In 2022, the CPaaS industry was punished for the “excesses” of 2020–21. In 2023, we cleaned up our act. In 2024, we demonstrated that steady, efficient growth was possible. For 2025, my prediction is that organic growth will feel monotonous, prompting a renewed focus on M&A as a source of inorganic growth.
Outside of vertical software companies like Klaviyo and Braze, the industry’s growth narrative has been rather repetitive. For revenue leaders inside these organizations, it’s still hard work, but the closer you are to the network, the more you find yourself competing on price.
What About AI?
While AI is helping us sell more, few of us are actually selling AI (prove me wrong). Like every tech hype cycle, revenue follows hype, and that takes time. Watching how Salesforce fares with its Agentic AI pivot will be an instructive example.
Yet, the market will demand improvement over 2024, which is why I believe most acquirers will at least kick the tires on potential opportunities. Those with healthy cash reserves or favorable debt terms might even make some bold plays to buy growth.