Service providers stand at a crossroads. The convergence of AI innovation, shifting enterprise needs, and the rise of platforms like Microsoft Teams and Zoom are moulding a new set of hybrid work expectations. In two insightful conversations with UC Today, Intermedia’s Mark Sher, SVP of Product Marketing and John Tucker, VP of Product, provide a detailed look into the opportunities and challenges facing communication service providers and the decisions they must make to remain competitive.
Legacy Systems vs. AI Acceleration
Mark Sher sets the tone by highlighting the shifts currently redefining the service provider space. On the one hand, there’s a generational turnover in core technologies; providers are being forced to replace ageing, hardware-bound platforms that no longer meet the flexibility needed for hybrid work, the scale, or the feature demands of modern customers. On the other hand, artificial intelligence is evolving at lightning speed, creating a new layer of pressure to innovate.
“We’re in a once-in-a-decade transformation,” says Sher. “AI will soon be the battleground, and legacy systems just won’t be able to compete.”
The first wave of AI capabilities, which included transcriptions, summaries, meeting notes has already become standard. But what’s coming next, particularly agentic AI that can perform tasks autonomously will further transform business communications. For service providers, this is a sobering call to action and something Intermedia is delivering to its partners today.
From Commodity to Capability
John Tucker pivots the conversation toward Microsoft Teams. Tucker challenges service providers to reimagine their value proposition. With Teams adoption exploding across the SMB and mid-market, providers have an opportunity to capitalize on the platform’s ubiquity. However, many fall into the trap of simply offering “minutes and numbers,” turning their offering into a commodity.
“There are more than 35 providers in the U.S. alone offering Operator Connect,” notes Tucker. “But most aren’t standing out.”
The key to avoiding commoditization is to build higher-value services around the Teams ecosystem. That means integrating voice, contact center, analytics, and business intelligence in a way that lives natively within the Teams environment, and is delivered under the provider’s brand.
Service providers who can embed meaningful, seamless functionality into Teams are not just offering a service; they’re becoming true strategic partners. By retaining their brand’s prominence, they are also cementing their position in the customer’s mind as the technology partner.
Integrations That Matter
One of the recurring themes in both conversations is that not all integrations are created equal. While many providers may tick the box for “Teams integration” or “AI-enabled,” savvy enterprise buyers are now looking deeper. They want to know how well the systems talk to each other, how seamless the user experience is, and how actionable the data being captured is.
“The buyer has become more advanced,” Tucker explains. “They’re looking for presence sync, unified reporting, and meaningful cross-platform analytics.”
Sher echoes the sentiment, emphasizing that real differentiation comes from execution, not availability. As AI and integration become standard across the market, what will set providers apart is the ability to deliver a unified experience paired with operational reliability and strong support infrastructure.
Trust, Support, and Professional Services
Another clear takeaway from both leaders is that trust and support are service providers’ secret weapons. While tech giants may offer extensive feature sets, their ability to consistently support small and mid-sized businesses, especially at a human level, is often lacking. This is where providers can truly shine.
Tucker urges service providers to move beyond transactional thinking. Instead of simply selling services, they should focus on customer outcomes and understand each client’s business goals, legacy infrastructure, and roadmap for growth.
“The landscape is messy,” says Tucker. “The providers who succeed are the ones who can guide businesses through that complexity over time.”
By offering tailored support, professional services, and long-term advisory, service providers can strengthen their role as trusted advisors, something far more durable than a pricing advantage.
Platform vs. Partner
Sher and Tucker agree on a final, critical point. When selecting technology vendors, service providers must think beyond product features. What truly matters is the quality of the partnership—the level of enablement, support, and investment a vendor brings to the relationship.
“Everyone has a platform,” Sher says. “But not everyone wraps it in quoting tools, sales enablement, marketing assets, and migration support.”
Tucker adds that providers must also consider a partner’s pace of innovation. The future is coming fast, and roadmaps are unlikely to remain static. The best vendors will help service providers navigate today’s challenges and equip them to evolve continuously with close feedback being delivered into future roadmap developments.
The Tipping Point
The conversations with Sher and Tucker reveal an industry at a tipping point. The rise of AI, the dominance of Teams, and the shift toward OPEX-based service models all signal a dramatic reshaping of how communication services are delivered and monetized.
For service providers, the message is clear. Adapt and invest in modern, integrated, and AI-powered platforms, or fall behind as new competitors gain ground. Intermedia’s leaders make it clear that the opportunities are vast, but they require decisive action, strategic partnerships, and a relentless focus on business outcomes.
As Tucker puts it, “If you’re still selling speed and feeds, you’re missing the point. It’s about solving problems, delivering value, and helping customers navigate what’s next.”
Watch the aforementioned full interviews with Mark Sher and John Tucker on UC Today to learn how to stay ahead in the next generation of business communications.
