Ping, ping, ping. Your business is suddenly overwhelmed with customer inquiries. Calls, emails, and messages are flooding in from every communication portal, but your current system lacks an efficient system to keep up with the surge in inquiries. The team is exhausted and the chaotic influx is affecting your customer satisfaction.
This is where Communications Platform as a Service (CPaaS) comes in.
According to Statista, the global CPaaS market is projected to reach 21.7 billion U.S. dollars in size in 2025. As enterprises increasingly migrate to the cloud and adopt customised engagement applications, this market is expected to grow in the future.
CPaaS solutions are helping companies around the world manage their communication networks more effectively while also enhancing customer experience.
This article tells you everything you need to know about Communications Platform as a Service (CPaaS), what it is, key functions and the best CPaaS providers.
What is Communications Platform as a Service (CPaaS)?
Communications Platform as a Service (CPaaS) is a cloud platform that lets developers integrate external communication tools easily. The communication capabilities range from voice or messaging to video.
Enterprises tap into a wide range of communications options for different purposes like messaging for relatively more casual catch-up or to get immediate responses. While individuals tend to email for more formal communication or when a written record is necessary.
For such a variety of communication needs, CPaaS models could be advantageous to organisations so most of their business communications can be integrated into their respective business applications and function all in real-time.
How does Communications Platform as a Service (CPaaS) Work?
Communications Platform as a Service (CPaaS) works by integrating real-time communication services such as voice, video, and messaging into existing business applications using Application Programming Interfaces (APIs).
Software developers are essentially equipped with the ability to embed real-time communication services into their applications. This happens through the use of APIs.
APIs are a set of rules and protocols that enable different software applications to communicate and exchange data with each other. This allows businesses to embed communication tools into their existing cloud applications.
APIs are basically plug-in communication functions without requiring a developer to build a complicated system from scratch. Instead, they can integrate those communication components relatively easily into their business applications.
For instance, Uber or Bolt, ride-hailing apps have their own communication systems embedded in the application itself. This allows the ride-sharing company’s driver to communicate with the customer using the ride-sharing app’s communication tools. Such functionalities are usually enabled by using a CPaaS provider’s API which sends SMS confirmations to riders or all them to contact the driver using in-app voice or even video calls.
Key CPaaS Functions
1. Outbound Voice Calls
Communications Platform as a Service (CPaaS) provides enterprises with the ability to embed outgoing calls to their business communication toolset using voice APIs. This equips business applications with the capability to make calls more efficiently and directly from within their programs.
Not only does such a function eliminate the need for a separate work phone for instance or manual dialing but it also allows enterprises to scale up or down based on their requirements. New phone numbers and other calling features are available almost instantaneously.
2. Inbound Calls
Communications Platform as a Service (CPaaS) equips enterprises with the ability to integrate advanced call-handling features directly into their pre-existing applications.
These inbound calls may include characteristics such as interactive voice response (IVR) systems for automated call routing, call queuing to manage high call volumes, call recording for quality assurance and compliance, and real-time call analytics to gain valuable insights into customer interactions.
Inbound calls in CPaaS platforms essentially help businesses manage call flows while increasing response times with personalised queues. Many platforms offer intuitive interfaces that enable users to configure call flows without additional complex programming. This often involves defining rules and conditions, such as directing calls to specific departments, agents, or voice menus (IVR), based on caller ID, time of day, or other criteria.
Such flexibility helps businesses improve call handling efficiency, reduce call wait times, and provide a better customer experience such as with inbound call centre platforms.
3. Messaging
Communications Platform as a Service (CPaaS) help enterprises take advantage of different messaging channels for effective and easy communication. For instance, this can be SMS (Short Message Service) used to send quick text messages for alerts, notifications, and promotional offers for businesses.
Additionally, the messaging function allows users to leverage in-app real-time chat either with other users or also with customer services. CPaaS platforms today also showcase advanced features like Rich Communication Services (RCS) which enable the delivery of interactive messages with images, videos, and interactive buttons, enhancing customer engagement.
