1. The industry trends channels should address to be successful
Matthew Townend – Director Research & Consulting

2. Who are we?
Cavell is a “knowledge” business focused on emerging Comms markets, providing Consulting, Research, Training and Technical Professional Services + + +
Supporting businesses to evaluate strategic investments, create sustainable service roadmaps & operating models and executing plans

3. Projects delivered in over 45 countries

4. Our research coverage is expanding
Started research in 2005 as illume consulting
Expanded our research into Benelux
Moved into 5 other territories last year
Took on more capability to expand into a further four countries going forward
Expansion is through customers demand, USA or Asia

5. Themes in the Communications Market

6. Times they are a changing…
“Customer Requirements changing”
“Traditional Markets Revenue Falling”
“Supply chains evolving with new suppliers”
New Markets accelerating
New Disruptive Competition Emerging

7. Key Customer Drivers Stay abreast of technological changes
Starting to value customer experience and not the technology
Customer service and Intelligence key
Everything as a Service
Cloud Based Services prevalent
Digital Disruption & IOT key
International services
Video starting to emerge beyond the meeting room

8. Supply chains evolving
Service Providers & Channel compelled to offer multi-service offerings
Cloud Paradigm means Vendors can go directly to Enterprises or Channels in new Cloud world
Distribution being value add redefined
Channels future differentiation may lay in Service, Vertical Specialization, Integration, Customer intimacy

9. Market Trends & Opportunities

10. The UK Hosted VoIP market has grown to a total of 2.7m seats
Hosted VoIP market has grown by 281,904 seats (11.63%)
Annual growth of 529,962 seats (24.37%), an increase of 4,116 seats compared to the annual growth in 2015.

11. The UK SIP Trunking market has grown to 2.3m Trunks
The SIP Trunking market has grown to a total of 2,347,077 SIP Trunks, adding 233,549 Trunks (11.05% growth) since June 2016.
This is considerably more then at the start of the year where the market only grew by 191,018 Trunks.

12. Trends in Unified Communications
Service Providers selling ‘UC’ to end users has not been successful
Delivering communications in the context of the end user has been more successful for Service Providers
Having a broad set of UC features is only relevant to a small number of users, most consume their communications through one or two key endpoints. UC
The companies who have been successful in Cloud Communication have not been selling UC
In Cavell’s experience, the Cloud Communications providers who have been successful have understood the context of their customers business and delivered a solution that is in that context.
Vendors and some Service Providers sell a solution that targets Executives and those on the move but does not reflect the average company or employee, where UC is less relevant.
How are customers businesses changing?
How do they want their business communications to support this?

13. Cloud Communications Market Experiences
Simple bundled propositions have prevailed
Hosted VoIP traditionally competed with PBXs based on OPEX expenditure, but there is now more competition between offerings
Providers have differentiated by:
Global/International Focus
Vertical Business Process Integration
Integration to common business tools (Microsoft, CRM etc.)
Focus on specific features/capabilities: Recording, Inbound/Contact Centre, Continuity & Security, Collaboration

14. Customer Requirements maturing
Global Cloud Communications
Embedded & Vertical Communications
Digital Disruption
Team Collaboration
Improving Customer Interaction
Mobility

15. Large number of Businesses have foreign Affiliates
If you are selling to European Mid Market companies they are likely to have foreign subsidiaries
Example UK has around 40k enterprises with 50 + employees
Germany and France have most affiliates within the European community
Interestingly with current politics Germany has a large number of US Affiliates
Relative to its size Italy also has strong US and European Affiliates

16. “WHICH MAJOR GLOBAL CARRIER IS DRIVING THESE?”
Digital Disruption
Communication is at the the very heart of all successful business models
Not surprising then that as we move into the world of Digital Disruption and new business models where communications is still at the heart of everything
UBER (Calling & Messaging), Airbnb (messaging), Schindler (Mobile monitoring notification), WhatsApp (Calls and Messaging) all require communication but do not work with traditional carriers.
100 million voice calls are made every day on WhatsApp
1.2b WhatsApp users
“WHICH MAJOR GLOBAL CARRIER IS DRIVING THESE?”

17. Who is enabling these Global services?
A new Breed of (CPaaS) “Communications Platform as a Service Providers” are enabling this market
Leading players include Twilio, Nexmo, Genband Kandy, Cisco Spark and others are arriving fast
What do they offer
A simple API focused platform that offers global reach, and enables developers to simply integrate communications into their apps and solutions

18. Team Collaboration & Messaging grows
Slack - 5 million daily users and 1.5 million paid (Jan 2017)
Slack targets larger companies with launch of Grid
Microsoft reacted with launch of “Teams” end of Jan
Facebook launch Facebook at Work
Broadsoft launch Team-One based on its Intellinote acquisition at end of 2016
RingCentral purchased Glip
Multiple other competitors including virtualized solutions from companies like: Yammer

19. Announce Next OS at Nextcon a new focus on customer interactions
Requirement to maximize customer interaction has driven growth in a number of areas:
Analytics both in Enterprise & Contact Centre
Integration between recording and Analytics as SPs look for more insight
Focus on inbound services and Queuing
Dedicated and Integrated Contact Centre Capability offered by most Hosted Players
Multi-Channel interaction in contact center
M&A & partner activity been hot in this areas as providers look to augment capability:
8x8 – DXI, Broadsoft – Transera, Metaswitch partner Telax,
Announce Next OS at Nextcon a new focus on customer interactions
Key Contact Centre Players include
Enterprises are now focused on how they interact with customers
Result of that is focused investment on contact center
Service Providers offering these as dedicated services and integated service into their hosted service
Investing in Recording, analytic are moving to the enterprise from the contact centre
Micheal – more M/A on this area later

20. How is my role as a reseller changing?
The communications market is going through a period of rapid change
How is Digital Disruption going to affect my customers?
How can I ensure my solutions match my customers future needs?
Is selling just voice going to be enough to differentiate me from the competition?