We’ve written about softswitch replacement and migration, but it’s not all about rip and replace. Another use case for a business communications platform is to power new business VoIP and unified communication services (what some call white label cloud PBX).
While cloud PBX—also called hosted IP PBX, IP centrex, UCaaS— has been a market offering for nearly 20 years, some providers haven’t launched it and millions of small-medium businesses have yet to adopt the service. In fact, Frost & Sullivan expects the hosted IP telephony and UCaaS market to more than double in terms of users from 2019 to 2023. There’s great opportunity for service providers to serve their markets with a modern, cost-effective business offering.
Service providers can leave their current infrastructure in place to deliver legacy voice services, like home phone and basic business lines, but use a new SaaS platform for modern cloud PBX and SIP trunking services. This would work for both an in-region/established footprint or in support of footprint expansion.
Some of the advantages of a cloud communications platform for this use case include:
- Revenue and cost alignment from day one with a success-based SaaS model
- No CAPEX required
- Quick launch with no network to build
- Easy to manage—just add customers, don’t configure boxes
- Effortless scale as customer base grows
While it may look similar to reselling a retail provider’s white label hosted softswitch, it’s not. The technology core and the vendor culture is very different with cloud communications platform, leading to a better experience for service providers (see Why the Cloud Is Better Than Wholesale Hosted VoIP).
The legacy softswitch and cloud platform could co-exist for some time. It could also be step one of an eventual migration to a next-gen platform for a service provider facing end of life for their incumbent platform (see Why It’s Time to Retire Your Softswitch).
As an example, check out Horizon Telcom, Ohio’s longest running independent telco and a regional fiber broadband provider, launching Horizon Hosted Voice. This telco has a softswitch, but opted for a cloud communications platform to launch its new business communications suite as it hit the mark for features, time to market, easy management and cost-effective scaling.
Want to explore this option? Let’s start talking.
