Cloud Telephony

The benefits associated with cloud telephony are proven, which is helping to drive the demand for new and innovative technologies. Likewise, challenges continue to emerge for the cloud service provider (CSP (News - Alert)) as price pressures, network infrastructure stress and competitive intensities show no mercy. This recent Guardian report highlights a trend taking place in cloud telephony. 

CSPs that once focused efforts primarily on Infrastructure as a Service (IaaS) are now searching for better ways to leverage their existing data centers and network infrastructure. While infrastructure aspects were the primary focus, the trend is to now look to Software as a Service (SaaS (News - Alert)) utility models. SaaS providers, however, are not traditional CSP competitors. Value-added services tend to be sold over the top and revenue share with CSPs is possible. With the increased rate of penetration, there is also increased price pressure. 

CSPs are trying to combat this through further differentiation, the creation of attractive bundles and the addition of innovative services. As Internet-on-the-go continues to increase, however, CSPs are playing a vital role. CSPs are enabling mobile users to connect to the Internet through WiFi (News - Alert) hotspots. As cloud adoption is being driven from both bottom up and top down within key organizations, cloud telephony is providing a whole new opportunity to streamline applications and control costs. 

For its part, SaaS provides a lower-cost option for businesses seeking to use software as needed, rather than license every application for each device they want to use. Economies of scale are possible with SaaS, as well as a vast array of experience. SaaS providers are already managing large data centers that service their current clients. As they learn more on how to improve their businesses from this experience, the resulting benefits are passed down to their customers. 

To fully leverage the capabilities and benefits of cloud telephony, the rapid deployment of new services on mobile devices must be enabled. Priority must be placed on Web 2.0 technologies, open platforms, the ability to attract and keep developers and the build out of the right applications to support the growth in mobile demand. 

CSPs want and need to be able to embrace the mobility aspects of the cloud, which demands the ability to work across multiple devices and quickly adapt to new ones as they enter the market. This strategy needs to then be combined with a proven business model so that both developers and service providers make money. One way to embrace this new strategy is to leverage opportunities in the small- to medium-sized business sector. 

CSPs can adapt to these changes and look for new revenue streams with lower risk. And, since the SMB sector tends to be underserved, a solid cloud telephony provider could meet a significant need with corresponding revenue and profit opportunities.

Edited by Juliana Kenny