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3 Unified Communication as a Service Providers to Buy in 2023

Unified Communication as a Service (UCaaS) is gaining ground as a prominent network standard, driven by the growth of the cloud business model as an affordable, scalable and easy-to-deploy unified collaboration communications strategy for large enterprises in 2023.

This high-definition telepresence cloud solution integrates telephonic and Internet communication methods into a single unified platform.

UCaaS is of utmost importance to large enterprises for cost control across a distributed workforce. The global pandemic thrust to the UCaaS market is evident with the increasing adoption of video conferencing and collaboration tools, including unified messaging, enterprise telephony, and instant messaging surging exponentially.

Intelligent chatbots and predictive intelligence features enhance AI and machine learning skills, allowing businesses to have better communication and an improved experience of working remotely.

Video and audio conferencing, meetings and collaboration may all be considerably improved, thanks to fast, low-latency communication made possible by 5G networks. The adoption of UCaaS solutions, platforms and services is particularly encouraged by cloud-specific network function virtualization and multi-access edge computing capabilities offered by 5G technology for scalable and self-healing networks.

Key players in the market, including Zscaler ZS, HubSpot HUBS and Ringcentral RNG, each carrying a Zacks Rank #2 (Buy), are well poised to benefit from the growing global UCaaS market, which is expected to reach $61.07 billion in 2022, up at a CAGR of nearly 26.43% from 2022 to 2030, per Custom Market Insights. The market is projected to reach approximately $240.17 billion by 2030.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Year-To-Date Performance

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Zscaler Digital Experience Updated to Tackle UCaaS Performance

Zscaler has made several enhancements to ZDX to help security, networking and service desk/help desk teams remediate UCaaS app-related quality and performance issues. ZDX is a subscription-based service delivered on Zscaler’s cloud-native Zero Trust Exchange platform. The offering is completely transparent to the user as they don’t have to authenticate the service or click to accept any modules.

Zscaler integrates with Microsoft MSFT Teams and Zoom using secure APIs to provide organizations with a single view of all system data from meetings and user interactions. This enables users to avoid latency issues created by data from apps running in the background while attending a video call.

Through expanded technology partnerships with Microsoft, Zoom, and ServiceNow, Zscaler can offer tighter integrations in digital experience monitoring. Both Microsoft and Zoom are working closely with Zscaler to collect more endpoint analytics data and improve their services.

The Zacks Consensus Estimate for Zscaler’s 2022 earnings has remained steady at $1.17 per share over the past 60 days.

HubSpot Gives Customer Service Platform a Makeover

HubSpot is a VoIP and communications provider that unifies all internal and external communication channels within their all-in-one CRM solution. Along with calls, HubSpot logs all emails, live chat, chatbot and all other outgoing communications with customers and sales leads.

With HubSpot, customer interactions are saved within the company’s account. Each customer ticket is shared and available to the marketing, sales, and customer service teams, empowering them to actively work together to provide the best customer experience possible.

The company has refreshed its Service Hub customer service platform by adding service-level agreement management tools, service automation features, a customer portal and mobile access to agent email.

HubSpot also plans to roll out inbound calling, now in beta, through the Twilio telephony API. The Twilio integration currently provides outbound calling for HubSpot users typically focused on marketing and CRM.

While HubSpot is a pricier UCaaS solution, it enables small companies to scale and grow with their pricing packages. This provides an all-in-one tool that companies can use to organize and manage their entire businesses.

The Zacks Consensus Estimate for HubSpot’s 2022 earnings has been revised upward by 9.2% to $2.49 per share over the past 60 days.

RingCentral Being Recognized as a Market Leader

Gartner has recognized RingCentral as a Leader in the 2022 Magic Quadrant for Unified Communications as a Service (UCaaS), Worldwide report, making this the eighth year in a row in which RingCentral has been named in the Leaders quadrant in the Magic Quadrant report.

RingCentral offers cloud phone systems with local numbers, toll-free numbers, extensions, call screening forwarding, intercom, IM with file sharing and team chats, paging, Internet-fax and visual voicemail. The cloud PBX offering comes with multi-level IVR, call logs, hot desking, caller ID, number porting, video conferencing, webinar, and business SMS and MMS.

RingCentral has added multiple enhancements to its UCaaS offering that simplify communications and collaboration, and offer insights to make informed business decisions and enhance the customer experience. These include the introduction of RingCentral Webinar, AI-based Meeting insights and summaries, Whiteboard, live transcription, next-gen analytics for lines of business, and AI Agent Assist this year.

RingCentral MVP (previously known as RingCentral Office) is another unified communications platform that's been around since the PBX days. On the security side, RingCentral offers SSO, fine-grained roles and permissions, overview, and an encrypted VoIP service.

The platform includes an analytics portal, performance reports, QoS reports and live reports. It has integrations with Salesforce, OneDrive, Google Drive, Zendesk, Service Now, Okta and more to ensure a seamless deployment.

The Zacks Consensus Estimate for 2022 earnings has moved north by 2.1% to $1.97 per share over the past 60 days.

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