Programmable Communications Outlook and Opportunities

API Driven Communications Power Next Generation Customer and Employee Experiences

Frost & Sullivan defines programmable communications as any service or solution that enables developers to programmatically embed voice, video, chat, and messaging services within their business or consumer applications, business process or workflow automations. Through application programming interfaces (APIs), programmable communications expose capabilities either within a business's existing communications infrastructure or as an overlay alongside established communications solutions.

In this context, Communications Platform as a Service (CPaaS) offerings are just one path for businesses and developers to incorporate programmable communications elements into their applications and workflows. Increasingly, open APIs are being incorporated into new and even existing enterprise communications services, including SIP trunking services, unified communications as a service (UCaaS), contact center as a service (CCaaS), and video meetings platforms. Frost & Sullivan anticipates that some level of programmability will be incorporated into every communications service available to business customers over time.

CPaaS and programmable communications solutions exist to automate business processes and workflows and enable customer engagement across a wide array of digital channels. While many of the most common use cases for CPaaS have been focused on enhancing the customer experience (CX), our survey suggests that IT decision makers are looking increasingly inward and leveraging programmable communications to solve more employee experience (EX) challenges. Prior to the COVID-19 pandemic, CPaaS adoption was tied closely to large-scale and slow-moving digital transformation efforts being undertaken by businesses. However, the onset of the pandemic and the ensuing lockdowns and social distancing mandates forced a rapid acceleration of existing digital transformation efforts and launched a multitude of new initiatives. Organizations of all sizes underwent a radical adaptation of their business processes and, in some cases, their entire business models, in order to survive. Engaging with customers via digital channels moved beyond being a differentiator for digital-native companies and instead quickly became part of industry and vertical best practices. However, there are challenges to broad adoption of CPaaS, including a lack of skill set to deploy the solution or an inability to find a trusted provider in the CPaaS space.

As part of our ongoing research, Frost & Sullivan sought to measure the current use and future decision-making behavior toward communications and collaboration solutions across industry verticals, customer segments, job roles and geographic regions. More specifically, this study provides data on adoption drivers and restraints, deployment plans, and perceived benefits and concerns, with regard to programmable communications, APIs, and CPaaS tools.