5 Ways Cloud Communications Will Grow Your Margins

cloud five resized 600Cloud communications can help interconnects, managed service providers and carriers capture as much as 65% gross margins on the services they deliver. With a network infrastructure and an established customer base this can have a massive impact on the profitability of their businesses.

More than just making service adoption quick and easy, the cloud is changing business models and reshaping balance sheets with strong margin gains and sustainable recurring revenue. So how does it work?


1.     New Services, New Revenue

Cloud communications services like hosted VoIP and unified communications can be quickly integrated into a service provider’s product portfolio to expand the range of services being offered to enterprise customers. There’s minimal cost of delivering the service and no or low capex investment in equipment with the service delivered by a SaaS platform provider. 

2.     A Complete Solution

With the right SaaS platform provider, service providers can quickly and efficiently sell, deliver, manage, and invoice cloud communications services without the upfront costs, resources and time spent integrating various services and OSS/BSS systems.  

3.     No Need to Simply Resell

Private label cloud communications allows service providers to sell new services directly to customers without reselling third party suppliers. When the service provider owns the customer relationship they can build more value in their brand, and retain the relationship and revenue longer.

4.     Oversubscription Model

Service providers can accelerate ROI on their existing infrastructure by maximizing usage on their networks with cloud communications services. The investments they have made in their infrastructure can be monetized efficiently through fully utilizing capacity.   

5.     Customer Stickiness

Any cost of sale made by the service provider can be mitigated by low churn and increased customer satisfaction. By adding cloud communications services to their offering, interconnects, managed service providers and carriers can give their customers the services they are demanding, reducing the need for them to look elsewhere.

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