Over 60% of organizations lack the appropriate communication tools for key job functions. And as digital transformation gains momentum, misaligned, one-size-fits-all tools hinder their performance and progress. This is why the demand is shifting toward more tailored communication solutions—with customizations for specific industry workflows and compliance needs. Now, as customers seek to modernize legacy technologies, advances in cloud platforms, AI, and Application Programming Interfaces (APIs) are making verticalization both scalable and essential.
Frost & Sullivan’s recent webinar titled “Verticalized Business Communications as a Growth Engine” sheds light on the critical elements of a successful vertical communications strategy, along with real-world examples and best practices for segments like healthcare, retail, automotive mobility, and manufacturing.
The session brought together the following growth experts:
Elka Popova
Growth Expert and VP of Connected Work, at Frost & Sullivan
Michael Brandenburg
Sr. Product Marketing Manager, Verticals and Programmable Communications, at RingCentral
Randel Maestre
Head of Industry, Line of Business, and Developer Marketing, at Zoom
Malachi Threadgill
Vice President and Head of UCC Marketing, at GoTo
Stewart Donnor
Sales Engineering Manager, at Wildix
Click here to view top 10 strategic imperatives in cloud communication and collaboration services.
During the webinar, growth experts delved into the evolving dynamics of vertical-specific communications tools, applications, services, and solutions. Discussion highlights include:
The Shift from Generic to Purpose-built Communications
Traditionally, enterprise communications were horizontal—generic tools, with little to no room to tailor them for different user needs. They were mostly treated as a utility shared by everybody within the organization. In many cases, designed with just desk-based, knowledge workers in mind. Now, that approach is changing. What we’re seeing is a move away from one-size-fits-all solutions toward more purpose-built, hyper-personalized communications—tools shaped around specific industries, workflows, and compliance realities. As communications become more of a strategic, outcome-driven investment, the focus is shifting toward improving productivity and supporting mission-critical tasks.
- Compliance alignment and integration: Modern communication solutions need to align with compliance requirements across industries and geographies, while also supporting workflow automation and mission-critical tasks. Parallelly, there’s a growing push to integrate isolated tools more directly into business workflows, so users can access them in their day-to-day work instead of switching between disconnected applications. All of this requires close collaboration between providers and enterprises to identify solutions that fit industry-specific processes.
- Evolving workforce realities: Conventional tools were built for knowledge workers, but today, that’s only part of the workforce. Frontline and desk-less workers now make up a larger share, and their needs are different—mobility, hands-free access, tighter integration with operational systems. These are areas where older solutions tend to fall short.
- Customer pain points and buying behavior: The gaps are pretty clear. Over 60% of organizations still don’t have the right tools for key job functions, and legacy systems make it hard for IT teams to adapt communications to specific workflows. That shows up as lost productivity and slower communication. As a result, buying priorities are shifting too—around half of organizations now look for providers with vertical-specific expertise, alongside the usual factors like cost, reliability, and security.
Transformation in Communications & Collaboration Services
- Disruptive Technologies: Failure to operationalize AI
The inability to deploy AI and agentic AI at scale will result in measurable competitive erosion.
- Internal Challenges: Pressure from wallet compression
Without portfolio expansion, providers risk losing share of customer spend.
- Rising Competitive Intensity: Threat of commoditization
The lack of programmability limits differentiation and pushes providers toward low-margin commoditization.
To know more about verticalized offerings in collaboration endpoints and devices, click here.
How Leading Providers Bring Vertical Strategies to Life
What makes verticalization effective is a mix of industry knowledge, flexible developer tools like APIs, and a broad partner ecosystem (hardware as well as software) that delivers personalized solutions for the way a specific industry operates. Across providers, the approach may differ, but the underlying idea is the same: build around real use cases, not just features.
- In some cases, the vertical approach evolved naturally. Early traction in the education segment led to more focused investments. That carried forward to automotive mobility, where both internal expertise and customer demand shaped the direction. Instead of making assumptions, providers engaged with customers, building features around real use cases—particularly for frontline workers—and then extending that approach into areas like healthcare. The result? stronger win rates, better retention, and more seamless experiences, supported by the right customer relationship management (CRM) integrations.
- For others, verticalization has been part of the strategy to win large enterprise The vertical lens helps bring together APIs, integrations, and resources to customize workflows. What’s happening now is the development of a more fine-tuned approach that focuses on innovative capabilities to better serve a wider range of customers.
