It has been a transformational year for the telecommunication landscape. Key trends such as convergence of multi-platform UC, continued support for hybrid work, adoption of AI, and heightened emphasis on customer experience (CX) were indeed paramount in 2023. Looking ahead to 2024, these concerns and others will continue to change the market.
In this blog, we will explore 6 key opportunities for telecom resellers or managed service providers (MSPs) to take advantage of in 2024.
Table of Content
- Digital transformation phasing out TDM
- Every-developing hybrid-first culture with cloud technology
- Convergence of UCaaS and CCaaS platforms
- Artificial intelligence supports better user experience
- More focuses on security, governance and compliance
- The growth of subscription and as-a-service economy
1. Digital Transformation Phasing Out TDM
The digital transformation has been impacting business sectors for years, where legacy phone systems such as TDM are undeniably heading toward an end-of-life. Despite this fact, 61% of participants in one of our recent channel surveys reported that more than half of organizations in their local markets are still using TDM PBXs or unsure how to migrate. This presents a huge opportunity for telecom resellers and MSPs to support businesses in transitioning from TDM PBX to IP-based communications.
By providing expertise in debunking misconceptions that hold users back from the upgrade and offering an easy migration plan, you stand a chance to create a new revenue source while helping clients reduce telecommunication costs and increase team productivity.
2. Every-developing Hybrid-First Culture with Cloud Technology
The concept of a hybrid-first culture is no longer a contingency plan but a strategic necessity as we emerge into a new normal. With the change of mindset and the growing business preference for easing IT with “single-vendor” or “integrated-UC” strategy, we’ve seen a significant uptick in Cloud and hosted UC usage in 2023 and anticipate the growth to continue in the following ten years.
This trend also aligns with the latest report by Synergy Research Group, which indicates that the global spending on “hosted/Cloud UC services has outpaced growth on-premise” since 2022 with a 17% annual growth rate.
For telecom resellers, adding cloud into portfolios will be one of the key strategies to stay at the forefront of growth in 2024. And one step further, providing an all-inclusive cloud communications or hosted UC solution that goes beyond telephony with integrated video conferencing, chat, messaging, and other collaboration functionality will be the key to win customer preference.
3. Convergence of UCaaS and CCaaS Platforms
With customer experience (CX) becoming a new priority for many organizations in the past year, we’ve also seen a growing demand of converging UCaaS (unified communications as a service) and CCaaS (contact center as a service) in a single platform. According to Metrigy, 75% of organizations consider it a must-have to have integrated user interfaces for internal communications and omnichannel contact centers.
They found value in integrating these two platforms in a variety of ways:
- Agent productivity rising with the ability to quickly transfer complicated queries to other non-agent colleagues via the UCaaS solution.
- Improved customer satisfaction with the ability to receive screen pop, escalate chat to a call or video, and more.
- Lower the number of integrations required for other systems such as CRM
- Cost savings by streamlining separate tools into one bill
The “UCaaS + CCaaS” convergence is transforming the way companies communicate, collaborate, and engage with their customers. Leading UC vendors like Yeastar are moving quickly to revamp their UC offerings with added call center and omnichannel functionality. As we move forward, the seamless integration of these technologies will be instrumental in enabling more efficient and productive organizations, and in return, reshape the telecommunications market in the future.
4. Artificial Intelligence Supports Better User Experience
Artificial Intelligence (AI) has become the buzzword in the past two years. And of course, the adoption of AI technologies is increasing in the UC (and contact center) landscape as well. In the years ahead, we may begin to see more virtual assistants included as part of a UC package to enhance user experience and productivity. For instance, use AI-based speech analysis to automatically take call notes, enable virtual chatbot to save on labor, provide customer sentiment analysis to guide sales interactions, and more.
In this burgeoning trend, Yeastar will also be one of the innovators as we are on the road to applying AI to our UC offering, with the goal to further automating sales and customer service workflow for business users.
5. More Focuses on Security, Governance and Compliance
The rapid global digital transformation not only paves the way for innovations in UC and collaboration sectors, but also brings more attention to the security, governance, and compliance issues. According to a report by PSA, almost 75% of businesses look for security credentials when buying products, and they are willing to pay more for it: 69% say they are happy to pay a premium for built-in security.
In this matter, telecom resellers and MSPs should focus more on their offering’s security to help customers streamline IT and safeguard communications in the first place. For example, Yeastar P-Series Phone System employs a multi-layer security design to effectively safeguard business communications, especially in remote working scenarios. From the underlying remote access service secured by Yeastar-managed SBC, 2FA authentication and data encryption, to the adherence to recognized security compliances such as GDPR, ISO 27001, and PCI DSS, Yeastar includes all to help your clients protect their data and communications.
By offering solutions that are built with security, governance, and compliance in mind, you build trust with your customers and are more like to win over the competition.
The multi-layer security design of Yeastar Phone System. Yeastar Cloud Communications Trust Center
6. The Growth of Subscription and As a Service Economy
The subscription-based business model has gained significant traction in recent years. Reports suggest that the subscription economy is expected to generate over $1.5 trillion in revenue globally by 2025, and businesses worldwide are increasingly adopting subscription-based products due to their lower upfront costs, scalability options, regular updates, and simplified maintenance. This shifting customer preferences from traditional CapEX models to OpEx models presents exciting opportunities for telecom resellers to capitalize on.
“70% out of 504 business leaders believe that subscription models hold the key to future growth and expansion in the next few years.”
Source: Manifesto Growth Architects
From reselling converged Cloud Communications (UCaaS) and software-based PBX licenses (SaaS) to upselling value-added features/services to existing on-prem customer bases, the “as-a-service” subscription model can ease the initial sales process by providing better entry-level pricing and allow you to gain a predictable, recurring revenue stream with long-lasting customer relationships and more cross-sell and upsell opportunities.
The business communications market is brimming with opportunities for resellers and MSPs. By staying ahead of the curve and offering your clients innovative and value-added solutions, you can grow your business and gain a competitive edge.
Whether you are a reseller new to the UC market or an MSP looking to expand your footprints and keep up with the growth, Yeastar offers an easy-first approach for you to deliver value and grow sales. With our award-winning UC portfolios capable of both unified communications and contact center, leading open ecosystems, and 100% channel-focused commitment, we meet channel partners wherever they are to make the most of the market potential.
If you need any help or advice on how to leverage these opportunities, feel free to contact us.