Chris Lee, CEO of Cloud Age Solutions, is highlighted in this guest blog post on UC Today.
The big bang is on. There are thousands of UCaaS, VoIP, Cloud and Managed Service Providers in the U.S. — far more than traditional telcos, cable cos, CLECs, and wireless carriers combined.
What is driving these numbers? To begin with, it’s now very easy to enter the market. Ten years ago, a would-be service provider had to have significant technical networking expertise and make a substantial upfront investment in network infrastructure. But now, everything is scalable and available via a platform. You can launch a viable business with relatively little capital and few customers.
Second, there are 30 million small businesses in the U.S. The majority still rely on a traditional telco or cable company for their network services, making them targets for UC firms and next generation service providers.
But these factors also pose challenges. If it’s easy to enter the market, that means competition is intense. And telcos do not give up their best customers without a fight. There will always be someone out there with a better promotional offer or a lower price.