$25BN Market for Cloud Communication

Cloud communication platforms are growing in popularity as a way for businesses to overcome the high costs and inflexibility of traditional communication systems. The shift from voice calls to video calls and from landlines to voice over internet protocol (VoIP) has made it easier for communication to be managed by cloud communication platforms. CPaaS (or Communication Platform as a Service) is expanding and, according to Juniper Research, will reach $25BN in 2025, from just $7BN in 2020.

Twilio, one of the successfully IPOed American cloud communication startups, posted $548.1MM in revenue last week, up 65% year over year. Its customers like Uber, Lyft, DoorDash, and Instacart are able to leverage Twilio's technology to embed voice, text messaging, and video communication directly into their own applications. But competitors of Twilio are aplenty, from giants like Cisco to new private upstarts to companies like Softbank-backed Swedish messaging company Sinch. Sinch recently acquired Inteliquent, a startup that services many American enterprises and telecoms with a voice communication platform, preparing to take Twilio head-on in the US.

Private CPaaS companies

• Genesys is a Daly City, CA-based company that uses cloud and AI to connect customers with businesses, and according to the Genesys website, delivers more than 70 billion customer experiences in over 100 countries. 
• Aircall raised its Round C funding in May 2020 led by German telecom Deutsche Telecom Capital Partners. The company offers a cloud-based call center software integrating CRM and other customer communication and productivity tools. 
• Dialpad is a Series E San Francisco-based company that was last funded in December 2020, in a round led by Softbank. The company focuses on helping businesses communicate better via proprietary phone and video system services, including customer contact centers.
• SignalWire is a Series A San Francisco-based enterprise CPasS company delivering communication solutions through its cloud framework and APIs.