UC Cloud Burst
Posted on 14/03/2014
A perfect storm is brewing that will propel hosted services into a much bigger piece of the overall comms jigsaw, according to distributor Nimans.
“In the past there’s been a small volume of very big opportunities but in the future there will be a large volume of smaller opportunities,” says Group Sales and Business Development Director, Richard Carter.
“By hosting UC in the cloud you are embracing the same benefits as hosted voice,” he explained. “There’s been lots of general demand around UC in the enterprise space for quite some time. We’ve been having chats with resellers about their intent for a while, but the level of discussions and regularity around UC has massively increased over the last quarter.
“The number of conversations about hosting voice and data has gone up ten fold in recent months. I think it’s always been an area that was going to get going but people were initially worried about quality of service and the cost of bandwidth etc. Everything is coming together now to make it extremely viable in the SMB space, a perfect storm you could say. At that point UCaaS will start to sell really well and momentum will continue to grow.”
Resellers should be embracing this sector because there’s clearly a growing market and they risk losing out if they’re not involved, Carter advised. “They should have as many tools in their kitbag as they can, to deliver the best fit for their customers as part of a solution driven sale.
“The reason there’s a market for it is because it’s very flexible and businesses can scale up and down. The mentality of having a data pipe into a business and buying services supplied down it is starting to really snowball. Is hosted going to take all of the market? Absolutely not but it’s going to take a significant percentage.
“One of the other areas that’s held it back is that traditionally there hasn’t been a chunk of upfront profit if a customer is signing on a three-year deal. This doesn’t fit the reseller’s model. He needs his profit to pay his staff.”
Carter feels there are specific market sweet spots resellers should target but the general benefits apply across the board. Businesses that need to scale up and down on a seasonal basis are ideally suited, he pointed out.
“You can make a lot more money selling hosted on a contract but it’s over a much longer period of time than immediately upfront with tin. More and more resellers are evolving and aligning their businesses to take advantage,” he concluded.