice & video / chat)UCaaS (Employee Comms / Collab / messagEmployees Simple Descrip
2600Hz / Kazoo 10 30% 30% 25% 25% 10% 70% 20% 40 Refocused on C
46elks 8 25% 25% 20% 20% 100% 8 Swedish CPaaS
Aculab 25 25% 25% 20% 20% 40% 20% 10% 15% 15% 80 Long establishe
AeriaLink 5 45% 45% 40% 40% 60% 40% 20 Landline messa
Amazon 180 75% 70% 65% 60% 50% 20% 20% 10% 145 Simple Notifict
Apeiron (bought 2019 Konatel) 2 40% 40% 35% 35% 100% 3 Couple of years
Apifonica (Dzinga) 10 35% 35% 35% 35% 15% 65% 20% 25 European CPaaS
aql 20 35% 35% 35% 35% 60% 20% 10% 10% 80 Long establishe
babl.biz 10 35% 35% 35% 35% 20% 60% 20% 20 UK-based CPaa
Bandwidth 165 30% 30% 25% 25% 20% 75% 5% 400 NAR-focused vo
BrightLink 20 40% 40% 35% 35% 10% 20% 35% 35% 30 Cloud based PB
Callfire 25 40% 40% 35% 35% 100% 90 Voice/SMS cust
Callr 5 35% 35% 35% 35% 15% 75% 10% 8 Paris-based CPa
Cequens 45 35% 35% 35% 35% 10% 30% 45% 5% 5% 5% 125 MEA focus
Cloudonix 1 100% 80% 70% 60% 100% Cloud based As
CM 25 20% 20% 15% 15% 40% 50% 10% 100 Dutch Business
CYDNE 15 35% 35% 30% 30% 65% 25% 10% 80 Notification ser
Exotel 15 35% 35% 35% 35% 100% 120 India based CPa
Flowroute (West) 15 35% 35% 35% 30% 40% 60% 50 NAR-focused SI
FoneDynamics 5 25% 25% 25% 25% 100% 20 Australian CPaa
hoiio 25 65% 65% 60% 55% 20% 60% 20% 45 Singapore base
Infobip 400 10% 10% 10% 10% 25% 65% 10% 1800 Original A2P SM
Intelepeer 170 25% 25% 25% 25% 20% 30% 15% 10% 15% 10% 240 CPaaS products
Kaleyra 100 20% 20% 20% 20% 10% 40% 40% 10% 200 Roll up of busin
Messagebird 95 40% 40% 35% 35% 15% 60% 15% 10% 180 Dutch aggregat
MITTO 30 45% 45% 45% 45% 90% 10% 50 Swiss based B2
Mobtexting 10 25% 25% 25% 25% 40% 50% 10% 50 Indian business
NTH 5 25% 25% 25% 25% 60% 40% 25 GUI based CPaa
Plivo 32 40% 40% 40% 40% 15% 65% 10% 180 Voice/SMS API
PlumVoice 20 30% 30% 30% 30% 70% 20% 10% 60 Cloud IVR expan
RingCaptcha 2 50% 50% 50% 50% 100% 4 Voice/SMS auth
RouteMobile 80 30% 30% 30% 30% 5% 25% 40% 10% 10% 10% 400 Indian business
SAP 500 0% 0% 0% 0% 30% 60% 10% 1000 Legacy Sybase A
Signalwire 10 100% 90% 80% 70% 100% 25 FreeSwitch's CP
Simwood 10 50% 50% 50% 50% 20% 70% 10% 15 ITSP Enabler gr
Sinch (CLX) 450 15% 15% 15% 15% 45% 40% 10% 5% 400 Swedish roll-up
Syniverse 600 0% 0% 0% 0% 80% 20% 1400 Legacy A2P agg
Bottom-up Build of Market Size
Yes, I know these growth figures are conservative compared to your business plan, but reality!

24. CPaaS Market Sizing
0
2000
4000
6000
8000
10000
12000
14000
16000
2018 2019 2020 2021 2022
Public CPaaS Revenues
SIP Trunking Core API Business Messaging
Authenitcation IoT CCaaS
UCaaS Total
IDC Market size
estimate is $2B in
2017, $11B in 2022

25. Employee Communications
UC, business telephony, phone systems Messaging and collaboration
This is not complete, limited by who I know, please let me know what I’m missing, thx.
There’s a load more providers, this is just a sample.

