Light Reading
Survey finds only 11% of smaller companies would prefer to buy cloud services from their voice and Internet service provider

Telcos Have No Cloud Appeal for SMBs

Light Reading
News Wire Feed
Light Reading
7/5/2013
50%
50%

SAN FRANCISCO -- Service providers that have earned customer trust will enjoy the most success as SMBs move to hosted PBX and other IP communications services. That’s one of the latest conclusions from a wide-ranging Metaswitch study highlighting the risks of complacency among service providers that hope to migrate existing customers to IP communications and cloud services.

Findings include:

  • Trust in service providers is extremely important: SMBs with over 50 employees rated “trusted provider” the most important factor (76%) in the decision to switch to IP communications. The same group rated “better management” and “lower monthly cost” 72 percent each.
  • Microsoft Lync is a switching event: Up to one third of SMBs planning Lync deployments intend to change their communications service provider during the process. (Note: 26 percent of all SMBs in the 50-plus-employee category are currently deploying Lync, while 21 percent already have.)
  • Existing phone providers overlooked for IP: Just 10 percent of pre-IP SMBs would even consider getting information about IP communications from their existing phone provider. Eighteen percent of 50-plus-employee SMBs would contact rival providers directly.
  • IP adopters want cloud services: SMBs using IP phone systems are almost 50 percent more likely to also use cloud services than those using legacy TDM (81% vs. 56%).
  • SMBs prefer to buy cloud services elsewhere: Only 11 percent of SMBs said their preference was for buying cloud services from the same company that currently provides voice and Internet. About 40 percent said their preference was to buy from multiple vendors.

    “We know this ongoing service migration is huge and that potentially millions of SMBs could switch their service provider in the coming two to three years,” said Chris Carabello, Director of Market Development at Metaswitch. “Every customer has a perception about their existing provider and the capabilities of the competition, which is why it’s so important and time-critical to get that service right and go to market with the best proposition.”

    The Metaswitch 2013 SMB Survey was conducted this spring by independent firm Inzenka, as part of the ongoing MarketVisions program. Metaswitch MarketVisions incorporates research, training, collaterals and community engagement among service providers to help them drive more effective go-to-market programs and sales support activities surrounding business IP communications, UC and cloud services.

    Metaswitch Networks

    (2)  | 
    Comment  | 
    Print  | 
  • Newest First  |  Oldest First  |  Threaded View
    ccarabello08
    50%
    50%
    ccarabello08,
    User Rank: Light Beer
    7/15/2013 | 2:40:03 PM
    re: Telcos Have No Cloud Appeal for SMBs
    Good observation. In some cases Lync is being offered by a competing communications service provider who is bundling a new data, voice, and ISP service solution with Lync for the customer.

    Particularly downmarket, the trust relationship with the service provider is not as deep. Being privy to the research, 33% of the <50 employee segment are changing service providers, but only 22% of the >50 employee segment
    nuker
    50%
    50%
    nuker,
    User Rank: Light Beer
    7/5/2013 | 8:05:03 PM
    re: Telcos Have No Cloud Appeal for SMBs
    Trust takes a long time to build. I am surprised that even though trust in a communication service provider is extremely important, a Lync installation would drive switching of the provider. Either that trust was not deep or the Lync installation takes a very long time.

    What other factors cause this ?
    Flash Poll
    From The Founder
    It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
    LRTV Documentaries
    EE: The Road to 5G

    12|16|14   |   16:02   |   (1) comment


    Andy Sutton, the principal network architect at UK mobile operator EE, explains how his company is using Wembley stadium as a wireless test bed and how that's helping EE to plan the evolution to 5G.
    LRTV Huawei Video Resource Center
    Highlights of Huawei's NFV Open Cloud Forum 2014

    12|16|14   |     |   (0) comments


    Huawei hosted its inaugural NFV Open Cloud Forum during the SDN & OpenFlow World Congress 2014 in Düsseldorf, Germany. The Forum brought together technology thought leaders, senior executives and telecom professionals from global carriers, industry associations, as well as other partner companies in the ecosystem, to exchange views on and collectively explore how ...
    LRTV Custom TV
    Realizing Operators' Digital Vision

