The number of internet-connected devices today has far exceeded the number of Earth population. By 2025, it is predicted that there will be 75 billion devices connected to the internet. With the growing number of devices, there is also a growing demand on making the devices become more and more connected to each other. This is where CPaaS chips in. For both startups and more established business ventures, CPaaS facilitates customers and assists developers in doing their job.
The exponential rise of CPaaS implementation, investment, and value
CPaaS has been experiencing a significant growth for the past few years. Frost and Sullivan found that 81% companies have implemented CPaaS in their venture, while 67% plan to increase their investment in CPaaS. Among companies who feel that APIs strategically develop their businesses, 70% are investing in API-Based strategies. These figures contribute to the growth of CPaaS market value, which is expected to reach $10.9 billion by 2022, $17.2 billion by 2023, and $17.7 billion by 2024.
What is CPaaS?
How can CPaaS grow so quickly? What is it to businesses? To start with, CPaaS is an acronym for Communication Platform as a Service. Some call it a model, some call it a service, while some others might call it a methodology for businesses to integrate services through APIs. It is a cloud-based solution for businesses to do automations and make customized customer experiences. For example, API tools of CPaaS can integrate business messages to apps that users already use.
How does CPaaS give your product a ‘Voice’?
There are several ways CPaaS can give your product a voice. First of all, implementing CPaaS greatly assists your customers. Consequently, CPaaS helps your brand image to convey the message to users that you’re not unnecessarily complicated to deal with. Back in the days without CPaaS, customers would have to spend phone credits on long waits to reach a customer service, connect to different channels, and try to navigate through them. With CPaaS, all these technical hassles are gone.
Second of all, CPaaS is helpful for building contextual, personalized communication. Through integration, APIs can reach out to customers based on their interest, and once a customer reaches out to your business, CPaaS helps maintain the connection between the customer and your services. In addition, as CPaaS integration also helps your business understand customers better, your customer can receive more relevant promotions. In other words, it connects a business closer to its customers.
Third, CPaaS also helps your company inform your customers that their data is safe. Data security is a crucial aspect that must not be overlooked in conducting a business, especially in the digital age. According to a study, 81% of consumers would no longer use a company’s service after a security-related incident. With multiple threats around the web, two-factor authentications and multiple security measures become more crucial. CPaaS tools utilize multi-factor authentication, so that customer data can be more secure.
Having been proven to bring a lot of benefits for companies, the CPaaS market continues to grow rapidly. For developers, CPaaS allows them to focus on other things that can improve a company’s services. For your business, CPaaS provides a ‘voice’ by helping customers escape technical hassles, gain personalized experience, and trust a company’s cybersecurity measures. In the end, the ease that CPaaS brings to business conduct will allow any businesses to develop themselves further and connect to their customers closer.
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