SUMMIT
The Opportunity is Out There The top takeaways from the Cavell Summit Europe
There is a “huge opportunity” for selling UCaaS solutions throughout Western Europe according to research from Cavell Group. In the first session of the day at the Cavell Summit, Dominic Black, Director of Research Services at Cavell outlined the trends we can expect throughout the European UC&C market. According to Black, market penetration for Western Europe stands at 37% from a UCaaS perspective, and there is a particular opportunity in France and Germany as businesses begin to migrate communications to the cloud. However, it was not all good news. According to Cavell research, 44% of service providers are seeing a reduction in average revenue per user this year, described as a “big challenge” by Black. “Margins are eroding,” said Black, “we’re seeing that in the enterprise space with Microsoft Teams starting to change the business model for all the businesses and service providers but also we’re seeing a transition to other solutions in the SME who are looking at mobile solutions. “We’re also seeing a big change in the channel which has gone from a resale model to now where we are seeing insufficient sales support, deal registration becoming more complicated, and the margins people make through the channel change as well which is putting pressure on the channel.” As a result of this pressure, Black went on to say that a major trend Cavell has picked up on is the introduction of new services that resellers are offering. Nearly two-thirds (62%) of resellers selling voice services are diversifying their portfolio in order to make the business more resilient. According to Cavell, the most popular services sold alongside UCaaS are IT Consulting Services, Network Security, Connectivity, Endpoint Security, and Microsoft services. “The role of the channel has moved from
CONTINUED many at the Summit, as Finbarr Goode Begley, Senior Research Analyst, Cavell unveiled how businesses and service providers are viewing the role of AI. According to Begley, the answer to the fundamental question of ‘Are people adopting AI?’ “the obvious answer is yes,” primarily enabling a more productive workforce as well as for “data management analysis and reducing human error” rather than personalise customer DiversifAIng With diversifying in mind, the ‘Role of AI’ seminar turned into a must see event for a point sale of UCaaS to bolting on other services to the solution,” said Black. “Ninety- two per cent of UCaaS resellers say they’ve started bundling one or more services when they are selling their solution.” The necessity of bundling services was emphasised by Black, who went on to reveal that the proportion of new business coming from competitors is growing. “As part of our research, we’ve been asking ‘where do you get your business from?’ In 2021, 75% of business was won by migrating on-premise solutions to UCaaS. At the end of 2023, just under 50% of new customer are migrating from PBX to the cloud and we’re now seeing much more cloud-to-cloud migration, which means that everyone has to look at how they are going to diversify their product set because everyone could end up with looking the same.”
Dominic Black Director of Research Services
62%
Nearly two- thirds (62%) of resellers selling voice services are diversifying their portfolio in order to make the business more resilient
34
Powered by FlippingBook