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NewVoiceMedia: Cloud means faster growth

Cloud might deliver more flexibility and efficiency but it also means faster than market revenue growth according to NewVoiceMedia

Adopting the cloud is meant to deliver more flexibility, greater efficiencies and place a business on a technology platform that should support future growth.

The first two of those wishes are usually fulfilled fairly quickly because the very nature of the service is flexible in terms of payment and scaling up. Greater efficiences often filter through after staff begin using hosted applications.

But being able to claim that the cloud can deliver growth has always been a bit harder to back up with hard evidence. That was mainly because of the age of most roll-outs with many customers was relatively recent and collating moving to a hosted environment with revenues was in its infancy.

NewVoiceMedia has come up with some figures that should help resellers convince those slow cloud adopters to put their foot down that bit harder on the pedal to ensure they can exploit the benefits that some of their competitiors are already enjoying.

The cloud specialist found that UK firms that it worked with were growing at 41%, a level that was significantly higher than the general market rate.

Media, telco and ultities were the verticals that seem to benefit most from moving to the cloud with 85% growth rates compared to 8% merket levels. Financial services was also a strong performer. Business service firms were enjoying levels of 39%.

There were similar experiences in the US, although some of the verticals were different, as the evidence started to mount that using the cloud would deliver much higher growth rates than the general market conditions would support.

“Our cloud customer contact solutions are attracting some of the world’s highest-growth businesses because we are relentlessly committed to driving innovation that is revolutionising the way they connect with their customers worldwide and growing their business with improved efficiency, reduced churn and greater customer advocacy," said Jonathan Gale, CEO of NewVoiceMedia.

The financial benefits of moving to the cloud are not just confined to customers and the valuations of those resellers that increase their managed services operations have also climbed in recent years.

A couple of years ago those anaged service providers who had got into the business early were already noticing that the valuation of their company had increased since they had made that move.

Colin Sales, founder and managing director of Montal, was quoted back in 2011 pointing out his experiences once it etsblished itself as an MSP.

"Valuations are usually a multiple of the profit and can be five or six times but for software companies it can be ten times because a lot of software companies have customers that are committed to them," he said at the time.

That view about the benefit to valuations has been backed by the likes of the Cloud Industry Forum, which has encouraged more resellers to develop their own intellectual property to improve their valuations.

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