    12|16|14   |   5:23   |   (0) comments


    Leveraging technology is fundamental to digital transformation but understanding customers and serving them really well is at the heart of digital businesses. TM Forum lists the following as the strategic pillars of the digital business: business agility and rapid innovation, operational agility and effectiveness, IT and data centricity, plus customer centricity. ...
    LRTV Documentaries
    US Cellular Injects Analytics Into LTE

    12|16|14   |   2:57   |   (1) comment


    US Cellular's Mario Vela explains how the operator uses analytics for network planning and what comes next as the carrier looks to eke more value out of its metrics.
    LRTV Interviews
    How Cox Biz Plans to Keep Growing

    12|15|14   |     |   (1) comment


    Steve Rowley, SVP of Cox Business, details how the third-biggest US MSO intends to boost its revenues to $2 billion and beyond over the rest of the decade
    LRTV Huawei Video Resource Center
    Interview With Bill Zhang, Director of SoftCOM Product Management, Huawei

    12|15|14   |   2:50   |   (0) comments


    Bill Zhang elaborated on Huawei's open philosophy in NFV solution development and network architecture design at the SDN & OpenFlow World Congress 2014.
    LRTV Huawei Video Resource Center
    Event Highlights: Huawei at SDN & OpenFlow World Congress 2014

    12|15|14   |   3:43   |   (0) comments


    Huawei joined the 2014 SDN & OpenFlow Congress as one of the key sponsors and contributors. At the event, Huawei reinforced the openness and flexibility of its network infrastructure strategies, and provided updates on its SDN and NVF innovations. Through participations at the exhibitions, forums and speeches, Huawei encouraged the industry to "think bigger and ...
    LRTV Interviews
    How Cable Biz Services Hit $10B Mark

    12|12|14   |     |   (1) comment


    Cable operators reached $10 billion in annual business services revenues by delving deeper into their vertical markets and expanding beyond the smallest firms.
    LRTV Documentaries
    Mediacom Aims to Test Connected Tractors

    12|11|14   |   05:07   |   (3) comments


    Cable business service provider is taking its services to the 'agribusiness' sector in partnership with farm equipment specialist John Deere and is getting involved in Gigabit Cities developments.
    LRTV Interviews
    TWC Business Looks Beyond $3B

    12|10|14   |     |   (0) comments


    TWC Business Services chief Phil Meeks explains how his unit has reached $3 billion in annual revenues and what its plans are for next year.
    LRTV Documentaries
    AT&T's New Security Strategy

    12|10|14   |   02:36   |   (1) comment


    AT&T's Chief Security Officer Ed Amoroso explains how his company is wrapping virtual security layers around micro network domains.
    LRTV Documentaries
    2020 Vision: A First View

    12|9|14   |   02:25   |   (3) comments


    At the 2020 Vision Executive Summit in Iceland, unique Heavy Reading research shows that comms service providers are optimistic about the next five or so years.
    Upcoming Live Events
    February 10, 2015, Atlanta, GA
    April 14, 2015, New York City, NY
    May 6, 2015, McCormick Convention Center, Chicago, IL
    May 13-14, 2015, The Westin Peachtree, Atlanta, GA
    June 9-10, 2015, Chicago, IL
    Hot Topics
    Vodafone to Ride T-Mobile Back Into US
    Dan Jones, Mobile Editor, 12/12/2014
    1-Gig: Coming to a Small Town Near You
    Jason Meyers, Senior Editor, Gigabit Cities/IoT, 12/17/2014
    Cisco Makes Big Analytics Push
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 12/11/2014
    Gardner's Departure a Cautionary Tale
    Carol Wilson, Editor-at-large, 12/12/2014
    T-Mobile Lights Up 27 Wideband LTE Cities
    Sarah Reedy, Senior Editor, 12/15/2014
    Like Us on Facebook
    Twitter Feed
    Upcoming Webinars
    Webinar Archive