Benefits of Selling SaaS

selling-saas

According to Forbes, the Cloud Computing Market is expected to reach $411B by 2020 and the Software as a Service (SaaS) market is expected to grow at a compound annual growth rate of nearly 16%, growing from $58.6B in 2017 to $99.7B by 2020 (source).

Service Providers abound in today’s marketplace, however it is yet to be seen how many will successfully capture this opportunity and expand their existing offerings to meet the demand for Cloud and SaaS Add-Ons.

SaaS – Software as a Service – is just a fancy name for all of those cloud and software-based add-ons that increase the value of your existing solutions. For example, Unified Communications as a Service (UCaaS) or Contact Center as a Service (CCaaS).

Have your customers and prospects started requesting these new services yet? Have you had to turn down any feature requests? Turn away any prospects looking for a one-stop-shop?

As evidenced by the financial data, contemporary technologies like UCaaS and CCaaS are quickly becoming expectations rather than extras. If you do not yet provide them, you are missing opportunities to grow your business and secure your future.

Adding these new technologies to your existing offering will enable you to:

1. Reach more customers

SaaS add-ons are in high demand. Offering those services allows you to say “yes” to whatever your next prospect may request. The more services you offer, the more customers you will reach.

Not only will you win more customers in your existing niche, these additional solutions will allow you to enter new markets. For example, the Contact Center as a Service sphere is growing rapidly and offers a whole new group of prospective customers.

2. Generate more profit

Any kind of addition to your existing product line opens up the opportunity for more return on each sale. You are making your products more valuable. Best of all, customers are willing to pay for it. These softwares are powerful tools that will improve business and are worth the price.

Expanding your product line is an important step to building your brand. As your customer base grows, your brand will grow too.

3. Future-proof your business

Adopting SaaS will prepare your business for the future in a few ways. First of all, the monthly subscription models fosters a long-term commitment that reduces customer churn. Becoming a one-stop-shop discourages customers from leaving for greener pastures.

Second, in our innovation-obsessed industry, it is important to keep pace with the technological trends and evolve to meet demand very quickly. Adopting the cloud and SaaS is a step in the right direction. Partnering with a vendor of contemporary technologies ensures that you have someone in your camp looking out for the next trends.

This all sounds great, so… Where to start?

We would love to chat with you about your business and how to seize this opportunity. Meet Bicom Systems this fall at WISPAPALOOZA or AstriCon to learn all about the latest technologies and how to add them to your business offering.

WISPAPALOOZA
October 8-12
Las Vegas, NV
Booth #117
Learn more

ASTRICON
October 9-11
Orlando, FL
Learn more

Our first Bicom Systems User Group Meeting will be on Monday October 8th at WISPAPALOOZA in Las Vegas. It is a free event and open to ALL WISPS (you do not have to be or become a customer to attend). Join us from 9:00 to 4:00 for a behind-the-scenes look at VoIP, UCaaS, and CCaaS with networking and presentations from:

– VoIP Marketing Guru Suzanne Urash of CR8 Group who will share her secrets to getting your phones ringing off the hook

– ThinQ, the best kept secret in the carrier space, who will explain how their toolset has greatly increased their partners’ Quality of Service for customers

– Kris Twomey, from the Law Office of Krisopher Twomey and Carol Lisowski, who will speak on telecom compliance and the most recent regulatory issues.

Lunch will be served at noon. Space will fill up quickly, register now at bicomsystems.eventbrite.com.

See you this fall!

A History of Self-Destruction in the Telco Business

In recent years we have seen several providers struggling financially or even closing up shop. Starting with Nortel, then Avaya, next Toshiba Telecom. These were all industry giants with successful products. What went wrong?

Certainly the issues were complex and there were many contributing factors that we will not discuss today. But one overriding point catches our attention as a vendor:

The failure to adjust to meet contemporary market demands.

Innovation is everything. There is no doubt that our industry has embraced The Cloud, SaaS, and other software- and Internet-based technologies with vigor and certitude. The Cloud PBX market is growing at an Compound Annual Growth Rate of 14.9%. The UCaaS market at a rate of 25-30%.

This leaves providers with two choices: adjust to meet demand or get left behind.

telco-trends

Nortel

Nortel was one of the best in the world of telephony; an industry giant. Nortel on-premise systems were well built and long-lasting. The quality of their product is not in question. However with the emergence of the Cloud, the industry as a whole began to evolve. Consumers no longer wanted expensive hardware and physical telephone systems. The advantages of VoIP, the Cloud, and other modern software-based technologies are simply too enticing.

While Nortel did make the initial transition from PBX to IP-PBX and even developed a Business Communications Manager (BCM 50), that was as far as they went in evolving to meet customer demand.

Sadly it was not enough and well, we all know what happened next.

Read our other posts about what happened to Nortel. 

Avaya

Avaya, another industry giant with a solid product, came to the rescue and bought out Nortel. However their success quickly turned to a Chapter 11 bankruptcy. Their mistake was similar to that of Nortel – a failure to evolve with current trends.

The Wall Street Journal puts it best:

“Avaya illustrates the potential pitfalls of buying big, established technology companies at a time of near-constant innovation. Private-equity firms often use borrowed money, or leverage, to buy a company with the hopes of juicing their gains on an eventual sale of the investment. But if economic conditions worsen or the competitive landscape changes, the buyout debt can become difficult to manage.” (Wall Street Journal)

Avaya’s corporate telephone systems worked great and scooping up what was left of Nortel only strengthened their offering, but when VoIP and other internet-based services hit the market the competition became overwhelming.

“The [Avaya] bankruptcy underscores the challenges telecommunications companies face as they transition to software and services from hardware” (Retuers)

Toshiba Telecom

Along the same lines as Nortel and Avaya, we can all agree that Toshiba’s telecom products were stable and functional. The issue has never been about the products themselves, but rather their failure to adjust according to market demand.

To be fair, Toshiba did make attempts to evolve with the industry, but unfortunately it was too late. By the time Toshiba released an IP product, the cloud was already beginning to trend. Despite their best efforts, it was just too late to catch up.

Read more in our blog post What Happened to Toshiba Telecom?

We keep seeing this pattern of legacy and on-premise providers either shutting down, going through financial trouble, or ultimately doing a major overhaul and switching to the cloud.

But our concern goes beyond that. These companies failed because they were not prepared to adjust as soon as the cloud hit the market. So the question is – what is next?

Everyone is abuzz about the cloud, but technology is certainly not going to stop innovating now. The cloud is the top technology of today – what about tomorrow?

Success in this industry is dependent on the ability to anticipate future trends and adopt them as soon as – or before – they hit the market.

What about your provider? Do they offer the latest trends? Do they have a plan for the future?

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7 Reasons You & Your Customers Should Switch to Hosted

hosted pbxTransitioning to a hosted model will enable you to sell more, earn more, and enter the future with peace-of-mind.

And you will not be alone – the value of the global Hosted PBX is expected to double from $4.73 billion in 2018 to $9.5 billion by 2023.

7 Reasons You & Your Customers Should Switch to Hosted will take you through the top seven benefits of a Hosted PBX for both you and your customers including more sales, more profits, and a secure future.