Jola Cloud Solutions' Blog

Demand

According to a recent report by Zion Research, hosted voice services are set to grow rapidly over the next few years, reaching £112 billion globally by 2021. Demand from the SME market is growing and they are turning to trusted IT and telephony suppliers for help.

Technology

The cost of dedicated, private circuits for connecting businesses securely to the Internet has reduced dramatically. SMEs no longer have to rely on broadband with best-efforts fix times, fast fibre broadband is widely available and secure, reliable circuits with dedicated bandwidth are available for less than £200 a month in some areas.

Hosted telephony solutions are feature-rich with auto attendant, busy lamp fields, Office UC, Skype for Business plug-ins, Go Integrator, shared call appearance hunt groups, hot-desking and music on hold as standard at the fraction of the cost of managing legacy systems.

Cost savings

Budgets are tight for many businesses so when phone systems come out of contract the ability to pay per seat per month for a hosted solution that includes calls and does not require hardware costs upfront or ongoing maintenance costs is very attractive, especially when supported by their existing supplier.

According to a recent report by Megabuyte.com, BT, Talk Talk and Virgin Media are being outperformed by much smaller channel suppliers who are reporting healthy growth, with profits and share prices on the up.

Some of the larger providers were affected by accounting errrors and overseas pressures and the channel saw high levels of growth from hosted voice and mobile. Of course channel suppliers still buy from carrier wholesale divisions, but continue to win business from their direct sales teams by collaborating with their partners.

What are they doing differently?

Growing with partners

Channel-focussed suppliers are becoming smarter in helping their partners find and close business, growing average revenue per customer and building new margin streams. Resellers do not see them as a threat and so are relaxed about letting them help directly with customers and with lead generation campaigns.

Multi-carrier portals

Channel suppliers have built relationships with all the major networks and suppliers giving partners more choice for their customers. Partners can quote and order internet connectivity with hosted voice seats, handsets and extras as well as mobile SIMs within a single platform. Hosted voice and mobile services have their own management portals, so resellers can provision and make changes giving them the control they need to support their clients. SMEs are not restricted to just one carrier and benefit from the personalised service they are getting from their trusted supplier - supported by their channel supplier.

Competitive offerings

Channel suppliers have crafted competitive bundles, packaging market-leading hardware and software, designed to suit every pocket with clearly defined USPs. They have added service wraps such as training, white label pre-sales support, white label technical support, billing and collateral to enhance partner offerings.

Demand for mobile solutions is escalating and more and more partners are asking about JolaMobile. We put together a blog answering your top 5 questions.

What types of JolaMobile SIM cards are there?

In terms of SIM-size, we offer all the usual SIMs including nano, micro and standard. We offer a range of voice and data SIMs or data-only SIMs as well as multi-network roaming SIMs that pick up the best network available and are designed to be used outside the UK.

Can I have static IPs?

They are coming soon. We are currently trialling static IP SIMs on Vodafone with other networks to follow.

What are managed SIM cards, APIs and CDRs?

API stands for Application Programming Interface and is a set of commands, functions, protocols and objects that programmers can use to create software or interact with an external system. It is a short cut so developers don’t have to start writing code from scratch integrating external systems.

CDRs are Call Detail Records, also known as Call Data Records, which are used to rate and bill calls.

'How can I compete?' is a question we get asked regularly by new hosted voice partners. They understand the value of the market, they have experienced a rise in demand for the product and know the alternative solutions they are up against. We recommend the following;

1 Focus on your USPs

Why do your customers choose to buy from you?

By identifying why existing customers buy from you and how they first became a prospect, you can start to list types of organisations you already have an advantage with. Have you developed an expertise in any particular type of company or sector that you can leverage? This might be a piece of software, an accreditation or just knowledge of how their business runs and how they buy. Also you might be surprised at how willing some sectors are to recommend you to other companies in the same field. 

We partner with companies who are known locally as experts in their field. Customers choose likeminded companies they trust with their IT, who are on hand to resolve issues quickly, should anything go wrong. Companies are also recommended by local trade associations or networking groups they are members of.

We help partners to identify their USPs and focus on uncovering opportunities within their sphere of influence, tailoring solutions to exactly meet requirements. We built our solutions to suit any pocket, with all the features you would expect included in the licence and a few more besides. Optional extras such as hardware, to amplify ring tones in loud environments, PCI & FCA compliant call recording and CRM integration software can be added as required.

2 Support the product

Use the research you have found on competing solutions and your own USPs to sculpt your proposition and promote this on your website. Make sure your staff are fully briefed about the product and have materials to hand when enquiries come in. Support your sales people so they have the knowledge and tools available to demonstrate products and can put together professional competitive proposals. Imagine your materials being reviewed at board level against competing offerings, do they stand out for all the right reasons?

3 Stay close to your customers

Your customers already have a relationship with you. Regularly communicate with your customers so that when they are ready to upgrade their telecommunications you are best-placed to help them make the transition. You need to be competitive on price but your customers already value you beyond supplying a basic commodity. Compelling propositions often include a better solution that meets all current and future requirements and saves them money.

1 Increasing demand

IT companies are trusted suppliers and are seeing a rise in demand for hosted telephony and mobile data from their customers. Cloud-based services fit well with their skill sets and 4G is starting to replace satellite and broadband, especially in areas of poor fixed-network coverage. These new products offer recurring revenues and increased ARPU.

