Posts Tagged ‘VoIP’

The as-a-Service partnership as a long-term journey

September 21, 2019

As an XaaS (Anything as a Service) provider, you engage your customers for at least the term of your contract, but your real goal is to keep them with you for much longer than that.

If your billing model is fully or partly usage-based, then not only are you motivated to keep your customers longer-term, but you are also motivated to ensure their successful and increased usage of your product or service, because more usage translates to more revenue for your business.

This is why I like the usage-based billing model. It motivates service providers to provide better long-term service to their customers, whilst it also gives more power to the customers, where they can take their business elsewhere, if they’re not getting the service levels or value for money they desire.

When my company Datagate signs up a new client for our billing solution, we view it as a commitment to a very long-term partnership. Our own charge model is based on a small percentage of what our clients bill, so our success is mathematically linked to their success.

We invest heavily in providing services and support for our clients and the ongoing improvement of our product. I see this as an investment in generating more business for our clients and us, rather than as just an overhead cost. The average Datagate client grows their business by 22% per year and so as long as we keep our churn rate to be minimal (as it is), then our revenue would grow by about 22% each year, even if we didn’t make any new sales.

My recommendation to any business that has a recurring revenue model, is to include at least some usage-based component to your billing, because it will drive better behavior in your client relationships and increased revenue growth opportunities for your business.

Good luck on your XaaS journeys!

MSPs are Trusted Advisers, Solution Aggregators

October 9, 2017

The ever-increasing economy of scale of the Cloud is driving the business computing world towards fewer, larger vendors offering massively scale-able public-cloud platform services, while at the same time also driving a trend towards tighter specialization of on-line applications (“Apps”) that work together to provide integrated business solutions.

Computer media and internet communication concept

The role of the MSP (Managed Service Provider) is evolving towards the following areas;

  • Providing strategic advice and planning for business IT and communication requirements. Helping clients decide on what technologies, platforms and applications are best suited for their needs and which will work together in a coordinated, integrated solution set.
  • Brokering Cloud services – aggregating solutions.  Sourcing, acquiring, integrating and optimizing applications and services to build cohesive, well integrated and economic business solutions.
  • Management, optimization and support of business applications, services and platforms; regardless of where they are located – public or private Cloud.
  • More focus on business processes and the solutions required to support them.
  • Recognizing new adjacent sales and service opportunities, in order to provide more value to clients and thereby maximize potential revenue per client.  For example, many MSPs have recognized that the convergence of phones and computers means that MSPs can extend to providing VoIP, broadband and other traditional telco solutions to their clients – becoming a single point of supply and support – which is increasingly attractive to end-customers.

MSPs are well suited to the role of trusted adviser and solution aggregator, because they typically have a much closer relationship and understanding of their clients’ business processes than the larger telcos, application developers and public cloud providers.

The challenge to MSPs is to recognize and lock in these new recurring revenue services whilst maintaining their own brand & identity, gaining differentiation & competitive advantage – and also keeping their own business complexity down to a minimum.

This is where white-label, cloud billing systems such as Datagate, capable of billing numerous telco & utility services on a single MSP-branded invoice and end-user portal are ideal.  The services, no-matter where they are sourced, appear together on the invoice and portal under the same MSP branding, thereby minimizing complexity and maximizing MSP brand exposure to the end-client.

MSPs that evolve and adapt to this new service-based, knowledge-based environment will be those that lead and win.  Recognizing, locking in and monetizing new adjacent opportunities is key to this success.

Paradox of the Telecom Sector

August 20, 2017

The telecom sector is facing a paradoxical mix of circumstances. On one hand it provides the mission-critical technology platform for innovation, growth and disruption across nearly every industry; whilst on the other hand, it faces enormous changes and disruptions to its own traditional business model and revenue streams, more so than perhaps any other sector.

Furthermore, the average revenue per user, across the entire global telecom industry, is falling every year.

Telco_1

The telecom sector provides the platform for innovation and disruption across nearly every industry, yet faces the challenge of innovation and disruption itself, perhaps more so than any other sector.

Incumbent telecom providers need not be the victims of disruption and reducing revenues in their own industry; they can be the agents of change and disruption, by recognizing (or even creating) shifts in the market, differentiation and moving faster than their competitors to meet the new market dynamics.

Recognition of new trends, agility and speed of execution are critical factors. Reinventing business models, bringing new offerings and services to market must be done in quick time.  A major factor, once new offerings are selected, is how quickly billing systems can be adapted to facilitate new offerings, bundles with new services and pricing plans. Billing is so often the Achilles heel in the telecom world.

Differentiation between Telecom providers can be achieved by bundling complementary or value-adding services or offerings with standard telecom services. This can often be achieved through partnerships with service providers outside the traditional telecom sector.

A significant disruption (or opportunity) for the telecoms sector is its convergence with other on-line service providers.  Telecom services are now being successfully integrated and sold by the I.T. industry, managed service providers (MSPs) and other service sales businesses. Electricity companies are bundling telecom services such as broadband with their offerings. Cloud software businesses are also selling and bundling telecom services.  Phones and computers are now one and the same.

Billing is so often the Achilles heal in the telecom world.

Bundling different yet complementary service types under a single pricing plan, on a single invoice makes it more difficult for competitors to undercut pricing with only a single service type. Service bundling is said to make telecom customers more “sticky” and provide differentiation.

Rather than competing with and resisting new convergent players in the sector, some telecom providers are actively embracing and pro-actively driving this convergence. A prime example in New Zealand, is Spark Wholesale that offers a range of telecom services to its clients, to enable them to sell telecom services under their own branding, giving Spark access to more customers and markets that it might not otherwise be able to reach.

Wholesale telecom providers enable service businesses, such as Managed Service Providers (MSPs) – who have trusted adviser status with their customers, to market and sell telecom services such as broadband, SIP, VoIP and mobile offerings to predominantly business customers.

Telecom resellers require specialized automated usage-billing solutions. Datagate is an agile, white-label, cloud-based billing solution which partners with Wholesale Telcos to get new telecom re-sellers up and running quickly, with billing functionality that integrates with the Telco’s usage data to rate, produce and distribute invoices to their end customers. Datagate can connect to and bill most usage-based services and make it easy for convergent bundling of service types, where multiple service types are combined on a single invoice.

Embracing new business models, new offerings, partnerships, agility and speed to market are the key requirements for success in the telecom sector of this new disruptive, paradoxical world.