The document summarizes key findings from BroadSoft Connections' 2015 survey of over 1,000 industry professionals. The survey found that cloud-based UCaaS solutions will rapidly gain market share over the next 5 years across small, medium, and large businesses. Respondents believed BroadSoft will achieve over 50% market share for some service providers within 3 years. The survey also indicated email will be displaced by new messaging platforms, and that 90% of service providers are leading with cloud-based UCaaS solutions.

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BroadSoft Connections Survey
25 - 28 October 2015
The ‘Future of Work’ From an Industry Leader Perspective

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BroadSoft & Connections Background
> BroadSoft Connections began in 2001 and is one
of the world’s largest cloud communications
industry conferences
o Attended by top service providers and industry
leaders - over 1,000 attendees
> BroadSoft story
o 26 of the top 30 global service providers are
customers
o Service provider customers represent over 70% of
world’s business lines, ~ 300 million
o 12 million licenses shipped to date
o Frost and Sullivan estimates 41% market share1
> Connections 2016: Nov 13 - 16, San Antonio, Texas
1. Frost & Sullivan, 2015

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Connections 2015: Define the Future
CEO and co-founder Mike Tessler, CMO Taher
Behbehani, and CTO and co-founder Scott
Hoffpauir kicked off the event and announced:
> BroadSoft’s “best kept secret” era is over – new focus on
brand awareness and cloud communications leadership
> Service providers remain core sales channel – additional
go-to-market support to accelerate cloud transformation
> Shift in innovation and support beyond technical teams
to business buyers and end-user experiences
> New future of work vision – “Project Tempo” – contextual
team collaboration with deep application integration

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Connections 2015: Event Overview
* How our attendees describe Connections
The Stats
1,123 registered attendees
540 service provider attendees
22 customers interested in Project Tempo Beta
100% would recommend Connections to a colleague
3,297 social media interactions
4.9 million social impressions
Fantastic* Informative Productive Learning Future

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> New competitors are challenging service
providers
o Microsoft enters the service provider business
o Others are nibbling and dabbling in the UC
market … Google, Facebook, etc.
> Core businesses are under pressure
o Telephony fixed-line business rapidly declining
o Cellular/broadband growth slowing, margin
pressure
o Churn rates require aggressive management
Threats
Drop in
cellular
ARPU1
4%
1. CTIA: U.S. mobile data traffic increased 26% in 2014, but
growth rate falls sharply from previous year
CTIA Annual State of the Industry Report 2015

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Opportunities
> Millennials see the cloud as a
smart choice
o New B2C messaging-type and
other applications moving into
the B2B business environment
> Large and growing market for
service providers
o Excellent enterprise value
proposition reduces
complexity/costs and improves
mobility/productivity
o 28.3%1 CAGR through 2018 per
Infonetics

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Connections 2015 Survey
Cloud UC Will Rapidly Transform Enterprise Communications and
Opens Up New Opportunities for Service Providers
> 6x increases in market share across all segments1 (see
next page)
> 94% want integrated cloud/premise UCaaS analyst
reports
> 94% say cloud/hosted UCaaS will take a top five market
share position
> 90% are leading with hosted/UCaaS solutions, only 10%
premise
> 82% argue email will be disrupted by team collaboration
platforms
> Over one third of SMB will be 100% mobile UCaaS1
> 28% say BroadSoft will achieve over 50% of their
installed base2 1. Over five years.
2. Over three years.

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Bigger Than We Imagined!
Cloud UCaaS Becomes a Significant Market Force in All Customer Segments – Including
Significant Gains in the Medium and Large Segments
1. MZA
BroadSoft Estimates today – Light colorSurvey Response Projections – Dark color
Aggregated survey estimates – new lines shipped

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THE RESULTS
Future of Work Survey

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Small Businesses Prefer Cloud
Question 1 - Small business (1 – 99 employees):
In five years (2020), what percentage of hosted PBX/
UCaaS market share do you believe cloud solutions will
capture?

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Midsized Businesses Embrace Cloud
Question 2 - Medium business (100 – 999 employees):
In five years (2020), what percentage of hosted PBX/
UCaaS market share do you believe cloud solutions will
capture?

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Cloud Adoption Will Move “Up Market”
Question 3 - Large business (1,000 +):
In five years (2020), what percentage of hosted PBX/
UCaaS market share do you believe cloud solutions will
capture?

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Small Businesses Will Cut the Cord!
Question 4 - Small business (1 – 99):
In five years (2020), what percentage will use 100%
mobile/cellular-only Hosted PBX/UCaaS cloud solutions?
Small Business
Goes Mobile
A significant number of
SMBs will opt for 100%
cellular business unified
communications solutions,
eliminating the need for
premise-PBXs

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UC and Mobility Will Become Synonymous
Question 5:
In five years (2020), what proportion of UC interactions
will occur on mobile devices?

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The Cloud is Changing How They Sell
Question 6:
What is your strategic, lead, and preferred technology
solution strategy?
90% of service
providers are
leading with hosted
PBX/UCaaS
solutions

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Service Providers are Bullish on the Cloud
Question 7:
Today’s top UCC/VoIP premise market-share leaders (in
order) are Cisco, Avaya, NEC, Panasonic, and Mitel.
In your opinion, what market position(s) will cloud
vendors like BroadSoft attain by 2020?
Survey respondents
believe that hosted
PBX/UCaaS solutions
will displace premise-
based vendors as
market-share leaders

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We Want One Market View!
Question 8:
Market research currently reports PBX and cloud data
separately. Would you like to see an integrated view of
the market that combines PBX and cloud data to
highlight the transition to cloud? Combining PBX and
Cloud Data:
94% would like to see an
integrated view and see
enterprise communications as
one market

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Email – Really!?!?
Question 9:
In your opinion, will email solutions be disrupted by a
new generation of users and by enterprise integrated
messaging, team collaboration and communication
search tools, e.g. HipChat, Glip, Slack, etc.?
82% believe new
messaging and team
collaboration tools
will diminish email’s
role as the primary
messaging tool

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Cloud Rules!
Question 10:
What approach do you consider your biggest
strategic threat?
Service providers
believe that emerging
cloud communications
solutions and vendors
are their
biggest competitive
threats

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Banking on BroadSoft!
Question 11:
In three years’ time, what percentage of your installed
business base will BroadSoft Hosted PBX/UCC services
represent (users)?
BroadSoft will
power significant
portions of their
installed base’s
hosted PBX/UCaaS
services

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Find out more …
> BroadSoft Connections 2015 website
> BroadSoft recent press releases
> Project Tempo
> BroadSoft recent blogs

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Are you ready to make the most of emerging
communication trends?
BroadSoft’s next-generation cloud communication and collaboration solutions
unleash benefits that can ripple across the value chain to help Communication Service
Providers capture market share, reduce churn and build their bottom line.
Interested in learning more?
Contact us at:
info@BroadSoft.com

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ADDENDUM

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Connections 2015 Survey: Respondents
~11% of 1,123 Survey Respondents
74%
15%
11%
Service Provider
Sponsor
Other (enterprises,
resellers etc.)
25%
9%
7%
59%
EMEA
APAC
CALA
NA
8%
20%
9%
7%28%
12%
16%
C-Level
Director
Vice President
Department Head
Manager
Engineer
Other

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Connections 2015: Select Attendees

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Connections 2015: Sponsors
Silver
Event
Platinum Plus
Platinum
Gold