Did you know? All Video & Audio API plans include a $100 free usage credit each month so you can build and test risk-free. View Plans ->

Communications Platform as a Service (CPaaS) vs Unified Communications as a Service (UCaaS)

Whether it's for team meetings or customer service, companies must be able to communicate internally between employees and externally with consumers. There are many ways to achieve this, but picking the right one depends on a business's needs.

Two of the most common choices for those who want multi-channel cloud-based communications without investing in infrastructure or programming it in-house are CPaaS and UCaaS.

In this article, we'll compare CPaaS vs UCaaS in terms of their basic features, differences, use cases, and how developers work with them.

CPaaS vs UCaaS at a Glance

Communications Platform as a Service (CPaaS) and Unified Communications as a Service (UCaaS) are two cloud-based services that bring communication capabilities to companies. Still, they're quite different in their approach.

What Is CPaaS?

CPaaS comprises Application Programming Interfaces (APIs) that allow developers to integrate communication features directly into their apps, including video calling, livestreaming, traditional telephony systems, Short Message Service (SMS), Multimedia Messaging Service (MMS), social media messaging, email, and fax.

CPaaS APIs come with supporting features that add to their value, such as call transcription, Interactive Voice Response (IVR), and number masking. Vendors may also offer multi-channel Software Development Kits (SDKs).

Let's consider a company that wants to offer phone support to its customers. If the company goes with a CPaaS Voice API, developers will need to spend days, if not longer, integrating the API, securing it, and testing it before pushing it to production.

Once set up, their customers can call them or service providers from inside the app, delivering sleek and convenient real-time communication functionality.

What Is UCaaS?

Unified Communications as a Service, or UCaaS, is an all-in-one suite of communication tools in web, desktop, and mobile apps. It comes with most channels and many of the supporting features that CPaaS does --- without the need to code.

Returning to our phone support example, now let's say the company chooses the UCaaS route. Beyond installing the software or logging onto the web version and becoming familiar with the feature set, there's minimal setup --- no coding or waiting on integration. There's only easy communication from day one.

With either approach, the company will benefit from scalability and savings on infrastructure and maintenance, thanks to CPaaS and UCaaS being cloud-based platforms.

How Do CPaaS and UCaaS Differ?

CPaaS (Communication Platform as a Service) and UCaaS (Unified Communications as a Service) are both cloud-based solutions that offer omnichannel communication capabilities but differ in their approach and flexibility. CPaaS enables omnichannel communication through the use of APIs, allowing businesses to integrate communication channels directly into their apps or websites. In contrast, UCaaS offers omnichannel communication on a unified, all-in-one platform.

Scalability and costs also differ between the two. CPaaS provides granular scalability due to its modular nature, cutting development and infrastructure costs while offering greater flexibility. UCaaS, on the other hand, includes bundled plans that are less granular but still reduce infrastructure and development expenses.

Security for both solutions typically includes encryption and multifactor authentication, with the CPaaS vendor handling most major security concerns. However, CPaaS may require more setup for API-specific security, whereas UCaaS simplifies the process. Both CPaaS and UCaaS generally comply with key regulations such as HIPAA and GDPR, depending on the vendor.

Customization is a key differentiator. CPaaS is highly customizable, supporting a broader range of use cases, but it demands a deeper time investment from developers. UCaaS is less customizable but easier to set up and use, making it a simpler solution for many organizations.

In terms of features, both CPaaS and UCaaS offer capabilities like recording, automation, analysis, and scheduling, though CPaaS provides more flexibility to tailor features to specific needs. Integrations also highlight their differences: CPaaS is designed to embed directly into apps or websites and supports integrations with popular tools like Zoom, Microsoft Teams, CRM, ERP, and project management software. UCaaS functions more as a standalone platform but can still integrate with similar third-party tools.

Overall, while CPaaS excels in flexibility, customization, and integration capabilities, UCaaS prioritizes ease of use, unified communication, and faster deployment.

Let's compare CPaaS and UCaaS in terms of channel bundling, depth and customization, and vendor-specific differences.

All-in-One vs Modular

The UC in UCaaS stands for "unified communications," which is exactly what you get: access to multi-channel communication on the same app provided by the vendor.

UCaaS platforms will likely be intuitive to users familiar with Zoom and Microsoft Teams, which can fall under the UCaaS umbrella themselves with their respective telephony plans.

CPaaS vendors offer Voice, SMS, Video Conferencing, and other APIs individually.

You can subscribe to all of them, some, or just one. You only pay for the channels you need with a lower risk of wasting your budget on those from which you don't see ROI. With UCaaS, you generally don't get this flexibility and must pay for bundled plans.

Simplicity vs Depth

UCaaS solutions are applications that come ready to use. The initial setup might require some time for tasks like connecting business phone numbers to the platform or importing contacts. However, after this, you can hop on a conference call with your team or field customer calls the same day.

Setting up basic functionality for a CPaaS Call or SMS API could take only a day or two. But, adding channels and their supporting features takes time, especially as implementation complexity increases.

The time investment is worth it for some teams because CPaaS brings customization that isn't possible with UCaaS.

With CPaaS, your features are built directly into your app and can do more than send texts or dial out to mobile phones.

A rideshare company can use CPaaS APIs to connect a customer and a driver in their app, allowing them to chat about pickup details. The company can also send automated texts to the user in the app or via text to inform them that their driver is approaching. If any issues arise, the customer or driver can also contact support in the app.

