Increasing competition from over-the-top (OTT) providers, and the fact that customers expect high-quality, attractively priced services, cause telecoms to search for new revenue streams. In order to generate revenues from new sources, communication service providers (CSPs) have to create true added value for their customers. Low-priced packages of voice, text and data have already become the basic minimum and the expected norm in the market. In order to remain competitive, telcos have to expand their product portfolios. To do this, they are turning to cloud services.
Cloud technology has been growing in importance for quite some time now. With clear advantages in terms of business efficiencies, cost-benefits, scalability and easier access, cloud-based offers are also becoming more popular in the telecommunications industry.
Cloud-based offers are more than just a new revenue stream for telecom companies as resellers. They are an opportunity to offer true added value to private and business clients. Cloud services provided by the telecom industry enable their customers (in the B2B and B2C segments) to use cellphones for several non-voice purposes such as retrieving information, e-commerce, backup and invoicing.
Micro, small and medium-sized enterprises often struggle with repetitive daily processes which can be easily and cheaply improved with cloud services. Using the cloud saves the high initial expenses of building systems and purchasing infrastructure. Undoubtedly, telecoms’ strengths such as their huge network infrastructure, proximity to customers, and service competence create a competitive advantage for CSPs as cloud service providers.
However, the risks and challenges related to adding this kind of offer to their portfolios might seem too high for some telecoms. Introducing a completely new kind of service requires a change in attitude and strategic thinking, as well as openness to cooperation, often with recent competitors. It is also crucial to prepare appropriately for the move; finding a trustworthy partner and assessing available resources for investment are two important parts of the process.
Adopting the white-label model is an increasingly popular strategy that can help telcos expand their offer to include cloud solutions.
White-label branding, also known commonly as white-labeling, is a marketing and manufacturing practice in which a product or service is produced by one company and then rebranded by another to make it appear that it is their own. Often, though, more than just the appearance changes.
A comprehensive white paper from Comarch outlines how CSPs can add true value with cloud services. Download here.