The future of cloud communications took centre stage at Cavell Enable 2024, and it was clear the game is changing for service providers. The stakes are rising, and the battle lines have been drawn around artificial intelligence, customer experience, and the evolving dynamics of BYOC (Bring Your Own Carrier) enablement.

In an insightful keynote packed with market statistics, Cavell’s Head of Research, Patrick Watson, laid bare the challenges and opportunities that lie ahead for ‘the big three’ in the cloud communications space—Microsoft, Cisco, and Zoom—who are leading the charge on enablement marketplaces.

The AI Avalanche

With 92% of end-customer organisations trialling or deploying artificial intelligence, service providers are staring at an innovation arms race. The question isn’t whether AI will shape communications but how it can drive tangible business outcomes for customers. Enterprises are desperate for efficiency gains, improved productivity, and cost reductions. Yet, Cavell’s research reveals many businesses are still groping in the dark, unsure of AI’s full potential.

The opportunity for service providers? Become the guiding light. Building AI-powered solutions that genuinely enhance end-user experiences could be the wedge needed to gain loyalty in an increasingly crowded market.

The CX Goldmine

It’s no longer just about dial tones and video calls—customer experience (CX) is the new battleground. Enterprises are pivoting towards CX as a strategic priority, driven by the promise of better margins and stickier customer relationships. Contact centres and informal CX solutions now overshadow traditional unified communications, creating fertile ground for providers to add value.

BYOC Enablement: Opportunity or Trap?

The rise of BYOC enablement marketplaces—like Microsoft Operator Connect, Zoom Provider Exchange, and Cisco Cloud Connect—offers providers unprecedented access to global customers. But these platforms come with a caveat: how do you differentiate when the product is the same?

Watson’s data paints a stark picture of the service provider conundrum:

  • Competition: The landscape is cutthroat, and price degradation is rampant.
  • Customer Retention & Acquisition: Keeping hold of customers while finding new ones is no easy feat.
  • Product Differentiation: When everyone sells the same UC platform, where’s the edge?

Providers are flocking to enablement platforms not just for enterprise demand—service provider demand for multi-UC strategies now outstrips enterprise appetite. Providers need the flexibility to offer Microsoft here, Zoom there, and Cisco where it fits best. Why? The more platforms they offer, the greater their access to customers across sectors and sizes.

Cost: The Elephant in the Room

For enterprises, cost reduction is the unrelenting top challenge. Every pound spent on communications tech is scrutinised, and enablement marketplaces must deliver on their promise of simplicity and competitive pricing. Service providers who can streamline administration and reduce costs for their clients will stand out.

The Big Three Growth Surge

The numbers don’t lie: BYOC adoption is accelerating across the board. Cavell’s proprietary research shows:

  • Microsoft PSTN-enabled users top 20 million,
  • Webex Calling users surpass 16 million,
  • Zoom Provider Exchange nears 8 million users.

This growth reflects not just enterprise appetite but also the relentless service provider scramble for market share.

Looking Ahead

As Patrick put it,

“The case for enablement markets is stronger for enterprises, but providers are chasing a seat at the table.”

Multi-vendor strategies, AI innovation, and CX-first thinking are no longer optional—they’re survival tactics.

For service providers willing to rethink their portfolios, embrace global platforms, and laser-focus on differentiation, 2025 promises opportunities to outmanoeuvre the competition. For those who don’t, the future looks far less certain.

The year ahead will test the grit and creativity of every player in the cloud communications space.

Ready or not, the enablement revolution is here.



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