The cloud has ushered in an era of increased integration and modularity. Businesses can now retrofit their communication systems with new technologies, innovations, and channels – which used to be a time and effort-intensive exercise until the rise of CPaaS.
Communication Platform as a Service or CPaaS allows customers to rapidly and effectively incorporate communications features such as audio, video, and messaging within their applications without having to construct back-end infrastructure or interfaces. This is typically a no-code or low-code process, making CPaaS accessible to virtually any company of any size. That is why CPaaS revenue generated in North America alone will reach $15 billion by 2026, a massive uptick from $3.7 billion in 2021. So, what is CPaaS, and why is it so crucial for business communication? To understand this, let us first explore how CPaaS works.
What is CPaaS, and How Does it Work?
Communication Platform as a Service (CPaaS) is a cloud-based middleware solution that allows businesses to add various communication features and channels to their existing tech stack, web app, or software using application programming interfaces (APIs). Some of the services enabled by CPaaS include:
- WebRTC-based calling
- Text messaging (SMS)
- On-demand SIP trunking
- Multimedia and video messaging
- Social media messaging like WhatsApp
- Number masking
- Security features and much more
APIs are often the central component of CPaaS systems. Developers employ tools, procedures, and protocols to construct, configure, and link complex software capabilities. Most CPaaS solutions comprise a suite of APIs that can be added to virtually any program.
How Does CPaaS Work
CPaaS is a type of PaaS, or Platform as a Service, which is cloud-based and programmable.
It incorporates video conferencing, interactive voice response (IVR), SMS/MMS, social media messaging, voice calling, and chat. CPaaS APIs serve as mediators between two specific applications to enable the integration of communications capabilities into an existing application framework. These services are accessible without jeopardizing the app’s core function or necessitating a different platform.
Instead of building their CPaaS infrastructure from scratch, developers may use third-party CPaaS suppliers. These vendors supply everything required by a developer, including standard APIs, code, and software development kits. Typically, developers are paid a monthly membership fee for the service, comparable to other “as a service” products such as SaaS, UCaaS, or CCaaS.
The Key Benefits of CPaaS
Historically, introducing new services to a system required additional resources, a more complex and expensive infrastructure framework, and new hardware. Today, the cloud-based CPaaS approach offers businesses more flexibility in deploying and paying for digital engagement solutions. This is the fundamental advantage of CPaaS for enterprises. Other benefits include:
- Boost employee efficiency – Employees are empowered by various efficient communications and collaboration options embedded within company systems and procedures. They may communicate with one another and obtain information in a manner that best suits them.
- Utilize the latest technology – Companies of any size may affordably acquire innovative technologies. 85 percent of businesses feel that APIs will be critical for future success. CPaaS, in many ways, facilitates change for everyone
- Increase sales – Cloud-based infrastructure-as-a-service (CPaaS) solutions provide unlimited options for boosting business profits. SMS APIs enable businesses to send consumers automatic reminders. And chatbots provide online self-service possibilities
- Save costs – Cloud-first CPaaS solutions are as adaptable and customizable as their users require. There are also pay-as-you-go systems for businesses seeking to reduce expenses
- Enhance customer service – CPaaS ensures you can communicate with customers through their preferred channels. A superior customer experience generates brand loyalty, increased sales, and eventually, brand ambassadors
- Customize without restrictions – If the organization requires text chat and video conferencing but no voice chat, CPaaS can also help with this. It offers a degree of customization that allows you to fulfill any of these requirements without subscribing to many unnecessary services. Additionally, developers may tweak any provided APIs to deliver the most optimal solution
- Scale faster – In addition to being entirely customizable, CPaaS platforms are fully scalable, as one can add or remove features without any hassles
CPaaS Use Cases for Businesses
Communication Platform as a Service (CPaaS) applies to any business process involving communication; specific use cases include the following:
- Healthcare – There are several CPaaS opportunities, ranging from patient monitoring devices that may instantaneously alert a doctor when a patient’s health deteriorates to file management solutions. These use cases would benefit from the event triggers and automation that CPaaS enables.
- Hospitality – In the hospitality industry, CPaaS technology may alter every aspect of customer interactions. For instance, Hotel API integration enables two-way SMS communication, allowing consumers to check in before they arrive at their location.
- Government/ Smart Cities – A civilian may take a picture and send it to a government agency if they see a forest fire or a flood. The authority may utilize CPaaS to deliver SMS alerts to residents automatically. This is merely one illustration of how CPaaS may enhance citizen services.
- Retail – The CPaaS system may automatically enroll clients in the loyalty program if they often return to a shop and purchase more items. CPaaS may be integrated into the inventory plan, allowing you to maintain track of your inventory levels.
- Banking – CPaaS might aid in enhancing banking security. A system might automatically send an SMS message to a user and the customer management team whenever an unknown entity attempts to access their account in suspicious ways.
How to Get Started with CPaaS?
The easiest way to begin a CPaaS implementation is to partner with a CPaaS vendor. These companies offer application programming interfaces (APIs), code snippets, and programs that users may use to add real-time communications channels and functionalities to your ecosystem. In essence, they are API platforms. It is also essential to protect the security of your data. When selecting a service, it is beneficial to search for IOS 27001, GDPR, and SOC2 standardization, as part of your chosen vendor’s services. Read our list of leading CPaaS providers to learn more about possibilities in this space.
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