Unifying communications in the cloud

Gartner Australasia Pty Ltd

By Bjarne Munch, Principal Analyst, Gartner
Wednesday, 21 January, 2015


Unifying communications in the cloud

There are many cloud-based unified communications solutions available, and each has its pros and cons.

Unified communications (UC) is the integration of multiple communication streams, such as telephony, instant messaging (IM), unified messaging and conferencing (audio, video and web) traditionally delivered through premises-based technology.

But recently, UC vendors have been augmenting their product portfolios with cloud delivery capabilities, referred to as unified communications as a service (UCaaS). While UC deployments continue to be driven by business interest in individual and workgroup productivity, as well as support for remote working and customer service, enterprises are often left wondering whether they should source UC from an on-premises core platform vendor, a UC cloud provider or a combination of both.

While the majority of UC solutions are still installed on-premises, hosted or facility-managed services are increasing. IT leaders who are contemplating a cloud-based solution should compare private cloud UC, hybrid UC and public cloud UC to determine which solution is best for their organisation.

While retaining many of the attributes of public cloud communications, private cloud has some distinct differences:

Service-based: The service is provided either by the organisation’s IT department or by an external managed service provider.

Scalable and elastic: Private cloud architecture takes advantage of virtualisation to build scale and flexibility for all user requirements.

Non-shared: The service supports multiple departments of a single organisation, but not any external organisations.

Metered by use: Organisations consume communications as a utility, based on the active number of users.

Uses internet technologies: The core of the service is IP-based but the connection to users and between organisations includes Multiprotocol Label Switching (MPLS), Ethernet, public internet and Session Initiation Protocol (SIP) trunking services.

Hybrid UC enables organisations to operate UC through blended cloud- and premises-based deployment models. The hybrid split between the cloud and premises can be based on functionality, geography or utility/use cases. Hybrid UC is typically provided in one of three ways:

Functional hybrid provisioning: UC functions like audioconferencing or telephony are delivered via the cloud while functions like videoconferencing and email are obtained via premises-based solutions.

Geographical hybrid provisioning: UC elements are delivered in different ways depending on the location of users. For example, in a branch office site, users could make telephone calls via the cloud, while users in a different site or geography, such as a head office, could use a premises-based solution.

Utility or use-case hybrid provisioning: Selects cloud or premises UC delivery based on a volume threshold or meeting certain requirements for quality/reliability. For example, premises-based solutions could be used for internal audioconference calls for up to six people or informal ad hoc web conferencing, but if the conference grew beyond six users, then it would switch to cloud to meet the larger capacity demand.

Also known as unified communications as a service (UCaaS), public cloud UC provides communications over multitenant or virtualised infrastructure that is owned, maintained and hosted by the service provider. Users pay a subscription-based fee, typically per user, per month. Cloud UC supplies equivalent functions to premises-based services, and spans integrated IM and presence, telephony, messaging, conferencing and mobility.

In addition to the core cloud UC capabilities outlined above, users are also interested in: mobility integration with smartphones and tablets; combined cloud UC and cloud contact centre functionality; and collaboration functions such as shared workspaces and enterprise social networks.

Most cloud UC deployments are still for small or midsize businesses. However, with strong brands such as Microsoft, Google and Cisco offering mature platforms, demand from larger enterprises (up to 5000 employees) is on the rise. Cloud UC providers are increasingly expanding their support to multiple regions, which means we’re starting to see deployments spanning two or three regions, such as Australia and Asia.

How to decide which UC solution best fits your organisation? Private cloud services are best when there are limits to the quality and coverage of public cloud services or when the organisation is subject to regulatory and security issues that restrict use. It is also popular with IT organisations that want to outsource management of the application and infrastructure but believe public cloud services are insufficiently mature. Private cloud satisfies the CIO’s need for agility and cost optimisation while maintaining job security for IT managers responsible for communications. However, it does come at a cost, with private cloud services having a higher cost of ownership than public.

Organisations generally employ hybrid UC procurement for its flexibility and costs, and to meet business requirements and organisation structure. For example, an organisation can use an existing IP PBX with remaining useful life for voice functionality while getting conferencing capabilities via the cloud. Blended procurement allows planners to leverage premises-based infrastructure with existing useful life and can ensure compliance, security and regulatory requirements are fulfilled on the corporate journey to the cloud.

For example, email functions can be delivered through a premises-based solution to retain control of sensitive content, while communications with fewer security requirements (like conferencing) could be obtained through the cloud. However, the costs associated with integrating UC elements can be prohibitive and may add complexity to the management interface tools. Hybrid is a good interim path for those wanting to migrate fully into the cloud but who are not quite ready for a total move.

Public cloud satisfies the business managers because it helps organisations become more agile as they grow and supports disaster recovery with replicated data centres. Businesses that opt for public cloud believe it enables them to reduce costs, focus on core competencies and reallocate IT staff to focus on competitive differentiation.

For organisations with fewer than 100 employees, the business case for public cloud UC is usually compelling, given their limited numbers of IT staff and the fixed costs of on-premises equipment. For midsize organisations, it relieves them of the complexity and expense of supporting remote sites and makes it easier to support mobile and telework use cases. While public cloud is still an option for larger companies, private cloud may be more cost effective and beneficial in the long run.

Each UC solution has its pros and cons. By better understanding the options, IT leaders can now determine which option best fits the needs of their organisation.

Bjarne Munch is a principal analyst at Gartner. He provides strategic and technical advice on network service and managed network service strategies and sourcing best practices and service-level agreements, as well as advice on videoconferencing, IP telephony and unified communications strategy development, solution design and deployment best practices.

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