Work-from-Home Solutions Can Be Big Business for CSPs

When you as a CSP provide enterprise solutions for home office, you generally achieve a five-times higher margin than by reselling a third-party over-the-top (OTT) product. Moreover, by providing a business or public sector organization with its own individualized home office solution, you can gain more business subscribers with lower acquisition costs and a higher long-term retention.

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Higher Margin

The pandemic is greatly accelerating the adoption of home offices at businesses and public offices worldwide. Unfortunately, a few dominant OTT providers profited from this shift far more than the CSPs whose networks carried their services. But we can change this.

Enterprises are looking for CSPs to provide reliable, secure, scalable and compliant home office solutions from within the trusted telco network.

We’ve all experienced users’ palpable dissatisfaction with OTT solutions. Businesses are looking for CSPs to provide alternatives in their telco networks because CSPs are trusted to ensure reliability, security, privacy, resilience, scalability and compliance. This is one reason why this is an important opportunity.

Another reason: many an organization was frustrated during the pandemic because it could not adapt global services to its own specific home office needs, e.g. to optimize the user experience of its employees and customers or to integrate its own enterprise systems. These unfulfilled needs also translate into an opportunity for CSPs who – unlike global OTTs – are truly dedicated to serving their local businesses and public sector.

CSPs used to do good business with virtual PBX services (VPBX) for business customers. There were vendors providing platforms to realize VPBX products from within the telco network; but most of them have themselves become OTT providers, often forcing CSPs to migrate to their cloud and resell their service, albeit at a much lower margin and without any possibility for differentiation.

Migrating legacy solutions in your CSP network to a vendor cloud often reduces your margin and ability to differentiate your product offering.

In addition to the VPBX, the home office market now also encompasses workstream collaboration (WSC) products. By 2024, analysts expect 20% of large organizations to have WSC. As 50% of users will reside in customer facing roles, conversational platforms for sales and customer care should also be added to the home office mix.

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of large organizations
will have WSC by 2024.

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of users will reside in
customer facing roles.

With our low-code Packaged Business Capabilities for VPBX and WSC, we can help you develop your business case and implement your own, highly profitable home office products.

Composable Enterprises:
An Introduction

This is the first of a series of ECT e-books on the composable enterprise and its significance for CSPs. It introduces you to application composition, the underlying architecture and processes as well as the market opportunities for CSPs.

Estimated Reading Time: 15 minutes (12 pages)