London: Cavell’s recent research shows the market has grown by 25.8% in the last year to reach a total of 8,628,953 Cloud Communications users across the European countries that are covered by the analyst firm. Most of this growth is from established markets such as the UK and Netherlands but overall, the market is at distinct stages of Cloud Communication adoption. Countries such as the UK, Netherlands, Germany and France lead the market in terms of numbers of users with each country having over a million users; between them they have 6,616,074 seats of the total users in the market (80% of total users).
As businesses throughout Europe increasingly embrace the move to IP, the incumbents are suffering despite their attempts to change to meet changing market conditions. According to their 2016 annual reports, key players in the European telecommunications market KPN, Swisscom, and Proximus have been experiencing a significant decline in their fixed business voice revenues, mainly caused by the rise of Cloud Communications, with KPN seeing an 18% loss in just 12 months, Swisscom 11% and Proximus 8%.
“Change is here, it is happening now, it is no longer the speculation of analysts, it is the reality we all have to live with. We are seeing some service providers have a worrying ostrich-like behaviour, while our forecast shows continuing, robust growth across all of the markets that we cover, underlining they should be increasingly concerned about cloud communications and potential revenue loss”, stated Matthew Townend, Research & Consulting Director of Cavell Group.