Gartner has announced that it will be discontinuing the UC Magic Quadrant report in order to purely evaluate Software as a Service (SaaS). As a result, the decision signals a huge shift in enterprise buying patterns.
Why drop UC?
The Gartner Magic Quadrant positions technology players within a specific market. By applying a “graphical treatment and a uniform set of evaluation criteria,” the Quadrant can “ascertain how well technology providers are executing their stated visions.”
In addition, the Quadrant positions four types of technology providers in markets “where growth is high and provider differentiation is distinct.” These include Leaders, Visionaries, Niche players, and Challengers.
In the past, however, many experts have questioned the accuracy, fairness, and overall value of the report. The scoring method is particularly contentious and the minimum entry criteria is also a cause for concern.
Gartner’s methodology involves evaluating vendors according to their “completeness of vision” and “ability to execute” innovative technological solutions. However, the report fails to provide an overall market review as it only evaluates large enterprises.
UCaaS gains traction
Gartner has announced that UCaaS reports will remain, but these reports will focus on assessing full-stack solution providers. As a result, the only vendors that qualify will be those who have complete autonomy over their UC solutions.
It is no surprise that Gartner is re-focusing its report considering that 56% of companies plan to move to UCaaS in the near future. The latest IDG QuickPulse survey also found that 52% of medium-sized enterprises currently employ a UCaaS solution.
Moreover, a Synergy report recently found that the UCaaS market is accelerating at an annual rate of 29%. In fact, the market is now generating revenues exceeding $400 million per quarter and is approaching $2 billion annually.
Although the global UC market could reach $143.49 billion by 2024, on-premise UC is no longer relevant in the age of globalisation. Instead, a new report suggests that UCaaS vendors offering programmable solutions will thrive.