Honing such messaging capabilities to business applications can provide a convenient and still more personalised communication experience for customers.
4. Video Calls
Communications Platform as a Service (CPaaS) also offers real-time video conferencing capabilities letting enterprises embed it into their applications if needed. Such a function allows businesses to host video meetings or host webinars all in real-time within their preferred platforms.
Such integration can help businesses boost collaboration, improve remote work efficiency and provide a more engaging and interactive communication experience. CPaaS often provides features like screen sharing, video recording, and real-time transcription to further improve the video conferencing experience.
5. Multi-channel Communication
Communications Platform as a Service (CPaaS) allows enterprises to develop omnichannel communication experiences. This helps them tap into a variety of communication channels including voice, video, SMS, chat, or social media messaging all in a single platform.
It makes business communication processes more efficient by allowing them to engage with customers across their preferred channels for a more personalised experience. This can improve customer satisfaction and gain deeper insights into the customer’s preferences.
Best Communications Platform as a Service (CPaaS) Providers
Webex
Webex, a San Jose-based telecommunications company is now becoming a leading provider of cloud-based collaboration solutions. This includes a variety of communication features from video meetings, calling, messaging, and events to customer experience solutions such as contact centers and purpose-built collaboration devices.
It’s Webex Connect Platform offers enterprises with Communications Platform as a Service (CPaaS) solution which allows them to rapidly automate end-to-end customer interactions and journeys across over 12 channels.
Webex Connect also offers various APIs and a rich low-code toolset to make it easy for enterprises to orchestrate, automate, and manage customer interactions across SMS, Voice, MMS, RCS, Email, Push Notifications, Live Chat, In-App Messaging, Apple Messages for Business, WhatsApp, Facebook Messenger, Instagram, and more.
Additionally, the company leverages AI and machine learning, to remove the barriers of geography, language, personality, and familiarity with technology.
Alcatel Lucent
Alcatel Lucent, now part of Nokia is a communications solution provider. Their Our Communications Platform as a Service (CPaaS) solution offers an interoperable eco-system across channels to help employees feel more productive and your customers more nurtured.
They aim to bridge the communications between humans, objects and processes enabling faster, easier, and more secure digital engagement for your business.
The CPaaS solution allows enterprises to benefit from fully integrated and customised solutions that fit their exact collaboration needs. Alcatel-Lucent Enterprise has also developed industry-focused solutions for government, healthcare, education, hospitality and more.
Telnyx
Telnyx is an American software company that provides solutions to manage an enterprise’s connectivity need from a single platform. They offer a range of connectivity solutions that allow businesses to connect with their customers or collaborate with colleagues and manage device networks.
The company leverages a private, global network with Points of Presence (PoPs) in major metropolitan areas to deliver low-latency, high-quality communications worldwide. This infrastructure, combined with a comprehensive set of communication APIs, powers enterprises with the capabilities to build innovative communication solutions.
Telnyx offers a communications platform and API with carrier-grade voice, data and messaging.
Infobip
Infobip, a London-based telecommunications service provider that recognises itself as a global leader in omnichannel engagement powering a variety of messaging channels, tools, and solutions, aiming to provide advanced customer engagement, authentication and security.
The firm helps businesses tackle challenges such as the complexity of consumer communications, grow their business and enhance the customer experience securely. It’s known for capabilities like developing easy-to-integrate APIs. They provide a unified platform for any channel with a single custom-tailored API integration.
Throughout their next generation of CPaaS (communications platform as a service) called CPaaS X, the firm provides a modular API stack. This is to help platforms scale immensely with reduced engineering effort and greater operational efficiency.
MessageBird
MessageBird is a cloud communications platform by Bird, an Amsterdam based technology, information and internet company. It specialises in developing PIs, tools, customer support software, and a global connectivity network to boost business-to-customer relationships.
