The future of Enterprise Comms is simple: use local and trade worldwide. Here is what the next is
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In a world where Enterprises now manage their Unified Communications (UC) platforms, such as Microsoft teamsWorldwide, why are these same companies all too often still purchasing telecommunications services and managing them on a country -specific or regional basis?
There would certainly be material efficiency and cost savings for the consistent worldwide management of all communication – a real ‘uniform’ approach – instead of the inconsistent and inexpensive management of Telecom?
The answer lies in the inheritance – and indeed current – company Models and chosen strategies of the large telco’s. And the solution lies in a new breed of multinational cloud telephony providers.
Co-CEO and co-founder at LoopUp.
Telecom: A fast restructuring industry, after pandemic
The modern telecommunications industry has been restructuring in pace since the pandemic, because it performs itself again to serve the requirements of remote and hybrid staff and teams in the modern workplace. The big telco’s may have led the first restructuring dimension, but they reluctantly participated in the bandwagon of the second, and their wider business model is simply not suitable for the third.
From building to the cloud
To be honest, the large telco’s were at the forefront of the first restructuring dimension of the industry – the shift of implementations from On -buildings to cloud -based business telephone systems. In this shift, Telecom was essentially simply delivered a different form of data service about fiber and 4G/5G broadband network that they have provided themselves. This was perfectly in line with their wider strategies such as network operators.
From crucial importance, moving services to the cloud enabled users to make phone calls and to receive where they had internet access, whether at work, at home or on the road. Their telephone numbers were able to travel with them instead of being bound by a physical desk or location. Moreover, companies could remove the old switches and equipment from their offices and locations, which releases the time and costs of supporting, upgrading and replacing that equipment.
The reason for both users and companies was sufficiently strong that 71% of the telecom market had shifted to the cloud by 2024.
From self-employed to UC integrated
The second restructuring dimension fitted much less with the large telcos. But in the end it was inevitable because of the customer’s question. This shift included the integration of telephony in wider UC platforms, such as Microsoft Teams.
Out-of-the-box teams are incredibly rich messages, channels, meetings, video calls and much more but telephony is the missing piece that needs specific and extra integration.
More and more companies have understandably done this integration to achieve ‘really uniform’ communication, both from a user experience and IT -Management perspective. Moreover, this also means that telephony content can be included in the AI data set of the Enterprise for fast-growing agent options such as Copilot.
This shift to UC-integrated telephony teams was by no means popular with the large telco’s, since a significant part of the added value was provided by Microsoft through his Cloud -telephone system Functionality.
The ability of Microsoft to make money through license extensions has effectively reduced profitability for the large telco’s. In the end, however, the customer demand won and now more than a hundred telco’s have joined the bandwagon on Microsoft’s Operator Connect and direct routing programs.
From geography-specific to global
But now a third restructuring dimension is quickly recorded in the multinational enterprise world. Until recently, multinationals have necessarily worked with multiple vigils of dozens of country-specific or regional telco suppliers, each with their own contracts, tariff structures, administration portals (if indeed at all), support services and invoices.
But why would these multinationals want to keep such a regional patchwork from Telco suppliers if they now manage a unique, global basic teams? They not only want their telephony to be integrated with their UC platform, but they also want the management of the entire communication stack to be consistent worldwide. Why do you have dozens of telco suppliers if you can just have one?
Enter a new breed of multinational cloud telephones providers
Global services, however, is simply not suitable for the large telcos, because now, mainly as broadband providersTheir companies remain physically in nature. What was once copper threads in buildings for Telecom is now fiber in buildings for broadband, and the physical natural of that ‘last mile’ compounds is simply not conducive to a global strategy.
It is this defense against the large telco’s, combined with the size of the market opportunities in Microsoft Teams Telephony, and the compelling business case for customers for multinational consolidation of suppliers, which led to a new varational cloud telephones providers.
These multinational cloud telephony providers all the restructuring of the industry record: cloud-based, UC-integrated and multinational services. With one worldwide supplier, multinational companies can avoid inefficiencies, wasted resources and fragmentation of working with multiple telco’s in different regions and go to a simplified world of one worldwide contract, one worldwide rate and one worldwide management portal.
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