Previously we blogged about why telcos in the cloud can be ugly. We showed that there are common reasons why they haven’t fully seized the opportunity. First, telcos focus on network ownership rather than the needs of the existing captive customer base. Next, the telco culture can be prohibitive.
Today we want to talk about the good side of telcos in the cloud. The UK and U.S. SMB cloud services market could be worth more than $22 billion to UK and U.S. service providers collectively. Even better, the market is untapped and willing to participate.
There is a massive opportunity for telcos in the cloud – a hungry audience waiting to be engaged exists, but at the same time existing customers are ready to switch and are under threat from competitors. For telcos, there is an urgent need to implement effective action now.
News this week that cloud service provider TierPoint has entered into a definitive agreement with comms vendor Windstream to buy its data center business for a pure cash transaction of $575 million marks continued change for the telco industry.
There is bad and ugly news for telcos – just shy of half of SMBs surveyed recently receive no help from their telecoms operators whatsoever and many are contemplating switching telco operators.
But there is good news – 40% of UK and US SMBs are openly willing to purchase software and tools from operators to help them grow their business according to recent research. Another 31% of SMBs currently have a cloud migration strategy in place – the segment remains largely untapped.