SMBs Will Switch to Traditional Providers for Cloud If Bundled

Results of a new survey will have cloud providers sitting upright in their chairs.

Amdocs, the customer-experience management company, found in a survey of more than 1,300 SMB decision makers around the world, that nearly three-quarters (74 percent) prefer to get cloud-based services from their primary service provider.

Only two in five respondents (41 percent) said they could get a better deal from an independent cloud vendor. About one in three (32 percent) have not asked for or received information about cloud-based offerings from their primary services provider, and another one in three (31 percent) don’t believe their primary service providers even offer cloud-based services. Forty-four percent said they would switch from a third-party cloud services provider to their primary CSP if offered as a bundle with traditional services.

The research clearly identifies an opportunity for communications service providers (CSPs) to capitalize on this fast-growing segment by delivering cloud services and bundling them with traditional communication services. And that could spell trouble for the little guy.

Other survey findings include:

  • Sixty-six percent of respondents said cloud-based services are very important to their business, with 57 percent saying that their companies already take advantage of cloud-based services. Forty-four percent of those who are not yet using cloud-based services are actively considering it.
  • The cloud services SMBS use most are for storage and backup (72 percent), computer networks (48 percent) and office software (41 percent).
  • SMBs engage with three different vendors on average for their cloud-based services requirements.
  • Eighty percent of respondents said they want to receive one bill for all the communication services they consume.

“The research validates that there is increasing need and adoption of cloud-based services by SMBs,” said Ian Parkes, managing director at Coleman Parkes Research, who conducted the research on behalf of Amdocs. “The research identified that service providers are considered a viable and even preferred source for cloud-based services, representing a big revenue opportunity for service providers who choose to capitalize on this. Those who become a one-stop-shop for all SMB communication needs, focusing on what SMBs consider essential such as bundles with cloud-based and traditional services, as well as a unified bill, will be most successful.”

Follow senior online managing editor @Craig_Galbraith on Twitter.

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