With Yeastar, Becoming a Telecom MSP is a Massive Arbitrage Opportunity

Recently we wrote about how telecom resellers are becoming MSPs, providing UCaaS solutions on their own, without the need to rely on an OTT provider such as RingCentral or 8×8.

In our discussions with MSPs making the switch from reselling a hardware solution like Toshiba to providing service themselves, they tell us how happy they are. They are making great margins and have much more control over their destiny.

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We just had an in-person interview with David L. Puckett, Director of Business Development at Yeastar and the opportunity just grew in our minds as we spoke.

The company has 100 engineers and recently devoted themselves to taking all their hardware smarts and converting it to software. The result is the Yeastar Cloud PBX which was launched a few months back at ITEXPO. It’s a monster, based on the Yeastar Management Plane or YMP, supporting 100 PBX instances, 2,000 users, and 500 concurrent calls. Each PBX can have a maximum of 500 users.

What really caught our attention was the price. We have been asked not to share specifics but if you compare the cost of a Yeastar system to a typical OTT UCaaS solution, you could pay for a year of hosted in about three months.

A reseller can use the Cloud PBX, add SIP trunks, a server in a data center/cloud, electricity, bandwidth and everything else and potentially charge that the same amount as the SaaS competition. There is a lot of margin to play with here. This can be very lucrative.

In addition to the PBX, there is also a mobile app called Linkus. The system supports PJSIP and SIP forking. There is support for six devices on-premise and three via the cloud. This allows the phones to ring as you configure while also providing call history and recordings.

Users can select the calls to be routed over WIFI or the mobile network, one-number reach conceals the phone number, ad-hoc conferencing supports eight-users. There is corporate directory integration and CallKit support for a seamless iOS experience.

The Linkus client is coming to the PC in Mid-May with a Beta version and they will soon be adding CRM and IM integration as well as Google Contacts and Microsoft O365

A security border controller or SBC is included as well.

The bottom line in this case, really is the bottom line. Telecom resellers perhaps have never had such a great opportunity to make money from selling solutions. The gift of software to the reseller means, not only great margins for the software-PBX maker like Yeastar but for the reseller as well.

Learn more about everything important at MSP Expo May 16-17, 2018 in Las Vegas and ITEXPO, January 29-February 1st, 2019 in Fort Lauderdale, Florida.

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