Monetize existing customers with application marketplaces

In the current context, Service Providers are facing a matter of crucial importance: they need to identify new ways to monetize their existing customer base and reach new market segments.

A business applications marketplace could be the right solution to get the best of both worlds.

A huge opportunity to catch

If there is one crucial asset that Service Providers have, it is their corporate and business customers.

When it comes to corporate customers, Service Providers have traditionally focused on large enterprises, overlooking SMEs.

The main barriers were that SMEs did not have big ICT resources and that the “one-size-fits-all” approach did not work with them, because they needed more customisation and servicing that large enterprises.

However, small businesses are a big business: they form around 95 % of existing businesses and employ approximately 60 % of private-sector workers. They are also believed to contribute about 50 % to world gross value add (GVA).

SMEs may have small IT budgets and diverse needs, but they generate growth, create jobs, grow and innovate. And most of all, they are less complicated and more efficient and flexible than are large enterprises. If it is not enough, consider that enterprises are running cloud-based apps nearly 50% of the time. More precisely, according to Gartner almost 70% of SMEs are already using cloud-based softwares.

It soon becomes clear that SMEs represent a huge opportunity and that marketplaces are the trump card in the strategy of Service Providers.

The advantage of Service Providers

In comparison with other players, Service Providers are in an advantageous position to offer cloud applications through a marketplace.

As a matter of fact, Service Providers already have a relationship with numerous SMEs, which are part of their customer base.

Application marketplaces could also support Service Providers to reach new customers: more than half (58%) of SMBs in the UK would switch operators for access to a broader range of technology services, and 43% would purchase online hosting or cloud services from telecoms operators.

SMEs clearly have trust in Service Providers: this means that a branded marketplace would stand for quality and reliability. Also, buying softwares from Service Providers would mean that SMEs could simply add application purchases to their bills.

Through application marketplaces, Service Providers can offer a one-stop-shop solution: SMEs might be smaller than large enterprises, but they have (numerous) ICT needs that business softwares can answer. According to Gartner, SMEs see in the lack of customers (56%) and in the lack of money (46%) the main risks for their success. Service Providers could alleviate these risks through their marketplace: for example, they could distribute a software to manage online campaigns or build and run websites to remove the need of SMEs to work with expensive agencies and help them to attract and retain customers.

Last but not least, Service Providers already have their own sales network and high-quality customer support departments.

Why Cloudesire could be the right business apps marketplace for you

To sum up, there are 4 good reasons why Service Providers need the Cloudesire business apps marketplace:

1- Cloudesire allows Service Providers to have their own marketplace, to sell and distribute any kind of cloud service. Service Providers can offer promotions, bundles, discounts and innovative pricing models. The marketplace can be fully personalized to the Service Provider needs to enable the offering of the most fitting one-stop-shop experience.

2- Through the marketplace, Service Providers can engage and retain their existing ecosystem of vendors and buyers, and expand to new market segments in a circular, iterative, and market-driven process.

3- With the Cloudesire marketplace, Service Providers can enable all the cloud providers they want: enabling several offers will get better traction and end-users will be able to choose their preferred cloud - no matter if private or public, if a local, niche data center or a well known best of breed public cloud.

4- The business apps marketplace answers the growing need for cloud applications. Service Providers need to keep bringing innovation and add extra value to their customers: this can be enabled through the easy onboarding and price modelling features.

To learn more about the marketplace we developed for TIM -one of the leading telcos in Italy and South America- go to this article.

 

 

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