By Damian Hanson, Co-Founder & Director of CircleLoop

Cloud communication has rapidly become a vital tool for SMEs and will future-proof businesses like never before. As we move into 2023, we expect to see more advancements in cloud communication technology and a wider adoption across SMEs in varying industries.

With many businesses migrating to the cloud, the new way of working has required innovative ways to communicate and become more flexible as a business. Cloud-based technology has been an essential resource for startups to increase productivity, reduce costs and improve collaboration.

We expect more SMEs to implement cloud-based communications tools to improve the working experience of employees as well as customers, but how useful has it been throughout 2022?

An Overview of Cloud Communications in 2022

According to Mintel, the market size for UK cloud computing was estimated at £41 billion in 2022. Businesses relied on cloud-based communication tools to support aspects of hybrid working, improve collaborative efforts with distributed teams and effectively streamline communication from an internal perspective.

The widespread adoption has encouraged unified communication. More companies have started adopting Voice over Internet Protocol (VoIP) this year and saw the benefits of making phone calls through an internet connection instead of a regular landline or a mobile network. Increasingly, people are becoming aware of VoIP as a flexible and cost-effective alternative to public switch telephone networks (PSTN) and Integrated Services Digital Network (ISDN).

83% of organisations indicated they had no visibility that their PSTN and ISDN services would be switched off in 2025, according to Spitfire Network Services ‘Switch On to the Switch Off’ survey. There is more incentive for businesses to utilise cloud communications to get ahead of the competition when many SMEs are unaware of these significant upcoming changes.

The Top Five Predictions of 2023

So what can we expect from cloud-based communication as we embrace a new year? I’ve listed below five of my top predictions for cloud communications in 2023:

1. 5G Will Continue to Improve

5G deployment is now well underway and promises significant connection upgrades, faster internet speeds and lower latency. With 5G connections predicted to surpass 1 billion in 2022 and 2 billion by 2025, there’s a massive opportunity for business growth, especially for those early adopters of private 5G networks. 5G is slowly becoming a formidable force, and many believe it will outperform WiFi.

1. Sustainability in Business

The pledges made at COP27 sent a clear message to companies globally that tackling sustainability issues in the workplace should be of the utmost importance to meet environmental goals. With climate change being an important focus, the rise of cloud-based technologies has gone hand in hand with the business landscape and their combined efforts to reduce waste and improve energy efficiency for SME businesses in the UK.

1. Businesses Will Become Intentionally Recession-proof

As the UK slips into a recession for the first time since 2008, businesses of all sizes are looking for ways to survive the challenging times ahead. We analysed ONS business birth and death data from 2008-2013 from our Recession-proof Index to identify which industries and regions are the most recession-proof for new businesses. Many businesses are looking at innovative ways to help future-proof their business for unforeseeable recessions and other economic disturbances in the years to come.

1. AI Will Boost the Efficiency of Cloud Communication

The speed and efficiency of cloud computing will increase with the help of AI. Cloud-based as-a-service platforms are rapidly emerging, enabling users to access machine learning functions such as AI-powered virtual assistants and chatbots such as Chat GPT. These will help businesses automate customer service and support providing faster, round-the-clock communication that is so in demand by customers today.

1. Increased Adoption of Integrated CRM Software

Customer relationship management systems continue to become more functional and comprehensive. CRM software companies now offer improvements to existing functions while creating specialised solutions for various needs. Technological advancements regularly change how we use CRMs in the business world and increasingly enable them to integrate better with other business tools and technology. Better integration means greater benefits to business and we can expect to see more SMEs adopting these tools.

Cloud-based Business Communication in 2023

Cloud communication has proven to be a valuable asset for SMEs in 2022, and there’s no doubt that this trend will continue its upward trajectory in 2023. The scalability of cloud-based tools and the improved collaboration and security offered are just some of the benefits we expect to see in 2023.

The future of cloud communication looks bright, and SMEs that adopt these new technologies are well-positioned to compete in an increasingly competitive market. Integration of AI, improved 5G networks and improved functionality of business software will provide even more opportunities to improve internal and external communications and better serve their customers and employees alike.