Part 3 Market Transformation Causing a Shift

Part 3 Market Transformation Causing a Shift

As discussed in Part 2 of this 4 part series, most Service Providers are paying for their UC Platforms on a per-seat basis. Watch Part 3 below, where Jason Byrne and Craig Galbraith discuss the trends in the market and how Service Providers ultimately benefit. Keep reading to discover the top three reasons why Service Providers looking to sell Unified Communications should choose a platform vendor using a usage-based pricing model instead.

Watch Part 4

3 Reasons to Choose a Usage-Based Pricing Model

1. Trends

Platform Providers have been charging Service Providers on a per-seat and per-feature basis for too long. While that may be beneficial for the Platform Providers bottom line, this pricing model leaves the Service Providers with very little to show as far as ROI. Not to mention, the UC industry is quickly being surrounded by usage-based pricing models in many other markets.

The usage-based pricing trend is sluggishly making its way to Unified Communications. But many Platform Providers are reluctant to change their pricing model, because they are afraid that empowering their Service Providers could mean less money in-turn for them. However, the opposite is proving to be true. Growth possibilities are limitless when Service Providers are given more flexibility and freedom. And Platform Providers that are already evolving to a usage-based pricing model have seen significant growth for their Service Providers. Which has resulted in growth for the Platform Provider as well.

2. Cost Savings with Usage-Based Pricing

No one wants to pay for more than what they use. Furthermore, those with significant growth prospects feel more comfortable with usage-based pricing which allows for more dynamic scaling. Usage-based pricing models save Service Providers money now, so that when they are able to scale, they can without hesitation. With this type of pricing model, Service Providers can price their services at a rate that allows them to be profitable and plan for future growth.

Providers of facilities-based solutions, should be able to personally choose the origination, termination, hardware costs, etc. to fit their budget. This flexibility allows for maximum ROI. Additionally, usage-based pricing models give Service Providers the opportunity to oversubscribe on phone lines and hosted phone seats which equates to greater margins.

3. Flexibility Creates Business Opportunities

When Service Providers have flexible pricing models, they gain the power to make better choices for their business. Instead of reselling the same cookie cutter system as the next Service Provider, usage-based models are designed to give the Provider flexibility to completely customize the product, the pricing, and the network to fit their business.

A true usage-based pricing model should give SPs full access to all of the features. Which puts the Provider in control of what they offer their clients. That control leads to strategic selling and a wider range of markets they can sell in. Thus, creating more business opportunities and potential for growth.

An Evolved Platform Provider

Service Providers need a more modern pricing model for their UC Platform in order to serve today’s evolving work environments. netsapiens offers a pricing model based on the peak number of active sessions across your network. This usage-based pricing gives SPs the flexibility to serve a wide range of businesses without sacrificing ROI. Learn more about our pricing model by downloading the following report and checking out our pricing model page.

usage-based pricing report