1. The market is converging.
Research shows that when companies are thinking about upgrading their internal communications 48% seek advice first from their local suppliers and 55% research the Internet. IT Suppliers are happy to give advice but then either leave it at that or simply refer a supplier they know. With many telecoms dealers and resellers starting to get into online backup, managed IT and hosted desktop, IT Support companies risk recommending competitors to their customers.
2. Propositions are simpler.
Ethernet leased lines are cheap as well as being quick and easy to install. Moreover they are much more reliable than broadband. Only around 10% of SMEs are using VOIP (Voice over IP) but it is the fastest growing communications product in the UK. There is no equipment on-site except the handsets, which are often included in the rental. Voice calls are often also included in the monthly extension price.
3. Recurring revenue.
Long-term contracts can be a double-edged sword. On the one hand they offer solid recurring income but can be a risk if their customer fails and you have back-to-back contracts with suppliers. The solution is to partner with business communications companies that will bill the customer, take the risk on the contract and pay a guaranteed monthly commission.
4. The cloud.
The main reasons UK SMEs lag most other countries in cloud adoption are connectivity and security. With the price of dedicated leased lines plummeting SMEs are looking to trusted suppliers to ensure the security of their application and data in the cloud. IT Support companies are ideally positioned to fulfil this role.
5. Mobile is changing.
The trend in the consumer market towards SIM-only airtime contracts is starting to creep into the business world. This opens up the market for IT Support companies that have traditionally avoided mobile networks, handsets, 24-month contracts and mucky minutes. Simple SIM-only propositions are emerging offering monthly contracts with free calls, texts and data bundles.
