Moving from equipment to the cloud is very smart move and something I noticed many vendors at the recent ITEXPO in Los Angeles were focused on doing. Just as VARs and channel partner/MSPs have shifted from once selling hardware to services for the recurring revenue and to offset shrinking margins, I expect many hardware providers to follow suit.
As the trend continues expect prices for services to drop in response to greater supply in the market. Why? Instead of spending hundreds of thousands of dollars on switches, new and smaller carriers can pay as they go without the upfront investment they once needed.
There is at least one DSP resource board company whose name I can’t disclose moving rapidly to the cloud as well. Interactive Intelligence has also made the move and is profiting from the transition already.
It is worth mentioning once again – the cloud isn’t new – there are companies like Contactual, Five9 and others in the hosted contact center space – but now we are seeing once hardware-only vendors taking the plunge and giving consumers more choice as some of these new hybrid players will let you mix and match your premise and cloud solutions.
If you want to learn more, TMC’s Paula Bernier covers the latest BroadSoft BroadCloud news.