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What is CPaaS and how can it improve your customer experience strategy?

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We have spent a lot of time looking at CPaaS and what it can deliver for both telemedia and the businesses that use it. But, architecturally, is it and how can it be best deployed? Umesh Pande explains

According to Gartner “CPaaS offers application leaders a cloud-based, multilayered middleware on which they can develop, run and distribute communications software. The platform offers APIs and integrated development environments that simplify the integration of communications capabilities (for example, voice, messaging and video) into applications, services or business processes.1 The global CPaaS market was valued at $4.54 billion in 2020 and is expected to reach $26.03 billion by 2026.

Rather than having to rip and replace existing systems, companies can maximize their existing technology investments and add different real-time communications capabilities to these systems. Traditionally, development teams would have had to build or integrate standalone applications from scratch to make existing systems extensible. However, CPaaS provides a development framework that encompasses application programming interfaces (APIs), pre-built applications, and software development kits to accelerate the development process, streamline integrations and enable organizations to customize their communications infrastructure to best meet their unique needs.

Very min CPaaS architecture

What is CPaaS used for?

CPaaS stands for Communications Platform as a Service. It is a cloud-based platform that enables developers to easily integrate real-time communication capabilities such as voice, video, messaging, and other communication tools into their own applications, without needing to build or maintain the underlying infrastructure.

CPaaS can be used for a variety of purposes, such as enabling customer service agents to communicate with customers in real-time through chat or voice, or allowing developers to build their own video conferencing solutions, or adding messaging capabilities to mobile apps.

Some common use cases for CPaaS include:

  1. Two-factor authentication (2FA) through SMS verification
  2. In-app voice and video calling
  3. SMS-based customer service and support
  4. Real-time chat and messaging within applications
  5. Integrating voice, video, and messaging into contact center solutions
  6. Enabling IoT devices to communicate with users via SMS or other messaging channels.

CPaaS is a powerful tool that enables businesses to easily integrate communication capabilities into their applications, helping them to better engage with customers and provide more personalized experiences.

How is CPaaS different from UCaaS?

CPaaS and UCaaS are both cloud-based communication solutions, but they serve different purposes. CPaaS (Communications Platform as a Service) is a cloud-based platform that provides developers with APIs and building blocks to easily integrate real-time communication capabilities such as voice, video, messaging, and other communication tools into their own applications.

UCaaS (Unified Communications as a Service), on the other hand, is a cloud-based service that provides a complete set of communication and collaboration tools, such as voice and video calling, messaging, presence, and conferencing, to enable employees to communicate and collaborate with each other in real-time from any location and on any device.

While both CPaaS and UCaaS provide cloud-based communication solutions, the key difference lies in their target users and their intended use cases. CPaaS is typically used by developers to embed communication features within their own applications, while UCaaS is used by businesses to provide their employees with a complete suite of communication and collaboration tools.

Typical CPaaS high-level architecture is shown below

Industry experts predict that the CPaaS industry will generate more than $34 billion in revenue by 2026. It’s no longer enough for companies to simply communicate with customers in their language; they also need to communicate through the channels that customers prefer.

Legacy communication infrastructure can hinder these efforts. CPaaS allows developers to customize an enterprise’s communication stack and add new capabilities that align with the company’s strategic goals. With this solution, businesses can execute a modern CX strategy and deliver the high level of service that customers now expect in today’s competitive business environment.

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