Service Providers Scrapping Seats-Based Costs
Interestingly, with the advent of popular applications enabling real-time collaboration through mediums such as video chat and voice calls between computers, more individuals are less likely than ever to reach for an actual telephone.
As a result, this presents both a significant opportunity and a challenge for service providers.
First, the opportunity: oversubscription. Because people are now using alternate ways of communicating, service providers are seeing fewer active calls going out from among their end-users. For this reason, they should be able to put more people onto one SIP trunk and grow their profit margins through ongoing, increasing oversubscription ratios.
However, service providers are handcuffed into buying their UC solution on a per-seat/feature pricing model which their PBX platform vendor forces upon them. This model consequently forces service providers into buying a new license from their vendor every time they gain a new customer. Even though end users are using more Unified Communication applications than just their desk phone. Because end users are communicating differently, there has been a 19% growth in oversubscription rates in the industry (more on oversubscription below).
Service providers are waking up to this seat trap and have started shifting to a better pricing model to leverage the ever growing oversubscription rates. This disruptive business model of “session based pricing” facilitates oversubscription by allowing a service provider to use the same license for multiple customers. As a result, they can earn additional margin and revenue from each new seat/customer they sign without having to spend more on licenses they do not need.
Unlock Maximum Profitability
Over a decade and a half ago, we predicted rising service provider demand for oversubscription. So we established our own unique sessions-based pricing model – to meet our customers’ demands for a powerful way to boost profit margins with an already powerful cloud PBX solution.
The true value behind NetSapiens ’ PBX platform is our sessions based pricing model that allows service providers to increase their customer base year after year on a fixed-cost license. This means that as your business grows so do your margins. Overall, sessions based pricing allows you to oversubscribe and maximize your ROI. Unlike seats-based pricing, which limits your selling ability and significantly reduces your market reach.