CPaaS offers capabilities that UCaaS doesn't, like Verification APIs or features for Text APIs that enable two-factor authentication (2FA) across channels.

Vendor Differentiation

The exact range of services offered by vendors varies significantly. No two CPaaS or UCaaS solutions are the same.

Some CPaaS vendors will focus more on messaging across SMS, MMS, and social media without offering voice or video calling, whereas others only provide calling features. Many offer all of them.

Similarly, there are UCaaS vendors that specialize in features for internal collaboration between employees, while other vendors offer stronger external, customer-centric features, supporting use cases like telemedicine, customer support, and distance learning.

UCaaS providers will also vary by platform. One might offer web, mobile, desktop, and desk phone support, whereas others may only offer some.

There are providers with both CPaaS and UCaaS solutions, offering services that overlap or that can be mixed and matched to get the benefits of both.

When Should You Pick CPaaS vs UCaaS?

For some teams, the choice between the two is easy. For instance, companies without an app will likely opt for UCaaS by default.

However, for the others who aren't fully sold either way or who are still a little fuzzy on their use cases, it can be tough to know which to pick.

When To Pick CPaaS

For companies that know they will only use specific channels, CPaaS is the better option due to its modularity. UCaaS's all-in-one nature is a strength for some, but not everyone needs omnichannel communication or the price tag that comes with it. Why buy the whole toolbox if you only need a hammer?

If you want communications features built into your app, CPaaS is the clear choice. UCaaS is its own standalone application. Only CPaaS is capable of implementations like the rideshare example discussed earlier. 

When To Pick UCaaS

When a company needs similar communication capabilities without building them into its app or site, UCaaS is better.

If you're using an on-premises UC solution and want to migrate to the cloud, UCaaS is the closest analog and would be an easier transition.

User-friendliness is another reason to pick UCaaS. Since many workers will already be familiar with video conferencing software like Zoom, learning to navigate the UCaaS platform will be more intuitive.

When To Pick Both or Neither

As mentioned earlier, not every vendor offers the same set of features.

You might pick an SMS API to enhance security or a Video API to build conference calls and livestreaming directly into your app while using UCaaS for internal team communication.

Sometimes, neither solution will be the best option for your company.

If you're only focusing on one channel, CPaaS could work, but it'd also be worth looking into providers specializing in the specific channel you want, like Video as a Service (VaaS) or Chat as a Service (CaaS) vendors.

There are Contact Center as a Service (CCaaS) solutions for companies that primarily need contact center capabilities. They work similarly to UCaaS and come with many of the same features, but they specialize in external customer-facing communication.

Frequently Asked Questions

How Do Developers Work With CPaaS and UCaaS?

Developers are heavily involved with CPaaS. They must study the documentation, integrate the API into the app, make sure API calls and responses work as intended, and more.

UCaaS requires minimal, optional work from developers. Devs may need to set up integrations with other apps, but beyond that, IT teams can handle much of the technical work.

Is CPaaS or UCaaS Better for Multi-Channel Communication?

Both excel in multi-channel communication, but there are some key differences in how they do so.

Let’s see how both play out for a digital mental health service platform and an online retailer.

CPaaS is better if these companies want communication functionalities directly within their apps. For example, the mental health platform directly connects patients with service providers via in-app video conferencing, and the retail company provides customer support from the app.

UCaaS is better for more traditional use cases. Patients and their service providers have their video meetings over the vendor’s application. Customers dial support from their phones and connect to agents who answer on the vendor’s app or from desk phones.

Is It Difficult To Switch From One to the Other?

It can be difficult to switch from CPaaS to UCaaS or vice versa. They may overlap in some of their features and the industries that use them, but the specifics of their implementations are quite different.

Both moves would require rethinking the way communications work within the company. Additionally, retaining call logs, message histories, and other records would likely be an expensive and difficult process.

In most cases, CPaaS integrates directly into a company’s app, so moving to UCaaS would involve a total overhaul of the app and the removal of built-in communication features.

Moving from UCaaS to CPaaS requires developers to integrate the APIs into a company app or third-party software like Microsoft Teams. This may involve losing some communication channels.

Which Solution Is More Scalable?

Both are scalable, but they can differ in how they scale.

Since UCaaS is an all-in-one solution, you will pay for every channel, whether you use them or not.

Plan specifics vary from one provider to the next, but if you want more minutes, texts, or phone numbers, you’ll probably need to pay for the next tier of the plan and all that comes with it.

With CPaaS, you get more granular scaling.

You’re paying for specific APIs on a usage basis. If you want more SMS resources, you pay for the messages sent and received, phone numbers used, carrier fees, and possibly other associated costs.

Which Is More Suited for Startups?

CPaaS and UCaaS are both suitable for startups, but deciding which will depend on your needs.

Suppose you want a pre-built solution to facilitate internal communication for remote teams or externally between you and your customers. In that case, UCaaS is likely the right choice because of its omnichannel nature and simple setup.

For businesses with more complex technical needs and where integration directly into your app is a must, CPaaS would be the right choice.

In terms of costs, CPaaS will be cheaper due to its modularity and usage-based plans, but UCaaS vendors offer entry-level plans that are budget-friendly. Regardless of choice, it’s worth looking into providers that offer discounts specifically for startups.