Communications Platform as a Service (CPaaS) refers to cloud-based platforms that enable developers to add real-time communications features (voice, video, and messaging) in their own applications without needing to build backend infrastructure and interfaces. This developing sector has recently been disrupted through the coming together of two leading technology services.
The formation of the new company arises from BICS, a global provider of international wholesale connectivity and interoperability services, acquiring the company TeleSign for $230 million. The merger leads to new services for the cloud communications development lifecycle and associated security.
To get a feel for what the merger means for the sector, Digital Journal spoke with Ryan Disraeli, co-founder at TeleSign. In 2017, Disraeli was named to ‘Forbes 30 under 30’ for enterprise technology.
Digital Journal: Thanks for the interview. What are the main factors disrupting the communications arena?
Ryan Disraeli: A couple things: companies undergoing digital transformation, the spread of mobile connectivity, cloud consumption and the rise of self-service channels are disrupting the communications area. What this essentially means is more and more consumers are communicating over mobile devices and demanding businesses provide them with the type of real-time communications abilities they prefer, which leads to businesses adopting cloud communications as a way to upgrade their customer communications efforts without having to invest in backend infrastructure or expertise.
DJ: How important is it to embrace digital technology?
Disraeli: Embracing digital technology is crucial to business survival today. In fact, our recent Customer Communications Report shows that 99 percent of all businesses are currently in the process of digital transformation. Of the companies in advanced stage digital transformation (in which digital transformation is achieved in all or most areas of the company), more than a third (34 percent) say their customers are “very satisfied” with the channels they use to communicate, versus just 11 percent of those businesses in early stages of digital transformation.
DJ: What are the main types of digital transformation that are happening?
Disraeli:Digital transformation is happening in all aspects of business, but few places is it having as big an impact as in the customer communications space. In today’s on-demand economy, consumers expect to be able to communicate with brands 24/7 in real-time, and cloud communications is making it easier than ever for brands to add real-time communications abilities without the need for investment into backend infrastructure.
DJ: What services does TeleSign provide?
Disraeli:TeleSign is a Communications Platform as a Service (CPaaS) company. We offer a range of APIs and SDKs that enables our clients to better connect, protect and engage with their customers. What truly sets us apart is our unrivaled global network and data intelligence.
DJ: How important was the acquisition by BICS?
Disraeli:The acquisition by BICS provides synergies to both companies, greatly expanding TeleSign’s access to telco providers and routes around the world and creating the first ever global, end-to-end CPaaS provider. This provides TeleSign with a unique competitive advantage over other cloud communications companies.
DJ: How will your company strategy change?
Disraeli:TeleSign will continue to operate as an independent subsidiary and our strategy will not change as a result of this acquisition. We will continue to provide the same innovative cloud communications products, backed by our unrivaled level of customer support, data intelligence and global network.
DJ: How important will Communications-as-a-Service become for businesses?
Disraeli:Cloud communications (otherwise known as Communications Platform as-a-Service) is rapidly becoming a core part of what drives business success today. Currently, only 32 percent of businesses use cloud communications, but that number is projected to rise to 80 percent by the year 2020, according to our Customer Communications Report.
A large part of this growth is due to the fact that almost nine in ten businesses say their success depends on the ability to connect with customers via cloud communications channels such as SMS/text or Voice. Whether it’s sending delivery notifications, appointment reminders, two-way customer service communications, adding security with one-time passcodes, or one of many other use cases, cloud communications is changing the way businesses connect with their customers.
DJ: Who are your main competitors?
Disraeli:We compete in some aspects with other cloud communications providers such as Twilio and Nexmo, but our global positioning and heritage in security and data intelligence sets us apart.
DJ: How will you stand out in relation to competitor companies?
Disraeli:As a company founded on security, TeleSign has always been known for high-quality solutions that are delivered over a top-quality global network. This, combined with our proprietary data intelligence on every phone number in the world, helps us stand out as both a communications and security partner for most of the world largest brands.
DJ: What are your future plans?
Disraeli:We are continuing to invest in our products, data intelligence and global network, to ensure our clients have access to the best communications network and innovative solutions that enable them to better connect, protect and engage with their customers.
