& cplSiteName &

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        ADD A COMMENT
    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 ?
    From The Founder
    The independent evaluation of Nokia's key virtual network functions (VNFs) was a defining moment for the Finnish giant.
    Flash Poll
    Live Streaming Video
    Charting the CSP's Future
    Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
    Between the CEOs
    CEO Chat: Cisco's Yvette Kanouff

    6|28|16   |     |   (0) comments


    In Silicon Valley, Steve Saunders sits down with Cisco's Yvette Kanouff for an exclusive in-depth interview.
    LRTV Interviews
    Comcast: Prepping Next-Gen Video Services

    6|28|16   |     |   (0) comments


    In this LRTV interview, Comcast's Elad Nafshi outlines where MSO stands with cloud DVR, OTT video, college and gigabit services.
    LRTV Custom TV
    Energy 2020: Creating Unique Standards for Cable's Unique Networks

    6|28|16   |   09:30   |   (0) comments


    Cable's unique network requirements require a specific set of standards for operators to increase power efficiency, according to Dan Cooper, vice president of critical infrastructure for Charter Communications and chair of the SCTE/ISBE Standards Program's Energy Management Subcommittee, and Ian Oliver, managing director of the Trenchant Group and a member of the ...
    LRTV Custom TV
    Masergy: 'Now Is the Time for NFV'

    6|28|16   |     |   (0) comments


    Hear Ray Watson, VP of Global Technology at Masergy, talk about the advantages that enterprises can leverage using Network Function Virtualization (NFV), and how Masergy takes a unique approach to solving customers' problems. For more information on Masergy, please visit www.masergy.com.
    LRTV Custom TV
    Masergy Leads the Charge With NFV Capabilities

    6|28|16   |     |   (0) comments


    Hear Tim Naramore, CTO at Masergy, talk about how focusing on solving specific customer challenges, providing self-service automation tools and being laser focused on the customer experience has enabled Masergy to be a leader in the NFV space. For more information on Masergy, please visit www.masergy.com.
    LRTV Custom TV
    Private Company of the Year - Affirmed Networks

    6|27|16   |     |   (0) comments


    At BCE 2016, Steve Saunders speaks to Hassan Ahmed about Affirmed's success.
    LRTV Custom TV
    Energy 2020: Growing Services, Not Consumption

    6|24|16   |   07:18   |   (0) comments


    Management of power requirements needs to be a key consideration as cable operators deploy new services, says Dan Cooper, vice president of critical infrastructure for Charter Communications and chair of the SCTE/ISBE Standards Program's Energy Management Subcommittee. In this video, Cooper discusses the importance of cable operators and technology partners ...
    LRTV Huawei Video Resource Center
    Huawei & TDC First to Launch DOCSIS 3.1 Trial in Europe

    6|24|16   |     |   (0) comments


    To meet the rising demands for high-speed broadband and to tackle fierce competition for 1.5 million household, TDC wanted to upgrade its network to use the latest technology. Using Huawei's DOCSIS 3.1 solution, TDC is now able to offer gigabit speeds to its customers.
    LRTV Documentaries
    OPNFV Summit: Key Takeaways

    6|22|16   |   03:28   |   (0) comments


    MANO shortfalls, an increasingly bloated open source ecosystem and the cultural challenges for network operators were among the key takeaways from the OPNFV Summit in Berlin.
    LRTV Huawei Video Resource Center
    Bringing Ultra Broadband to the South Pacific

    6|22|16   |   7:55   |   (0) comments


    At Singapore's UBBS 2016 summit, Light Reading speaks to Lim Chee Siong, Huawei's CMO in the South Pacific Region.
    LRTV Custom TV
    Juniper's NFV Platform

    6|22|16   |     |   (0) comments


    A telco cloud is a key enabler for service providers to deliver virtualized services to their customers. Juniper has a differentiated approach with an open and comprehensive NFV platform to build the cloud of the future for multiple use cases.
    Women in Comms Introduction Videos
    Infinera: The Glass Ceiling's Been Broken

    6|22|16   |   4:34   |   (0) comments


    Shannon Williams, an engineer by trade and now the director of sales for Infinera's major accounts, draws confidence from being a female in a male-dominated industry and hopes other women will too as industry dynamics swing in our favor.
    Upcoming Live Events
    September 13-14, 2016, The Curtis Hotel, Denver, CO
    November 3, 2016, The Montcalm Marble Arch, London
    November 30, 2016, The Westin Times Square, New York City
    December 6-8, 2016,
    May 16-17, 2017, Austin Convention Center, Austin, TX
    All Upcoming Live Events
    Infographics
    A new survey conducted by Heavy Reading and TM Forum shows that CSPs around the world see the move to digital operations as a necessary part of their overall virtualization strategies.
    Hot Topics
    'Brexit' Vote Hits BT, Vodafone
    Iain Morris, News Editor, 6/24/2016
    AT&T Settles on LTE for Cellular IoT
    Dan Jones, Mobile Editor, 6/22/2016
    Sigfox Said to Face Customer Backlash
    Iain Morris, News Editor, 6/27/2016
    Qualcomm Readies Lower-Band 5G Testbed
    Dan Jones, Mobile Editor, 6/27/2016
    Google Fiber Buys Webpass in Wireless Play
    Iain Morris, News Editor, 6/23/2016
    Like Us on Facebook
    Twitter Feed
    BETWEEN THE CEOs - Executive Interviews
    In Silicon Valley, Steve Saunders sits down with Cisco's Yvette Kanouff for an exclusive in-depth interview.
    At the BCE 2016 show in Austin, ECI Telecom CEO Darryl Edwards tells Light Reading founder and CEO about the Elastic Network concept and the company's NFV and cybersecurity developments.
    Animals with Phones
    Live Digital Audio

    Our world has evolved through innovation from the Industrial Revolution of the 1740s to the information age, and it is now entering the Fourth Industrial Revolution, driven by technology. Technology is driving a paradigm shift in the way digital solutions deliver a connected world, changing the way we live, communicate and provide solutions. It can have a powerful impact on how we tackle some of the world’s most pressing problems. In this radio show, Caroline Dowling, President of Communications Infrastructure & Enterprise Computing at Flex, will join Women in Comms Director Sarah Thomas to discuss the impact technology has on society and how it can be a game-changer across the globe; improving lives and creating a smarter world. Dowling, a Cork, Ireland, native and graduate of Harvard Business School's Advanced Management Program, will also discuss her experience managing an international team focused on innovation in an age of high-speed change.