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SMBs want, and get, a lot of service choices - Part 3
Some larger users, however, might not be so willing to hand off all the responsibilities.
"They push off to a reseller saying ‘We need a phone system. Get it set up for us and show us how to manage it,'" she said. "The products we build are well suited for that. If you don't know anything about phone systems and you don't know anything about voice-over-IP you should still be able to set it up and make your phone calls really, really quickly."
At the very extreme end of the model is Cbeyond, a company that believes an SMB wants control and provides it.
"We're not a hosted PBX provider. We consider ourselves a managed service provider in that we manage some of the applications on their behalf, but they provide the on-prem equipment for their core communications. The small businesses really want to have that control," said Paul Gies, senior director of business development.
Cbeyond uses a network of about 2,500 value added resellers (VARs) to help small businesses with their equipment needs, then it steps in and provides all the services that run on top of that equipment. It also delivers its own T1 network connection so "nothing touches the public Internet."
Small businesses, which are good businesses in these bad economic times, are like Rodney Dangerfield: They don't get no respect from the local telephone companies who have long concentrated on their bigger enterprise cousins.
"They're not treated like a business; they're treated like a consumer and the offers that are made to them are consumer," said Gies. "We go in with business-grade solutions tailored specifically to their needs. It may be a little more expensive, but that's a message that small business owners can really appreciate."
Rather than pushing these SMBs away from doing more, the bad economy is actually pushing them forward.
"There's a flight to value and value is what we pitch our customers," Gies said. "They're looking for how these applications are going to help them run their businesses more efficiently."
Rees agreed. Even as enterprises turn their backs on more services or stay in neutral-much to the dismay of the bigger providers-SMBs are surging forward.
"This market has been very resilient through this downward recession," Rees said. "We've had some churn or cancellation due to some businesses going out of business, but that was inevitable; but we've seen a corresponding increase on the sales side of new businesses approaching us for service because they're looking for ways to cut costs."
Comments
The solutions you describe are primarily for larger small businesses, whereas the growth you mention in your opening paragraph is actually happening in the very small business market - start-ups, home-based businesses, virtual offices - that is where these laid-off people are going. They work on cell phones and laptops over wifi. They don't even have a place to install equipment or voip desk phones even if it did make economic sense, which it doesn't. Hosted services which focus on this segment are seeing the real growth in the economy. My company Toktumi has grown faster in the past three months than all of last year. Would love to see an article from you guys about what's happening in voip for this very-small-business segment.
As I read this article, it strikes me that even within the SMB market there are different segments, and within those segments there are providers and CPE manufacturers, yet all seem to get lumped into the same mix.
I would argue there are 3 distinct segments. The truly small as defined by Peter is the widest but thinnest. Yes, no room for IP CPE - only cell phones and wi-fi – and cost overrides all, but those guys grow into the 5-25 employee segment, and there they have a completely different set of needs. Presence? Yes. UM? Yes. Multiple line appearances? Absolutely. But these are not yet Shoretel customers. They are Allworx customers. As far as service providers, most try to have a broad appeal, but the truly small are not likely Cbeyond or Covad. They become prospects much larger in their growth. What I do agree with 100% is the desire of the customer in the market place to manage their day-to-day operations with whatever resources they have. Today’s customer repeatedly asks for more self management, and that has become a highly sought after purchase criteria. They want Web based admin with simple drop down menus and easy to understand choices.
Perhaps the article should have focused on the different SMB markets, and segmented those offerings contained within each segment.



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