Move or Lose, Cloud Communications and UCaaS

For many Channel partners that have come from the traditional PBX markets there is sometimes a reluctance to embrace a true cloud UCaaS platform and integrate it within their portfolio of products. Although many have adopted cloud, the hardware option in their product set may often be the preferred sales pitch. There are many reasons why.

Concerns over data and platform security have often been cited, the reassurance of a physical box in situ has been more appealing to some than its virtual equivalent. Management of a cloud platform and its often radically contrasting billing models also appear to have proved daunting for segments of the channel. As usual though it does appear that the main factor which deters some partners is the bottom line. Will I make as much money from a cloud solution as I do currently from my preferred on premise offering? All of these concerns, and more, can be allayed with the correct solution and adequate planning. As well as quashing the concerns, the correct UCaaS solution can also offer much, much more to end customers in terms of functionality and service.

"Everything is moving to the cloud, if you aren't moving and getting involved then those traditional revenue sectors are diminishing. A number of PBX vendors have pulled out of the market. It's about ensuring your business has long term sustainability."

Dave Dadds CEO of VanillaIP was one of the early adopters of cloud communications platforms, so understands well the potential pitfalls but also the huge opportunities the cloud represents.

VanillaIP is one of the UK's premier cloud communications providers with their primary proposition being Uboss, from which they support a number of different Apps via API’s including BroadSoft's Hosted PBX solution. They have had great success in the UK market providing white label Cloud solutions to the UK channel and enabling partners to succeed with Cloud solutions.

"The great thing about cloud and UCaaS solutions is that there is a much bigger opportunity for margin and product mix than there ever was with the traditional Telco market for both our partners and ourselves."

Despite the huge opportunity the cloud represents Dave fully appreciates the various factors that might deter a traditional on-premise specialist from making that leap to a cloud first sales focus. Existing commission structures, legacy stock, internal processes and procedure, and potential confusion over cloud offerings can all be factors. Changing the model of the business though is often the most daunting aspect. A change of model is undoubtedly required to make the most of new solutions.

"As a service provider, trying to assist partners in that process and showing them how money can be made, and very good can be made is crucial. But then, them having the time and desire to change over is key and as long as they are in that frame of mind then they can make a success of it"

As well as converting traditional hardware suppliers and resellers, VanillaIP also assist newcomers to the UCaaS markets.

"Whether it's from IT, mobile, web, whatever area they are coming from, the ones with real drive can see huge revenue generated quickly."

One of the critical arguments, although we are still at a relatively early stage of UCaaS and cloud uptake, is that the Cloud is here and if you aren't offering it as a solution, someone else is. Traditional on-premise system suppliers will have lost business to cloud native solutions. The most illuminating aspect of these sales might also be that the deal was not lost on price. Although always a key factor to any business looking to leverage investment in their infrastructure, price, and the eternal race to the bottom, seems to be less and less a factor within cloud solutions.

"Price is only one element. We say to people what is the cost value? From our point of view its showing people why price shouldn't be your only factor because of all the other things that go around cloud"