Value creation in the channel hinges on the evolution of traditional GTM approaches, broader mindsets and a focus on value added services, according speakers at Cavell’s Enable 2024 event (3rd December, 22 Bishopsgate, London).
“MSPs need to adapt their go-to-market strategy if they want to grow as historic ways of making money are losing their effectiveness,” stated Cavell Managing Director Matthew Townend. "Businesses that are seeing success in the early Microsoft enablement space are those being creative with their wider stack. The opportunity is in thinking broader.”
According to Cavell, partners are witnessing a shift in value creation from their Microsoft offerings. Currently, 40 per cent of revenue breakdown comes from telephony enablement services but in the future MSPs expect this to shrink to 21 per cent.
Cavell also noted that there has been a 30 per cent drop in direct routing prices over the last two years and 40 per cent of service providers are seeing a dip in UCaaS prices.
On the flip side, Townsend expects value added services like contact centre, call reporting, CRM and call recording to account for a rise in revenue share growth from 17 per cent to 46 per cent.
This trend is reflected in Akixi's assessment of the effects of value added services on ARPU with a group of its partners over a four year model. It found that having just two added services will boost annual revenues by over 65 per cent.
Patrick Watson, Head of Research, Cavell, added: “The best way to engage with the telephony enablement market is to wrap around your own services as a full and differentiated solution. This is where you will create value.”
Cavell's research found that a growing number of PSTN telephony users are being onboarded via marketplaces due to the access they provide to customers. Cavell estimates this base to be circa 47.5 million users strong across Zoom (7.8 million), Webex (16.7 million) and Teams (23 million).
There is also an increase in service providers joining multiple marketplaces, observed Watson: “More and more providers want to have a multi-vendor strategy to address different market segments,” he added. “Everyone wants a slice of the pie. This is the overriding rationale we see for the increase in service providers in the enablement market.”