Telecoms operators have a real opportunity when it comes to providing cloud services to small and medium-sized enterprises, according to the results of new research published on Tuesday, which puts the size of that opportunity at around US$22 billion for operators in the U.K. and in the U.S.
The SME sector is underserved and could prove lucrative for telecoms operators, according to BCSG, which provides a platform to help large organisations, including telcos, deliver cloud services to SME customers. The firm surveyed 500 SMEs on both sides of the Atlantic and discovered that telcos are well placed to benefit from growing deman d for cloud services from small companies.
"Not only is the SMB market a potential goldmine for operators looking to add greater value to customers through service diversification, [SMEs] also present a captive and willing audience," said Tom Platt, commercial director at BCSG.
"It is vital that operators seize the initiative by helping their SMB customers realise the value of cloud services and business applications," Platt said.
Just 31% of SMEs have a cloud migration strategy in place at present, according to BCSG’s survey, leaving operators with a sizeable untapped market. While around a third of SMEs receive guidance from their telcos regarding hosting and business applications, 42% said they get no help at all from their operator.
Many SMEs are still confused about cloud services and why they should adopt certain apps. "Operators have a unique opportunity to provide support and guidance to SMBs and play a significant role in their ongoing prosperity," Platt said.
The survey showed that 43% of SMEs would be willing to purchase cloud services from their incumbent service provider. 40% said they would buy software and tools from telcos to help them grow their business.
Based on that data, and using market forecasts from Compass Intelligence and PAC, BCSG reached its $22 billion figure.
But the picture is not entirely rosy for telcos.
58% of the SMEs questioned said they would switch operator to gain access to a broader range of technology and services, and 52% admitted that they will consider churning in the next two years.
"Long tenure from SMB customers does not imply loyalty, and operators can’t afford to be complacent," Platt warned.
Operators would benefit from broadening their SME service offerings, to drive revenues and customer loyalty, he said.
