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2023: Year in Review
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In part 1 of this article, we started investigating the idea of telecom as a service. We took a deep dive into the rise of the “as a service” sector, describing and charting the current state and projected growth of SaaS (software as a service), PaaS (platform as a service), and IaaS (infrastructure as a service). In a certain sense, these trends reflect the overall virtualization of the tech economy, with the billionaire-driven behemoths seeking ways to defend or expand their empires during an era of cost optimization by pushing cloud services over physical assets.
The moves of Microsoft, for instance, have prevented it from falling into the trash bin of silicon history. By untethering their fortune from the stagnant growth of personal computers, they’ve turned their Office suite into a SaaS cash cow, with over 110 million commercial and consumer monthly active users on Office365. On the IaaS side, their Azure cloud server service has seen over 90% year-over-year growth.
But where does the concept of telecom as a service fit into the picture? And how should you read these signs on the wall to make the best decisions for your business?
While there is likely a minimum level of IT infrastructure each company still requires—in SIP and VoIP, it often revolves around bandwidth—the current state of telecom as a service has reached a point where the decision between on-premise, cloud-based, or hybrid implementations no longer hinges on a disparity in feature sets. Most of these core capabilities can be delivered by reputable providers, whether it’s a physical install or a web-based deployment:
While it’s important that the provider can meet the requirements of your service level agreements, these deep integrations require something more. They require trust. And trust can only come from a vendor who will stand shoulder-to-shoulder with you and fulfill their role as a partner. You don’t want to be just another account in a vendor’s CRM.
It’s critical to not only understand the short and long-term impacts of any cost optimization measure but to ensure these efforts align with the problems that your company’s products and services are tailored to solve. Cloud-based services are often designed to meet the widest array of customer needs, so you could be flooded with capabilities you and your employees don’t need or can’t use. You may find yourself looking at three-column grids (e.g., Basic, Premium, Elite) with checkmarks next to a lengthy laundry list of features, some of which you don’t understand and/or wouldn’t pay for if you had the choice. Think about the average cable or satellite TV channel lineup, and how many you would get rid of if it would lower your monthly bill. So, where does telecom as a service fall on the spectrum?
From an IT standpoint, the end of physical installations and station-by-station upgrades has been a blessing. However, the move from on-premise to cloud-based SaaS services also means that, rather than dealing with a single initial setup, you’re facing an unpredictable avalanche of updates, hotfixes, and point releases which may require significant training and internal support. Salesforce, for instance, has three major releases every year, and in their Summer 2017 release they:
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