2023 Research Report: CSP UCaaS Service (The Next Broadsoft)

In this 2023 report, Brent Kelly, Principal Analyst for Omdia’s Digital Workplace team, delves into why and how CSP UCaaS service platforms can provide communications service providers (CSPs) flexible solutions that can successfully compete with OTT cloud-based communications services, be white-labeled, be easy to deploy, and are highly scalable

Over-the-top (OTT) unified communications as a service (UCaaS) suppliers, who are well-funded and innovate quickly, are increasing their competitive pressure on communications service providers (CSPs) and carriers. Many CSPs and carriers currently employ Cisco BroadWorks, Microsoft Metaswitch, or Genband server-based softswitch technologies, which receive minimal long-term investment. For these legacy solutions to offer all the functionality the market expects, countless additional partnerships are required, and they often still don’t allow carriers to successfully compete with their OTT counterparts.

It’s possible for Alianza to replace BroadSoft, according to Omdia researchers. Because Alianza is a multitenant, cloud-native, agile solution created specifically for service providers, it is better positioned for growth and market cap than its competitors.  

Existing softswitch systems necessitate that the carrier or CSP set up, run, and upgrade their own servers. In addition, they lack the flexibility to keep up with the ongoing functional improvements provided by UCaaS platforms. 

According to Omdia, Alianza is well-positioned for quick expansion in the $16 billion and expanding UCaaS market for telephony. 

Due to changing market conditions, carriers and CSPs are looking into alternatives to Metaswitch, BroadWorks, and Genband. Cloud-based OTT alternatives with lots of features are eroding the traditional business model for the carrier voice industry.

Omdia’s research found that many of these carriers and CSPs really want the following: 

• A white labeled solution that can compete with OTT providers 
• A method to maintain the relationship with the end customer 
• Integrations with their existing operations and business support systems (OSS/BSS)
• Strategies to retain margins by charging what the market will bear 

Intermedia, Enreach, and Alianza are three of the few UCaaS solution providers that offer white label services. However, Intermedia offers cloud communications services for NEC, the maker of PBXs, while Enreach is a pan-European provider that sells direct and through channels in roughly 20 different European nations.  

Sadly, for communication service providers, this is nothing new. Cisco is now competing with its service provider customers by entering the direct sales market and having end-user subscribers with its GoCo offering. Service providers are now in the awkward position of competing with Cisco, their platform provider. This isn’t ideal since it restricts service providers’ ability to influence the market and creates serious conflicts of interest regarding the relationship’s strategic goals. These issues will obstruct effective collaborations, roadmap innovation, and information flow in general. 

Alianza’s CEO Brian Beutler has drawn a firm line in the sand that Alianza will not undermine its service provider customers’ ability to win business — and succeed — by selling directly to enterprise. Our service providers have the peace of mind that our business decisions are always focused on their success. We win when they win. 

It may seem difficult to transition to the cloud from a Metaswitch, BroadWorks, or Genband solution, but it doesn’t have to be. The key to choosing the best cloud-based offering is understanding not only the options available but also how to distinguish between mediocre and excellent solutions based on the migration experience, business model, automation capabilities, and how the cloud providers can support a secure and effective migration. 

Working with a reputable cloud communications provider like Alianza makes all the difference and ensures a great migration experience.