26. 2018 revenue either
published or guestimate
Growth either based on
published #s or
guestimate
%aaS / hosted
guestimate
Employees based on
published numbers or
guestimate
Employee Communications % aaS (includes hosted)
UC / Enterprise Telephony 2018 Revenue2019 Growth2020 Growth2021 Growth2022 Growth
3CX 22 25% 25% 25% 25% 10%
4Com 20 20% 20% 15% 15% 15%
8X8 280 20% 20% 20% 20% 100%
Aircall 18 55% 50% 45% 40% 100%
ALU Enterprise / Sipwise 380 0% 0% 0% 0% 10%
Amazon Chime 25 45% 45% 45% 45% 100%
AMP Telecom 1 20% 20% 20% 20% 100%
Audiocodes 50 10% 10% 10% 10% 20%
Avaya 1200 -10% -10% -10% -10% 5%
Birchills Telecom 1 10% 10% 10% 10% 100%
Blueface / Star2Star 260 20% 20% 20% 20% 15%
Broadview / Windstream Enterprise 220 0% 0% 0% 0% 10%
Broadvoice 45 15% 15% 15% 15% 50%
Centile (part of Within Reach) 15 20% 20% 20% 20% 100%
Cisco 800 5% 5% 5% 5% 10%
Crexendo 15 10% 10% 10% 10% 80%
Dialpad 50 40% 40% 40% 40% 100%
Digium 30 15% 15% 15% 15% 50%
Dzinga 5 50% 50% 50% 50% 100%
EvolveIP 55 25% 25% 25% 25% 80%
Flat Planet Phone 1 15% 15% 15% 15% 100%
Fuze 125 25% 25% 25% 25% 100%
Grasshopper (bought by Citrix/GoTo) 30 15% 15% 15% 15% 100%
Huawei 650 20% 20% 20% 20% 5%
Intelepeer 180 20% 20% 15% 15% 80%
Intermedia 125 10% 10% 10% 10% 50%
Intulse 3 25% 25% 25% 25% 100%
ipcortex (bought by Aerial Direct) inc Aerial Direct #s18 18% 18% 18% 18% 50%
Jive Communications (bought by Citrix/GoTo)80 35% 35% 35% 35% 100%
Magicjack (for business) 30 18% 18% 18% 18% 100%
Megapath 32 15% 15% 15% 15% 35%
Microsoft 700 20% 20% 20% 20% 20%
MightyCall 20 15% 15% 15% 15% 100%
Mission Labs (CircleLoop) 1 200% 150% 100% 80% 100%
Mitel 300 10% 10% 10% 10% 20%
Natterbox 15 35% 35% 35% 35% 100%
NEC 230 5% 5% 5% 5% 5%
net2phone 10 5% 5% 5% 5% 100%
Nextiva 140 20% 20% 20% 20% 100%
Univoip (OfficeConnect) 25 10% 10% 10% 10% 100%
onsip 13 15% 15% 15% 15% 100%
ooma 55 18% 18% 18% 18% 100%

27. UC Market Sizing
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
2018 2019 2020 2021 2022
Enterprise Voice / UC
Total Large Small
• But wait a minute, UC market is $33B in 2021!
– Telcos, mobile PBX, list is not complete (especially smaller players), doesn’t include channel margin
– At least 50% of the UC market is up for grabs from the telcos!
• Of small players approx 80% use open source telecom software. Average age of
companies is 6.5 years old.
• For small players 50% of revenue is from cloud/hosted services
• For large players 30% is from cloud/hosted because legacy revenues tend to be on-prem

28. • RingCentral, Microsoft, Cisco, Zoom, 8X8 are not destined to
own UC
– Unless you’re a large US corporation with loads-a-money
– Be opportunistic with these ecosystems, store brand and ‘named’
brand offers
• Most businesses do not want UC, it’s called a bloody phone
system
• Most businesses do not have an IT department, hence a local
person they can trust that makes it easy for them matters
• Most people are frugal, saving money >> long lists of
features
Beware False Narratives
Ignore the Noise, focus on your customers

29. Who’s Your Customer?
All Your Businesses
Survive Because of
Diversity

30. • Open source telecom software underlies the majority
of the Programmable Communications Market ($100B+
revenue)
– 82% of web app servers are open source – the same be true for
Programmable Telecoms (for small / medium players)
• Open source community is the best defense for smaller
providers
– Raising all boats in the open source tide
– Employee Communications for small players $4B (2018)
growing to $8B (2022)
– Likely $10B up for grabs in the coming decade by focusing on
the customer: trust, local, easy, price
Beware False Narratives
Ignore the Noise, open source works at scale

31. Open Source Opportunity Cost
Time spent
earning $$$
on your core
business
Time spent
having fun
updating to the
latest release
to save $$
Over time
Costs Saved (can be) <
Revenue Forgone
Because its not core to
your business

32. • Everyone’s talking CPaaS, so I need a CPaaS offer!
– Twilio has won, Google / AWS define developer expectations
– HOWEVER
– Most businesses want solutions to business problems
• Faster, cheaper, better
– Which means most customers want services not APIs
• They need to alert customers, not integrate a SMS API – research, define
the service, hire a developer, project, time, money, support
– Most channels can’t use an API, their customers can’t use an API.
• Why focus on APIs?
• You need a partner that does the API stuff, so you can focus on
your customer with appropriate services
Beware False Narratives
Ignore the Noise, focus on the services

33. Its all about the
services

34. No, seriously. Stop
focusing on the
tech and Analyst BS
Its all about the
services

35. OK, but which
services?
• Great value phone system backed by unmatched local
support
• Programmable (configuration or APIs) to solve your
customers’ specific problems
Ignore the Noise, focus on the specific
services your customers need

36. Are we there yet?
No, but the path is
getting clearer

37. Just don’t go
too local