Survey of top global service providers and industry leaders forecasts rapid shift from premise to cloud UC and extensive mobility across all business segments; team messaging and collaboration apps poised to disrupt email

GAITHERSBURG, MD – January 12, 2016 – Cloud Unified Communications (UCaaS/Hosted PBX) market penetration for new lines shipped will increase nearly 6x to 41% over the next five years, according to a new BroadSoft, Inc. (NASDAQ: BSFT) survey of global telecom service providers and industry leaders. The survey points to a rapid shift away from traditional premise systems across all market segments. By 2020, the Cloud UC market penetration is expected to grow 3x in the large enterprise segment, 7x in the midmarket segment, and almost 5x in the small business segment, according to survey results.

BroadSoft conducted the survey of 129 global service provider and industry leader respondents in the fourth quarter of 2015 at BroadSoft Connections, BroadSoft’s annual users’ conference that drew over 1,000 attendees. The survey examined global perspectives on business adoption of cloud and mobile UC solutions, the evolving competitive landscape, and the extent to which emerging, over-the-top (OTT) team messaging and collaboration applications are disrupting current business productivity tools such as email.

Key Survey Findings:

Shift from premise to cloud UC fully underway across all market segments

Respondents expect UCaaS/Hosted PBX market penetration to grow by a factor of almost 6x across enterprise, midmarket and SMB in the next five years. By 2020, respondents believe that UCaaS/Hosted PBX market share will increase to: 

  • Small business segment (<100 employees): 48% (10% today)
  • Midmarket business segment (100 – 999 employees): 37% (5% today)
  • Large enterprise segment (1,000+ employees): 20% (6% today)
  • Total market: 41% (7% today) 

Enterprises are cutting the cord - UC and mobility become synonymous

According to the survey, in addition to the shift from premise to cloud, Unified Communications will become increasingly mobile: 42% of respondents believe that more than half of UC interactions for businesses of all sizes will occur via mobile devices by 2020, while one-third of small businesses will opt for mobile-only UCaaS/Hosted PBX solutions, eliminating their need for desk phones. 

Email on the way out – unlocking new opportunities for service provider revenue growth

82% of survey respondents expect OTT integrated messaging and collaboration applications to disrupt the business email market, while only 18% feel email will remain the primary business-messaging tool. BroadSoft believes that these new OTT solutions, when deeply integrated with UC and business applications, will offer service providers a differentiated and compelling value proposition, and access to a large and growing market opportunity with attractive margins. 

“Enterprise UCaaS is proving disruptive due to its superior value proposition – reduced complexity, lower total cost of ownership and greater productivity and mobility for the increasingly millennial and distributed workforce,” said Taher Behbehani, chief marketing officer, BroadSoft. “Importantly, this opportunity is not lost on service providers and industry leaders as 90% of survey respondents rate UCaaS/Hosted PBX as their preferred technology solution strategy, while only 10% are leading sales efforts with premise PBX.”  

BroadSoft is a global unified communication software as a service (UCaaS) provider. Over 700 customers in more than 75 countries are delivering services using its software, and BroadSoft has surpassed 12 million cloud unified communications lines deployed globally. According to Frost and Sullivan, in 2015 BroadSoft was the market leader for UCaaS, with a 41% market share.

About BroadSoft:

BroadSoft is the leading provider of cloud software and services that enable mobile, fixed-line and cable service providers to offer Unified Communications over their Internet Protocol networks. The Company’s core communications platform enables the delivery of a range of enterprise and consumer calling, messaging and collaboration communication services, including private branch exchanges, video calling, text messaging and converged mobile and fixed-line services. For additional information, visit http://www.broadsoft.com.

Forward-Looking Statements:

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by their use of terms and phrases such as “will,” “can” and ”enhance” and other similar terms and phrases and include, among others, statements regarding the benefits of the compatibility of Microsoft’s Office 365 with BroadSoft’s BroadWorks and BroadCloud platforms, and UC-One service offering. The outcome of the events described in these forward-looking statements is subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated by these forward-looking statements, including, but not limited to, the financial and other benefits to BroadSoft and its service provider customers resulting from the compatibility of Microsoft’s Office 365 software with BroadSoft’s products and service offerings, as well as those factors contained in the “Risk Factors” section of BroadSoft’s Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission, or SEC, on February 25, 2015, and in BroadSoft’s other filings with the SEC. All information in this release is as of December 3, 2015. Except as required by law, BroadSoft undertakes no obligation to update publicly any forward-looking statement made herein for any reason to conform the statement to actual results or changes in its expectations.

Media Contacts:

Americas
Brian Lustig, Bluetext PR for BroadSoft US
+1 301.775.6203
brian@bluetext.com

Europe
Andy Crisp / Jon Bawden / Kate Anderson
Cohesive for BroadSoft UK
+44 (0) 1291 626200
broadsoft@wearecohesive.com

APAC
Terry Alberstein
Navigate Communication
+61 (0) 458-484-921
terry@navigatecommunication.com.au

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About BroadSoft:

BroadSoft is the technology innovator in cloud communications, collaboration, and contact center solutions for businesses and service providers across 80 countries. We are the market share leader for cloud unified communications with an open, mobile and secure platform trusted by 25 of the world’s top 30 service providers by revenue. Our BroadSoft Business application suite empowers users and teams to share ideas and work simply to achieve breakthrough performance.

Investor Relations
Chris Martin

+1-561-404-2130

cmartin@broadsoft.com

Media Contacts
Brian Lustig

Bluetext PR

+1-301-775-6203

brian@bluetext.com

Nioabh Levestam

BroadSoft

+44 7919 605660

nlevestam@broadsoft.com