Some service providers are still reluctant to use cloud communications platforms, according to the CEO & Co-Founder of Alianza.
He told UC Today that service providers implemented legacy communications infrastructure as far back as 20 years ago, which has made it difficult for them to compete with Over The Top (OTT) providers running cloud on agile and easy to innovate platforms.
Alianza’s CEO believes the number one reason service providers need to move to the cloud is to regain their competitive advantage and differentiate themselves in the marketplace with a broad suite of communication services alongside their broadband assets.
Brian Beutler, CEO & Co-Founder at Alianza, said: “Companies that have owned the telephone infrastructure for over 100 years have a century's worth of pride about building a telephone network, and now the market has changed.
“In a lot of cases, those telephone companies have to give up that control over the switch that is sat inside their network. There was a reluctance to do so.
“Even though they are out telling a story to the market and their customers about why they should ditch their PBX and move to a cloud operating environment, they themselves have had hesitancy to do that.”
Beutler pointed to other challenges the company is facing right now, including the effects of an increasingly saturated market.
Referencing Metrigy’s 2021-2022 global study on workplace collaboration, which found that 47.5% of companies now rely fully on the cloud, Beutler believes this will change the marketplace dynamics. There will be an increased pricing pressure and more competition relating to products.
Beutler believes customers will have greater spending powers, but it will also be more complex as more products come to market, use cases increase, and there is greater vertical segmentation.
Alianza has been on a mission to prove to service providers that moving to the cloud is advantageous.
Beutler explained: “The reality is the cloud operating model is more capital efficient, more cost-efficient, and the total cost of ownership is better.
“That applies to the enterprise and also to the service provider.