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cpaas communications platform as a service services

A Guest Blog from Telestax

CPaaS (Communication Platform as a Service) is growing at an astonishing rate and it’s just the beginning. The escalating volume is being driven by growing transactions from IoT, mobile payments, banking, marketing activities, contact centers, telemedicine and much more. And the benefits are growing too – from increased customer satisfaction and loyalty to increased sales -- all while reducing costs by 30% or more. In addition, continuing technological innovations and developments further contribute to the on-going market growth.

"The voice, text messaging and video CPaaS market is transitioning from a hypergrowth start-up phase to a critical-mass phase. The worldwide market is forecast to exceed $8.2 billion in 2021, driven by enterprise demand for mobile enablement, cloud consumption and differentiated, customer experiences." Mark Winther, Group Vice President and Consulting Partner, Worldwide Telecommunications, IDC

Now is the Time to Make Your Move

CPaaS is revolutionizing how businesses are delivering in-demand real-time communications applications and services -- from call tracking and opt-in marketing -- to live chat, videos and push notifications. Your business customers want to provide the services that meet their customers’ expectations. And because CPaaS applications rely on telecommunications services, most look first to their current service provider to meet their needs.

Sounds great but how do you get there from here?

Up till now the only ways to participate in the CPaaS revolution is to build it yourself or forge a relationship with an existing CPaaS provider. Building your own CPaaS platform is an undeniably expensive and long-term undertaking. And you are already behind. Forging a relationship with an existing CPaaS provider consists of the service provider terminating traffic on behalf of the CPaaS provider and its customers. Sound exciting but the truth is the service provider must share the revenue received from managing traffic with their CPaaS provider partner. Service providers who have forged relationships with the existing CPaaS providers are actually seeing their margins shrinking. This is because the existing CPaaS providers wedge themselves in-between the service providers and their customers, shaving a lot of profit from what should otherwise have been a very lucrative opportunity.

The CPaaS provider business model is built on taking the majority of the profit made from charging the end customer transaction rates for sending and receiving messages, voice and video. Before CPaaS technology, this revenue would have gone straight to the service provider. Unfortunately, today, service providers find themselves negotiating significantly lower rates with the suppliers of this new middleman technology.

There is another choice

It is critical for Service Providers to find new and creative ways to avoid falling victim to the CPaaS “business grab” by offering their customers equal or better CPaaS capabilities – at a lower rate. In other words, Service Providers must become a CPaaS provider themselves. But wait - I just talked about how expensive and time consuming building your own CPaaS solution would be. This is still true. The real answer is CPaaS enablement. This is where you partner with a telecommunications technology company that has a CPaaS platform built and waiting for you. A partner that can CPaaS enable you quickly so that you can participate in and profit by this exciting CPaaS market opportunity. The CPaaS enablement business model complements service provider business models and these partners exist today.

About the Author

Kevin Nethercott is currently the VP Business Development CPaaS Enablement for Telestax. Kevin has over 25 years of experience in launching companies and doing business development globally. His focus has been in the Unified Communications, VOIP and WebRTC spaces. Kevin’s leadership has forged successful strategic relationships with leading companies like Microsoft, NEC, Hitachi, Cisco, IBM, Amazon and NTT. He has forged new and creative business models in global regions such as Japan, Kenya, India, Korea, Spain, Malaysia, Philippines and the US.