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Telcos Are Coming to IT: How Should MSPs Respond?


New competitors are entering the IT services space with a lot of marketing dollars to spend. These new competitors are already familiar with providing services and earning recurring revenue on a monthly basis. In fact, you are probably familiar with these companies because they are giants. We’re talking about telcos of course.

Why Telcos Are Coming to IT:

Over the last decade, telco companies have watched their market shrink, and their service offerings become less expensive. In turn, they started looking for new, complimentary services to help boost revenue.

The IT services space offers a soft landing for telco providers, as they are used to selling bundles of services charged as a monthly service. Additionally, IT opens more doors then their own space as the telco can sell to any business anywhere, not so with their own services which are confined by network areas.

managed service providers

How MSPs Retain Their Competitive Advantage:

Companies are moving to the cloud, and that is exactly where the telcos are starting their IT businesses. Cloud solutions have a low barrier to entry from a financial and education standpoint making them irresistible to telcos who lack the technical knowledge to advise clients on traditional software solutions.

But businesses, especially small businesses, want and need a subject matter expert and technical advisor when it comes to their IT solutions. This is why they have always relied on MSP support. It is this long-standing relationship and the subsequent trust built up over many years that will be the MSPs competitive advantage against telcos.

cloud computing

It’s time to move to the cloud. Cloud computing offers several advantages over traditional IT solutions, including the ability to be accessed anytime, anyplace from almost any type of device. The case for the cloud is strong, and on-the-go small business owners are finding it difficult to stay away. Because of this, MSPs that remain resistant to the cloud will risk losing clients and their reliable revenue streams.

Fortunately, MSPs will find many cloud partners that offer high quality solutions that outpace the traditional IT systems they have relied on for years. By making the switch to the cloud, MSPs will not only level their playing field against telcos who are pitching cloud solutions – they will retain their competitive advantage.

Now is the time for MSPs to choose a reliable cloud partner. Without doing so they risk telcos coming in and eroding away their market.

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