I Am An ISP (Internet Service Provider). What Does The “Cloud” Have To Do With Me?

Square

The “cloud” could be the answer to your problem of falling connectivity revenue.

As a local Internet Service Provider, what does the cloud mean to you? Online services, “the cloud”, is the backbone of internet connectivity and the hub of the growing collaborative market. According to studies from Synergy Research Group, cloud infrastructure has continued to grow over the past few years, with jumps in growth of 46% in the last quarters of the 2017. Total revenue of cloud computing services reached over $13 billion at the end of 2017, a 44% growth from 2016, and exceeding expectations set for the hot rising market. But what does this bed of consumer potential have to do with internet service providers?

As competition drives down margins for connectivity, telecoms from all sectors are being forced to find alternative revenue streams, ISPs included. The potential net neutrality collapse, in the wake of telecom conglomerates gobbling up every crumb of the service market pie they can find, spells huge cost for local providers and consumers alike. Telecom pipe providers are securing every section of the revenue stream, if as an ISP you only provide connectivity services, the barriers for customers switching to another service are very low.
Options such as advertising, suggested by Pradeep Bagera’s thesis ‘Alternative Revenue Sources for Internet Service Providers’, are a viable source of value added revenue, but the promise is limited. Transiting the gap between a content service provider and an internet service provider opens up revenue options from both spectrums, allowing you to remain competitive in the shifting market.

We have established the market exists, and studies suggest it can act as a viable source of revenue, but why would customers come to you when looking for cloud services? Do your customers even want cloud services?

Your customers are eagerly looking for cloud services.

451 Research found nearly 75 percent of customers are willing to pay more for the addition or enhancement of cloud services, with an on average accepted increase of 30% over the base service. Not only is the market soaring, the customers are there to feed it.

And 451 Research didn’t just find customers are willing to dish out a little more cash for some cloud servicing bling, the amount of cash isn’t the deliminating factor, quality is. The value, or perceived value, of an internet service holds more weight in consumer acquisition and retention than pricing model.

You are in an ideal position to be their go-to cloud provider.

Why should customers look to you? Well you’re in an excellent position to serve them. You already provide basic cloud services for them (think email). You regularly talk to the personnel of company IT departments and know who the decision makers are. You have earned respect as an expert on technology matters. You can easily bundle cloud services with other core connectivity services.

What kind of services are ISP customers, such as small businesses, looking for when they come to you? Believe it or not, keeping it simple makes you successful. Enterprise Management Associates found the service market for businesses was a chaotic information sink, with consumers eager but lost in what they wanted or needed to find. Cost isn’t an issue of pricing, but an issue of listing. Most of the pricing discontent cited by businesses stemmed from confusing service models. If customers can’t figure out what to pay for, they won’t.

Making it happen is easier than you think.

Simple doesn’t have to mean barebones, it just means accessible. Implementing a cloud service system, such as HyperOffice, which act as a third party cloud enablement service for internet service providers, implemented into your own backend and operating under your brand, allows for a seamless customer experience and the knowledge that you are in the hands of a trusted SaaS provider, with nearly 20 years of experience.

Bundling email and intranet solutions with other core collaborative features such as file storage and communicative document sharing provides a clear, directed package for businesses without the hassle of a multi-tiered opt-in, opt-out system. The modular nature of HyperOffice’s enterprise suite allows you to tailor this bundled experience to each customer with no loss of generality, all under your own brand.

When searching for alternative revenue sources, why not consider the cloud? The market is growing faster each day, and partners like HyperOffice are here to enable you to reach out and be the best provider for your customers. You can’t always be the cheapest option, but you can always work your damnedest to be the best solution.

Sources:
https://www.srgresearch.com/articles/cloud-growth-rate-increases-amazon-microsoft-google-all-gain-market-share
https://www.researchgate.net/publication/311614480_Alternative_Revenue_Sources_for_Internet_Service_Providers
https://www.forbes.com/sites/joemckendrick/2014/07/19/what-cloud-computing-customers-want-clarity-simplicity-support/#32c649a87368
https://www.cio.com/article/3229129/cloud-computing/75-percent-of-customers-are-willing-to-pay-a-premium-for-enhanced-hosting-and-cloud-services.html

Leave a Reply

Your email address will not be published. Required fields are marked *