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Now it's Communications as a Service, what next?

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HP has just launched a Communications as a Service (Caas) program designed to enable service providers to offer small and mid-size businesses (SMBs) cloud-based communications services delivered on an outsourced basis and priced as a utility, like electricity.

According to HP, by using CaaS, wireless, wireline and broadband companies can grow the enterprise side of their businesses by providing SMBs with "one-stop shop" outsourcing for four key applications: self-service interactive voice response (IVR) and video surveillance from HP; unified communications and IP contact centers from partners.

Communications service providers (CSPs) should also be able to create attractive bundles that could include any or all of the four "as-a-service" cloud communications solutions, as well as additional solutions from HP or third parties. HP claims that CaaS will attract and retain customers, create steady income streams and, ultimately, increase overall revenue for CSPs and with all the hype around cloud computing just now they may have a ready market.

HP commissioned Forrester Consulting to analyze the "as a service" market landscape and outline the potential opportunity for service providers.  Based on interviews with more than 900 SMBs around the world, the study reached four key conclusions:
  • The addressable market for the four CaaS services is estimated to be at least $6.2 billion by 2014, which reflects a compound annual growth rate of 29 percent.
  • There is a strong demand among SMBs to use technologies on an as-a-service basis. For all four communications solutions tested in the study, 66-75 percent of companies said they will continue using, increase their use or start planning to use as-a-service offerings.
  • One-third to more than one-half of SMBs would buy these as-a-service offerings from telecom service providers.
  • Nearly 90 percent of the surveyed SMBs that expressed interest in these CaaS services want multiple, bundled applications. The components that SMBs want in a bundle varies by service, but some of the most preferred solutions for bundling are email, voice, IP contact center and instant messaging.
Perhaps the most interesting part of the CaaS concept is its usage-based pricing. That could prove to be even more challenging than the provisioning of the on-demand services.

Posted 12-17-2009 5:49 PM by Tony Poulos
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