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Telecom Cloud Services for SOHO and SMEs

      The number of cloud services providers are booming: in the beginning, big companies were the only ones to offer this kind of services, but nowadays all sorts of companies compete between them to manage our information by offering cloud computing as the main solution to optimize their clients’ operations.

      According to Statista, cloud computing service revenue from Customer Relationship Management (CRM) will increase up to almost 9 billion U.S dollar by 2016.

      Revenue from CRM
      Source: Statista

      Why this kind of services is on the increase for businesses?

    • Scalability is the main characteristic of Cloud computing services; it means that the client can ask for an increase in capacity.
    • The system cloud can be quickly deployed, launched and configured.
    • It is a cost-saving technology: the client does not have to invest large quantities of money in software upgrades.
    • Technical knowledge is not required to use and update the infrastructure.
    • Cloud services can be easily integrated with other applications, so information can be transferred from one platform to another.
    • With an Internet connection, they are easily accessible from anywhere.
    • Data center are not needed, since all the information is hosted in an online platform, whose security features are really high. They avoid people from accessing the data and protect from peak voltage, data loss, network problems…
    • Among the cloud services offered by the providers, the most used today are:

      Current cloud services

      Source: Spiceworks

      Cloud services: opportunity for TELCOS’ growth

      As we have seen below, cloud services represent a market opportunity. Telcos are aware of this reality and their current business strategies are focused in offering this kind of technology.
      For years now, Telcos have focused on offering technologies which were cutting-edge technology, like Public Switched Telephone Network (PSTN), Carrier Pre-Selection Operators (CPSOs, Voice over Internet Protocol (VOIP) or Carrier Access (CA). However, these services no longer meet the client’s’ needs and they have realized they have to change their service model to increase revenues.

      Integrating cloud services in their business core is the way to modernize and offer the clients what is booming today and what everybody wants. With this technology, they can move up the value chain by incorporating a more state-of-the-art service model. Cloud is a business opportunity to grow thanks to the fusion of computing with networking.

      SMEs and SOHOs: Telco’s aim

      Currently, Telcos have focused on offering these cloud services to SMEs and SOHOs to increase their revenues, since they represent almost the 99% of businesses worldwide and generate more than $200 billion in ICT services. [1]

      Among these services, almost $2 billion are destined to cloud computing to move forward and develop according to the new technological changes.

      SMEs and SOHOs have recourse to such services to improve their mobile connection, task force’s productivity, and to manage costs. It means an opportunity for Telcos of offering them bundle services like web presence, broadband, cloud computing, etc. at a very low price and the possibility to access them on the go and from everywhere.

      Telco bundle services

      In this line, Telcos would offer their services to a larger number of people, instead of focusing in a few big companies.
      In addition, another reason why Telcos focus on small business and individual clients is because they prefer to come to an agreement in a more direct and personal way.

      How to include cloud services in the Telcos’ operating model

      When a Telco decides to offer cloud services, they have to change its business and operating model to optimize their propositions. [2]
      On the one hand, the migration to a new type of service offer is a very long process and it will take time to implement it fully. This is why, all the staff constituting the company, independently from the sector in which they work, have to work together to take the project forward. In addition, the team has to be composed by professionals with a deep knowledge of the field, since very technical and specific services are offered.

      Regarding the infrastructure issues, it will also take a long time since the company need to renovate their technological systems if they want themselves to supply their customers.

      On the other hand, Telcos need to build solid ecosystems with other companies from the ICT field to provide end-to-end services.
      Finally, these services have to be sold in an economical way to differentiate themselves from the competitors.

      How to sell cloud services

      When Telcos decide to integrate Cloud services in their marketplaces, there are many options to be envisaged. On the one hand, big telecommunication companies can develop their own products. However, this option constitutes very high deployment and maintenance costs.

      Another option is reselling these cloud services, so the investment is lower. Its main downside is that there is a very big competence between the cloud services providers existing in the market.

      They can also select the services offered by Independent Software Vendors in order to improve their market niche. These ISV use cloud storage provider’s API allowing resellers to install and integrate the applications they want.

      Then Telcos can choose between offering them with the original brand or like white-labeled cloud services. They sell the products under their own brand, but actually they provide from third-party cloud providers. This way, they can decide how to commercialize these products.

      After deciding which strategy must be followed to include the products in their marketplaces, they must take into account that the major opportunity for them lies in customer’s retention and loyalty. This is achieved with a dedicated support system during the whole products’ sales and integration process, as well as hypothetical future problems.

      [1] Connectedplusshow
      [2] Pwc

      Categories: Cloud brokers, Telecom Companies, White Papers
      Nerea García

      SEO Translation, social media strategist and web content writer-editor. "Without translation, we would be living in provinces bordering on silence" – George Steiner.

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