Intermediaβs Mark Sher, SVP of Product Marketing, and John Tucker, VP of Product, break down the biggest challenges, and opportunities, facing service providers today.
From AI disruption to Microsoft Teams integration, itβs clear: the rules of the game have changed, and those who adapt fastest will win.
AI Meets Legacy Tech
According to Mark Sher, service providers are caught in a βonce-in-a-decadeβ inflection point. A convergence of outdated hardware platforms and the rapid emergence of AI as a foundational technology.
βAI will be the new battleground,β Sher says. βLegacy solutions simply wonβt have it, and customers will expect it.β
Sher warns against falling into the βboiling frogβ trap β sticking with extended legacy systems while competitors race ahead with modern, AI-native platforms.
Customers are no longer just impressed by AI-generated meeting notes and transcripts β they expect it. And as agentic AI begins performing real-time tasks and decision-making, the performance gap between legacy and modern systems will widen dramatically.
The Differentiation Dilemma
John Tucker expands the conversation by diving into another hot topicβ¦ Microsoft Teams. While Teams is widely adopted, many service providers are getting boxed into commodity offerings β delivering βminutes and numbersβ without true differentiation.
βThere are 35 to 40 providers in the U.S. offering Operator Connect β very few are standing out,β Tucker explains.
He encourages providers to look beyond connectivity and instead position themselves as business solution partners. That means integrating voice, contact center, collaboration, and analytics directly into the Teams environment in a way that aligns with the customerβs brand and workflow. These arenβt optional extras anymore β they are high-value components of a seamless user experience.
Small and mid-sized businesses want simplicity. They donβt want to juggle five different tools for communications, support, and customer engagement. Providers who embed advanced capabilities into Teams β with intuitive interfaces, rich features, and consistent branding β will stand out in a sea of sameness.
The key is to treat Teams not as a threat or a product to resell, but as a launchpad for innovation. Itβs not just about integration β itβs about delivering outcomes.
Integration, Support, and Strategic Partnerships
Both Sher and Tucker agree. Successful providers wonβt win on tech alone. Theyβll win by wrapping powerful, easy-to-deploy go-to-market support, customer service, and professional services around their offerings.
βGreat platforms are just the start,β says Sher. βYou also need quoting tools, sales support, marketing campaigns, and a partner-first approach.β
While many providers claim to integrate with Microsoft Teams, the depth and quality of that integration are often lacking. Todayβs IT buyers are savvy β theyβre looking beyond tick-box features and evaluating business outcomes. Can you unify presence indicators across platforms? Do analytics and transcription data flow seamlessly into one reporting structure? These nuances matter.
Adapt or Be Outpaced
Whether itβs evolving business models from CAPEX to OPEX or finding the right partners to navigate a fast-changing landscape, service providers must make bold decisions now.
βItβs not about what you can do β itβs about what you should do,β Sher emphasizes.
Tucker adds, βInnovation and support are what will get you to your next milestone.β
You can watch Mark Sherβs interview about why service providers must rethink everything in the age of AI here.
Also, click here to see our discussion about Microsoft Teams for Service Providers with John Tucker.