- Some have focused on aligning their offerings with industry-specific use cases from the very beginning. While early momentum may have come from sectors like education, the same approach extended across industries such as government, healthcare, and financial services. The underlying idea remains consistent: make solutions more relevant by shaping them around how different industries actually operate, rather than relying on a generic model.
- In another instance, verticalization reflects a shift from features and functionality to workflows and outcomes. With AI layered onto capabilities, the emphasis is on repeatable workflows, common queries, and addressing industry-specific problems more efficiently. This transforms the conversation, making it easier for the end customer to see the value—through familiar language and processes instead of technical jargon. This makes solutions easier to absorb, use, and trust.
Which partnership strategies and growth opportunities will help you make the most of this transformation?
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Tipping Points: What’s Making Verticalization More Possible Today?
Verticalization itself isn’t new, it’s been building for a while. What’s different now is that a combination of technological advancements is making it far more practical, scalable, and cost-effective than ever before. The question then is, what has actually changed and why is verticalization becoming a bigger deal today? The answer lies in a few tipping points, from open platforms and AI to changing buyer expectations and workforce realities.
- From enterprise-only to accessible for all: Earlier, with legacy platforms and closed systems, digital transformation was mostly limited to large enterprises that had access to developers, consultants, and professional services. Today, open platforms, cloud services, better internet access, and mobile connectivity have changed that. With APIs and low-code/no-code tools, even mid-sized businesses can tap into the advantages of cost-effective, customizable, and integrated communications.
- Technology democratization and serving the frontline: Advancements in AI and next-gen infrastructure is not only enabling broader access to technologies, but also new ways of engaging different types of workers, especially deskless employees like shop floor workers or warehouse operators. The focus is shifting to delivering the right information, at the right time, through the right channel—making communication more inclusive and effective across every layer of the workforce.
- Realization from both customers and vendors: There’s a growing recognition among customers that many use cases are not horizontal. This means that IT teams must help support solutions for those operational, vertical-specific use cases. On the vendor side, they are responding by making platforms more open and adaptable through APIs, because one-size-fit-all products just aren’t enough.
- Differentiation through specialization: As the industry matures, core capabilities (like Public Switched Telephone Network [PSTN]) are becoming more standardized, and differentiation is shifting toward specialization and vertical outcomes. It’s no longer just about “dial tone”—it’s more omnichannel, spanning messaging platforms, SMS, WhatsApp, and more. Buying decisions are also evolving, moving beyond IT into both front-office and back-office teams. This makes it harder to be everything to everyone, pushing providers to focus, specialize, and build capabilities that deliver more value.
AI as the Catalyst for Verticalization
It’s hard to talk about verticalization without mentioning AI. More than anything else, it’s what’s making these solutions more practical, moving communications from static systems to something far more adaptive and responsive.
- From static interactive voice response (IVR) to hyper-personalization: Traditional IVRs were static— press 1 for sales, press 2 for service—these had to be manually updated. AI changes that. It automatically learns the business, understands context, and handles interactions more naturally. It can route calls, answer queries, and know when to pass to a human. In many ways, it goes beyond verticalization.
- Tackling pain points: AI becomes powerful when tied to specific use cases. In healthcare, for instance, physicians would spend more time on paperwork and administrative tasks than with patients. AI-generated clinical notes completely automate those processes, in some cases reducing documentation burden by up to 70%. That’s a direct impact—less admin, more time for patients.
- Making communication actionable: Earlier, communication data was mostly passively handled: recorded and reviewed after the event. With AI, it becomes real-time and actionable. It can summarize conversations, trigger workflows, and take action instantly. That shift directly links to business outcomes.
Expert’s Corner
“Providers that fail to develop industry‑specific expertise risk rapid commoditization. Vertical strategies, powered by programmability and AI‑driven personalization, now represent one of the strongest avenues for differentiation and long‑term customer value.”
Elka Popova,
Growth Expert and VP of Connected Work, at Frost & Sullivan
- Maximizing operational efficiencies: Missed phone calls have a real cost, especially in sectors like retail or automotive mobility. AI helps close that gap, handling queries, scheduling appointments, and guiding customers across channels. It’s a simple shift, but one that delivers clear, tangible value.
From clinical notes to shop floors to service desks, the real transformation is happening inside everyday workflows, where small inefficiencies turn into real cost, time, and experience gaps. The organizations seeing results aren’t just adding AI, they’re fixing how workflows across teams and touchpoints.
How will you identify the workflows that are ripe for digital transformation in your organization?
Which vertical-specific, AI-first solutions will help you achieve your 2030 growth goals?
