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Cloud Conundrum

Posted on 02/04/2013

The majority of resellers are embracing Cloud communication but many face a conundrum about which specific route to take. Richard Carter, Group Sales and Business Development Director at Nimans, says it’s not a question of ‘if’ or ‘when’ but ‘how’ they can maximise revenue and exceed customer expectations.

“Recurring revenue is the key to The Cloud,” said Richard. “The cost of bandwidth and quality of service is coming down all the time making SIP trunks and hosted much more viable. From a reseller perspective they need to join the party because if they don’t they will be missing out on chunks of business. Certainly a percentage of business is going hosted it’s just a question of how much.

“At the moment a lot of end users especially in the SMB space, are not aware of the possibilities. When they do become aware it’s the flexibility that will appeal to them and accelerate demand. Charging methods are the biggest difference as companies do not have to make the same traditional upfront investments they used to. There’s no CAPEX and they can flex up and down based on a fixed monthly cost.

“For any company, the flexibility of knowing its monthly staff costs is critical. For example they know that an individual member of staff is going to cost say £3,000 per month in wages, £300 for their car, £50 for a mobile phone and potentially now £15 for their desk phone. In comparison, £15 per month doesn’t seem that much for an essential business tool. But for a reseller it can be a great profit generator.”

He emphasised: “Once a reseller is providing hosted they are generating regular revenue and in most cases are providing the pipe into a business so getting money from that .You can put other services down there such as video as a service creating a virtual meeting room that can be accessed via lots of different devices. It’s another recurring revenue model so suddenly everything starts to snowball.

“Then the reseller has the possibility to collaborate with other partners (if needed) because if they are putting the voice in then it makes sense to put in hosted Exchange or hosted Lync. The future is moving away from having technology on site that needs to be looked after, it’s to buy it in the Cloud.”

Carter continued: “Our resellers are not blind to this. The vast majority are actively right now deciding what is the right solution for them going forward. They may have a solution at present they are not happy with; they might have tried something they weren’t happy with or they may have put in their own platform and realised it’s too much like hard work so they are looking to outsource. Nimans is also looking to introduce its own platform and continue to partner with experts in their fields.

“We are currently shipping thousands of end points into the enterprise space where hosted is strong. SMB is a growing market. That day will come. Personally I don’t understand why figures for hosted do not yet appear in the MZA market research statistics. It’s going to be interesting to see what percentage of the systems we sell will be hosted this year. Video, voice and call recording are some of the ideal solutions resellers should be considering to offer via The Cloud.”

eCommerce by: Cohesion Digital