Together, they discuss the landscape for international expansion facing cloud communications service providers, sharing common obstacles and solutions to surmount them when expanding into new territories.
Watch the video below now:
Interested in this topic? Dive deeper with a free accompanying whitepaper from independent analyst Cavell Group
Alternatively, read on for a text-based recap of some of the key takeaways from this webinar.
In the first part, Cavell Group’s Dominic Black shares the reasons why so many cloud communications platforms are now choosing to scale their products to new markets.
“Internet and cloud in general are driving enterprises to go global, go international,” he says, explaining how these reduced barriers for entry make it much more attractive for businesses to turn to new markets in order to identify potential new customers.
Given that services now account for a quarter of global trade, he expects this trend to only strengthen in the future. One final point is that enterprises are now set up to leverage global talent and most have a multi-market view when it comes to building out their organisations.
What Are the Opportunities for Service Providers?
As you can see from the graphs below provided by Cavell, France, UK and Germany are the key EU markets in terms of the total number of enterprises operating with operations in other EU countries or the US.
It’s worth pointing out that this trend for international operations spans the width of companies by different sizes – from 70+% for large companies (250+ employees) to 30+% for SMBs (0-99 employees), according to Cavell’s data.
The research company’s findings also show that the market for cloud communications is growing rapidly, with over 30 million users expected across Europe by 2024, more than double of what was seen in 2019.
This research was conducted before the COVID-19 global pandemic, which has only sought to drive more companies and their workforces online as part of a rapid scramble towards remote working.
The other major point of note is that, according to a survey of enterprises by the organisation at the end of 2019, over 50% of enterprises expected to launch a new geographic territory by the end of this year.
Again, it’s important to consider the subsequent impact that coronavirus and global lockdown is likely to have on the precise size of this growth. But the fundamental point that these statistics make is that the march for enterprises towards cloud communications is inexorable, especially given the global ISDN shutdown that is currently underway.
And so, the opportunity for cloud communications service providers remains similarly huge. Given this, one question is likely to jump out at you…
Why Have Cloud Providers Struggled to Scale Internationally?
Some of the main obstacles to international growth discussed in the webinar include:
Technical barriers including the cost of local numbering and difficulty with porting processes, regulatory requirements, security and data considerations and the reliability of borderless networks.
“Requirements are really a global constraint. In Europe we talk about one market and the European Union is really driving towards [this], but go across all different European markets and the regulatory regimes are all fairly different,” says Black. “You’ve really got to understand when you go to these markets what those regulations are.”
Business obstacles including the cost of administration to avoid language barriers and legal nuances by leveraging local expertise, the logistical challenges of remote managing teams and the potential cost of scaling, such as replicating marketing, sales or engineering teams in these different markets.
What Are the Expansion Options for Service Providers?
In the webinar, the conversation about the available strategies for scaling internationally looked at three key approaches, identified by Cavell as the most effective ways of exploring multinational growth:
- Acquisition of a service provider based in the desired expansion location
Pros: Local skills and assets, access to existing customer base, local expertise
Cons: Large capital investment required, potentially limited acquisition options due to previous M&A activity, compatibility of platforms
- Build and manage the infrastructure for your platform within the country or region you wish to enter
Pros: Maintain control and avoid logistical constraints around acquisition, long-term cost reduction and replication of existing platform
Cons: Cost and time to market due to the need to building and managing local teams
- Extend your existing solution by utilising the capabilities and infrastructure of a wholesale operator with local numbers in the desired region or country.
Pros: Easy and quick scale, reduced time to market, lower upfront costs, extended scope to reach multiple new regions, reduced admin and logistical constraints as partner can help with numbering and regulations.
Cons: Capacity planning, questions over whether some providers can help with regulatory requirements
What Obstacles Did Genesys Face in Scaling its Cloud Contact Center Platform Globally?
As Genesys Sr Director of Telco Commercial Management Herbert Shades notes: “We don’t talk about problems at Genesys. Instead we see opportunities to better help our customers reach their end users.”
And the biggest opportunity to address is enabling the company’s diverse customer base to reach their own customers regardless of national borders and without the typical overhead or regulatory pain points.
This means identifying partners – along the lines of the Extend expansion options outlined by Cavell Group – that can help Genesys excel in the following areas.
- Quality of Service
- Speed to Problem Resolution
- Availability of Self-Service Tools
He also identified three key ways that Genesys has been able to ensure it is successfully supporting its customers at every stage of their growth journey:
- Direct Interconnections with operators to ensure quality of service, compliance and uptime
- API integrations to enable self-provisioning for shorter deployment times and more efficient comms management at scale
- Using best-in-breed providers to deliver quicker deployment, greater reach and quicker problem resolution
Interested in hearing more about how Genesys identified its path to success and overcame potential stumbling blocks by partnering with Voxbone?
Check out our full customer story with Genesys here.
Finding the Right Partner to Extend Your Platform Internationally
If you’re considering your international expansion options and leaning towards extending your existing solution by integrating the capabilities and infrastructure of a wholesale operator, it’s time for you to talk to Voxbone.
We’re a national operator in most of the 65+ markets we serve, meaning we own and operate our own numbering and infrastructure and are directly interconnected with the national networks in these countries.
It also means no margin stacking, the best possible quality and latency, tier-1 reliability and the quickest possible speed to problem resolution – because there are no hidden carriers in the chain. By coming straight to the source, you get full transparency and accountability, for greater control over your communications.
We’re compliant with all local regulations and provide the platform and APIs to easily provision, configure and manage business telephony services in real-time and programmatically.