2 Simple propositions with management portals

Hosted voice is contracted usually on a per seat per month basis although bundles with handsets are also available on longer contracts. A large range of features are included with premium licences and options such as call recording, CRM integration and call reporting are easy to add as required. Mobile data SIMs are available on 30 day contracts and come in a range of sizes with bolt-ons as required. White label management portals are available for both.

Adding new products and services to your portfolio can be challenging. What is the current demand? What products should I add? How much will I sell? What price should I sell at? At what margin? Who should I partner with? How do I manage the billing and technical support?

Dealer Model

Many companies start on a dealer model with their chosen supplier to get a feel for demand, packages and pricing. They work with suppliers on marketing campaigns, often taking suppliers with them to customer meetings and using the quoting and ordering tools available. Billing and technical support are managed by the supplier with dealers receiving regular commission/margin share.

Reseller Model

Moving from a dealer to a reseller model provides better control and improved margins, however resellers need to manage their own contracts, materials, billing and support. For those that don’t already have the necessary resource in-house it can be costly and risky to hire and train new staff to support a product, which may never make it to core product status. Using a generic 3^rd party support service is an option but there are set-up costs and you pay for calls by the minute. If your new platform is unreliable or generates early-life calls, the first month charges could wipe out 12 months margin.

Existing suppliers

The most qualified and experienced technical support teams use the products themselves and already support them for end-users of channel partners nationwide. They already operate a UK-based call centre 24/7 and may well offer a white label service.

Voice and data companies can improve ARPU by supplying new products to loyal customers. Research shows that SMEs prefer to buy from existing suppliers, they trust. Until there is sufficient demand to justify investment in support, billing and marketing, the supplier will often partner with a specialist on an introduction and commission basis. Moving from a dealer to a reseller model provides better control and improved margins, however there are billing challenges.

Billing

Billing can be especially problematic for IT companies that want to start reselling fixed, mobile and hosted telephony products. Alongside monthly service charges they will need to process monthly CDRs (Call Data Records), rating each call type and producing itemised bills and variable invoices. It can be difficult and risky to try and adapt existing in-house billing systems and purchasing and managing specialist billing software is not always feasible.

There are some good third-party billing products available, however the set-up fees, monthly standing charge and billing percentages mean the reseller often needs to take several orders before the margin covers the monthly cost of billing.

I hear this phrase a lot when we present the IoT opportunity in partner training sessions. Some partners get fed up of hearing the latest buzz word. They immediately think of smart meters when we reference the predicted 28 billion devices to be connected globally over the next three years. When we get to the part about the worldwide market for IoT solutions predicted to be worth £5.6 trillion, they have switched off completely because they don’t believe they will see a penny of it.

Current opportunities

Other partners in the room are engaged. They have customers connecting mobiles, tablets and routers to 4G already. They are productising satellite replacement services in rural areas of traditionally poor fixed line services and are offering cost-effective 4G replacements. They have customers wanting short-term connectivity contracts for temporary offices on building sites and have customers with recording equipment travelling abroad at a moment’s notice. They have the knowledge and experience in-house to create bespoke solutions, sourcing hardware from multiple suppliers and already have JolaMobile SIMs and Mobile Manager.

Future opportunities

These partners have forward-thinking customers looking to connect other devices such as CCTV cameras and vending machines and are asking about fixed IPs. CCTV customers are asking to view their cameras remotely over the internet in real-time. Vending machines now take cashless payments and can be managed remotely to check they are working. Low stock alerts are sent in real-time. The ability to connect devices to the internet has changed behaviour, increased efficiency and improved the customer experience.

New legislation

On June 15^th, the EU introduced Roam Like at Home (RLAH), allowing EU residents to use their mobile allowances anywhere in the EU.

What does this mean?

There will be no roaming charges when travelling to another EU country from 15th June. Every existing or new contract that includes roaming services will change to a Roam Like At Home contract. New EU rules will cover data services, voice calls and SMS.

Communications (phone calls, SMS, data) made from another EU country will be covered in the national bundle: the minutes, SMS and gigabytes of data consumed abroad in the EU will be deducted from the volumes of the national tariff plan.

Which countries are covered?

All 28 countries of the EU are covered by the legislation; Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovenia, Slovakia, Spain, Sweden and United Kingdom.

New opportunity

This presents resellers with an opportunity to become trusted advisors and experts in mobile SIM management. The mobile networks have created their own zones to include additional countries. Mobile users may still incur overages if they go over their allowances or breach Fair Usage Policies. They will often incur significant, out-of-bundle charges if they roam outside of these ‘Euro Zones’.

Demand

Demand for faster, more reliable internet connectivity has never been higher for business users wanting to work remotely as if they were sat in the office. The reality for many rural businesses is that fibre broadband is not yet available and Ethernet leased circuits are expensive with long lead times. Companies are turning to 4G for both interim and longer term solutions, which creates opportunities for trusted suppliers.

Opportunity

Innovative companies are partnering with specialists to bundle solutions which include routers and devices as well as data SIMs on 30 day rolling contracts.  The challenge for both customer and supplier is one of cost. You need to know in advance how much data you plan to use each month as overages are expensive, but what if they could be managed?