New Research: Almost Half of SMBs Will Switch to Their Primary Communications Service Provider for Cloud Solutions if Offered Bundles of Traditional and Cloud Services

74 percent of SMBs want cloud-based services from their primary service provider, but only 45 percent actually are receiving them; represents market share and revenue growth opportunities

News provided by

Amdocs

Apr 24, 2014, 06:00 ET

ST. LOUIS, April 24, 2014 /PRNewswire/ -- Amdocs, the leading provider of customer experience systems and services, today released new global research that explores small- to medium-sized businesses' (SMB) cloud services consumption and purchasing patterns. The research identifies an opportunity for communications service providers to capitalize on this fast-growing segment by offering cloud-based services and bundling them with traditional communication services.

The research surveyed 1,311 SMB decision makers from North America, Europe, Latin America and Asia Pacific. The first study of such scale, this research offers valuable insight that can help service providers develop an effective cloud-based SMB offering strategy, including:

  • Sixty-six percent of respondents said cloud-based services are very important to their business with 57 percent stating that their companies already take advantage of cloud-based services; 44 percent of those who are not yet using cloud-based services are actively considering  it
  • Most consumed services 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
  • Only 45 percent of respondents said their companies get cloud-based services from their primary service provider; 74 percent of respondents said they prefer to receive cloud-based services from their primary service provider, but 41 percent believe they can get better deals from independent cloud vendors, 32 percent did not ask for or receive information about cloud-based offerings from their primary service provider, and 31 percent do not believe their primary service provider even offers cloud-based services
  • Sixty-eight percent said they are more likely to select a service provider that offers cloud-based services over one that does not, and 44 percent said they will switch from third-party cloud services providers to their primary communications services providers if offered bundles of traditional and cloud services
  • 80 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."

"To be able to capitalize on the SMB cloud-based services opportunity, communications service providers must have a convergent BSS and OSS systems environment that can cost-efficiently support both cloud-based and traditional services," said Rebecca Prudhomme, vice president of product and solutions marketing for Amdocs. "Such a convergent systems environment, in combination with enhanced SMB self-service capabilities as offered by the Amdocs CES 9.1 portfolio, enables service providers to differentiate themselves from independent cloud-based services vendors and empower SMBs with cross-service bundles and discounts, tailored to their needs."

Amdocs' cloud offerings directly address service providers' imperatives for success by helping them rapidly introduce new revenue streams with cloud-based services such as solutions for storage and backup, by enabling their cloud ecosystems and ICT services with fast partner onboarding and with converged BSS and OSS capabilities for handling and bundling existing and cloud services, and by leveraging cloud technologies (such as virtualization) to reduce costs.

Supporting Resources

About Amdocs

For more than 30 years, Amdocs has ensured service providers' success and embraced their biggest challenges. To win in the connected world, service providers rely on Amdocs to simplify the customer experience, harness the data explosion, stay ahead with new services and improve operational efficiency. The global company uniquely combines a market-leading BSS, OSS and network control and optimization product portfolio with value-driven professional services and managed services operations.  With revenue of $3.3 billion in fiscal 2013, Amdocs and its more than 21,000 employees serve customers in over 70 countries.

Amdocs: Embrace Challenge, Experience Success.

For more information, visit Amdocs at www.amdocs.com

Amdocs' Forward-Looking Statement
This press release includes information that constitutes forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, including statements about Amdocs' growth and business results in future quarters. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations will not be material. Such statements involve risks and uncertainties that may cause future results to differ from those anticipated. These risks include, but are not limited to, the effects of general economic conditions, Amdocs' ability to grow in the business markets that it serves, Amdocs' ability to successfully integrate acquired businesses, adverse effects of market competition, rapid technological shifts that may render the Company's products and services obsolete, potential loss of a major customer, our ability to develop long-term relationships with our customers, and risks associated with operating businesses in the international market. Amdocs may elect to update these forward-looking statements at some point in the future; however, the Company specifically disclaims any obligation to do so. These and other risks are discussed at greater length in the Company's filings with the Securities and Exchange Commission, including in our Annual Report on Form 20-F for the fiscal year ended September 30, 2013 filed on December 09, 2013 and our Form 6-K furnished for the first quarter of fiscal 2014 on February 11, 2014.

SOURCE Amdocs

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