As many traditional small and medium business (SMB) channel partners make the transition to the Cloud services model, telecommunication service providers (telecoms) are making a strong bid for the SMB Cloud share, beyond their traditional voice and data service offerings, an upcoming study says.
Facing the continuing prospect of declining average revenue per seat (ARPU) and increasing churn, telecoms see the SMB Cloud as an opportunity for sustained revenue growth and customer loyalty. At the same time, many SMBs are open to expanding their relationships with telecoms beyond traditional voice and data services. Thirty-eight percent of U.S. SMBs say they are willing to purchase IT products & services (including hardware and software) from telecommunications service providers.
A key driver behind SMB interest in purchasing IT products & services from telecoms is the rapid growth of mobile applications.
Leading players such as AT&T, Verizon and Qwest are increasing their Cloud service portfolio from hosted VoIP, hosted email, and conferencing services, to high-end business applications and managed services. Most SMBs already have an account with a communication service provider for communication services; adding cloud applications through the existing account significantly lowers the hurdle for SMBs to adopt new services than looking for a new service provider. Communication service providers may be the comprehensive ICT partners in the coming age of Cloud computing.
Comment from Yuki Uehara, Senior Cloud Analyst with AMI: SMBs with multiple branches and greater smartphone penetration are more likely to expand their relationship with telecoms. This growing interest suggests significant opportunities for communication service providers to be one-stop ICT partners, and to reshape the ecosystem of ICT products and services in the global SMB space. This poses a significant challenge to traditional SMB channel partners, as telecoms bring greater scale, resources and price flexibility. SMBs are attracted to telecoms' abilities to offer superior customer service, flexible billing, and "one neck to choke" for all IT and communications issues. This 'one-stop-shopping' model, coupled with attractive bundling, pricing and services options, will put pressure on traditional resellers to evolve their business models.
AMI's 2010 Worldwide SMB Cloud Service study: Examines the SMB Cloud opportunity in 30+ countries, including SMB preferences for Cloud-based application bundle, price sensitivity and purchase channel preferences. This study also provides comprehensive coverage of SMB adoption of Cloud-based applications, managed services, and supporting infrastructure, including platforms and devices. These studies will provide a roadmap for successful Cloud go-to-market strategies and tactics.
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