Organisations can also leverage Plivo’s AI-powered solution to automate workflows, help developers with customer agent capabilities and build tailored AI chatbots to provide the best customer experience.
MessageBird was first started with the aim of rebuilding its own telecom stack from scratch. That approach enabled the firm to become one of the largest providers of business SMS, email, and marketing solutions.
The company says in Asia, they broke new ground as the first to connect platforms like Kakao, Line, and WeChat into a single API. “Before long, we combined over 800 APIs into one seamless platform, revolutionising global communication.”
Through Bird, the platform is now a single solution connecting applications and automating processes across entire organisations through AI. This helps provide businesses with a unified view of their operations.
Plivo
Plivo, an Austin-based CPaaS provider, has emerged as a leading player in the market, specialising in equipping businesses of all sizes to send and receive SMS and voice calls globally.
The company says that it simplifies customer engagement for leading brands like IBM, MercadoLibre, OneLogin and Zomato. Plivo’s suite of AI-driven solutions integrates seamlessly across multiple channels and enables businesses to acquire, service, and grow their global customer base.
Plivo also offers programmable messaging and voice calls, OTP verification, loyalty marketing, a contact centre, and sales engagement. It has a host of API products presenting diverse, modular, and standardised functionalities for seamless application integration.
Bandwidth
Bandwidth is a leading CPaaS provider headquartered in North Carolina. The company specialises in building communication stacks for enterprises, allowing them to integrate voice, messaging, and 911 services into their applications and workflows.
They build these communication stacks on their own global network for best reliability which is grounded in both telecom and real-world software expertise. So you can create exceptional experiences for customers—anywhere in the world.
Anthony Bartolo, Bandwidth’s Chief Operating Officer explained that cloud communications is the fastest way for enterprises in today’s global economy to build a better brand experience, reduce operating costs, leverage emerging AI technologies, lighten regulatory burdens and simplify digital transformation company-wide.
“And they’re doing it with Bandwidth. We strongly believe our rare global footprint, powerful cloud platform and scalable offerings have become the most compelling route to the cloud.”
Vonage
Vonage, an American cloud communications provider based in New Jersey is also a subsidiary company of Ericcson, a Swedish multinational networking and telecommunications company. Vonage is known for making communications more flexible, intelligent, and personal, to help enterprises the world over stay ahead.
Vonage offers a comprehensive CPaaS solution that equips businesses with the ability to embed real-time communication features. They provide unified communications, contact centres, and programmable communications APIs, built on the “world’s most flexible cloud communications,” the company claims.
Vonage's platform also provides features like AI-powered conversational interfaces, advanced analytics, and global reach, enabling businesses to streamline communication workflows, improve customer engagement, and drive business growth.
Sinch
Formerly called CLX Communications, now Sinch is a Swedish Communications Platform as a Service (CPaaS) company known for providing businesses with messaging, voice, and email communication capabilities to engage with their customers.
According to Sinch over 150,000 businesses including Google, Uber, Paypal, Visa, Tinder, and several others rely on Sinch’s Customer Communications Cloud to power engaging customer experiences through mobile messaging, voice, and email.
Not only does the organisation provide independent communication capabilities but also builds custom omnichannel campaigns. They also provide AI-driven super networks, APIs and applications to ensure enterprises connect with their customers reliably and securely.
Twilio
Twilio is a San Francisco-based cloud communications company specialising in programmable communication tools for organisations that require more personalised functions to engage with their customers.
It allows firms to leverage communications and data to infuse intelligence and security into every stage of the customer journey. This includes sales and marketing to growth, customer service, and a wide range of other engagement scenarios. It’s achieved through a flexible and programmatic approach.
Twilio’s cloud Communications Platform as a Service (CPaaS) allows users to embed omnichannel communications solutions into their existing apps and services with APIs. This means it provides enterprises with a unified communications platform that combines well-built channel APIs with AI and data for each customer’s unique needs.
