Communication as a service

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Communications as a Service (CaaS) is a type of outsourced enterprise communications solution where a third party vendor(known as CaaS vendor) is responsible for the management of hardware and software required for delivering Voice over IP, also known as Voice as a Service, instant messaging Instant messaging and video conferencing applications using fixed and mobile devices. CaaS model has evolved in the communication industry in a similar manner to the SaaS model in the field of software delivery.

This model of delivery opens low cost opportunities for the SMB's who are interested in Pay-as-you-go pricing model. The Gartner report estimates the total revenue for $252 million in 2007 alone ^[1]

Gartner defines CaaS as IP Telephony that is located within a third-party data center and managed and owned by a third party. The assets are not carrier-grade, the service is not "in the network" and the assets are multitenant in terms of usage. IP Centrex is an example of one type of CaaS. SIP trunking where you calls go over an IP network instead of TDM is another example.