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Wholesale VoIP Feature Article

Why VARs and MSPs Should Consider Adding VoIP Services

April 12, 2017

By Tracey E. Schelmetic, TMCnet Contributor

For most companies today, technology is becoming less of a physical thing that you purchase – new computers for the workforce, for example – but a service that you lease. The move to the cloud and demands for mobility are giving rise to managed service providers, or MSPs, who remotely manage customers’ entire IT infrastructure, providing services such as wholesale VoIP or Web hosting, and charge monthly service or subscription fees for each “piece” of service. Many of these MSPs began as value-added resellers (VARs) but moved to full-fledged service providers when they realized the opportunities that are in services.

According to research by Markets and Markets, the managed services market size has predicted to grow from $145.33 billion in 2016 to $242.45 billion by 2021, at a brisk compound annual growth rate (CAGR) of 10.8 percent from 2016 to 2021. Much of this growth will be due to companies seeking services that reduce operational costs and allow them to take advantage of “big data.” Companies replacing their aging premise-based telecom infrastructures with cloud-based solutions are also a factor.

Going forward, MSPs as well as value-added resellers (VARs) may wish to consider broadening their services to adding voice over IP (VoIP) to the mix. Wholesale VoIP is in demand right now as companies gain an understanding of what VoIP can do to bring costs down and increase flexibility and functionality. 

A recent white paper by VoIP Innovations (News - Alert) entitled “Adding VoIP to Your Service Offering” detailed how MSPs and VARs are in a good position to begin offering VoIP since they already have their customers’ trust.

“You have a good relationship with your customers,” according to the white paper’s authors. “They trust you – you’re the one they turn to when they are in need of hardware, software, or break-fix services.”

Increasingly, telecom services that were once separate are merging. Customers today require (at a minimum) Web hosting, email and telephony. MSPs and VARS that add these offerings to their mix are able to offer customers a convenient, simplified service. By grouping them together in a single package, providers can gain a steady source of revenue for the long run, particularly when it comes to providing VoIP.

“Voice over Internet Protocol (VoIP) is the best phone option available with the numbers to prove it,” according to the white paper’s authors. “VoIP is growing at a phenomenal rate. In 2016, 30.9 million U.S. businesses used VoIP, which is expected to rise to 36.3 million in 2017 and 41.6 million in 2018 1. In 2015, VoIP services were worth more than $83 billion worldwide and are expected to grow to at least $140 billion in 2021.”

The good news is that there is still room for growth. (And, in some cases, users of first-generation VoIP are looking to replace it with something more streamlined, customizable and flexible.) By adding VoIP to your offerings, you’ll be positioned to take advantage of continued growth and the business trend toward flexibility, interoperability and mobility. 

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