Broadband the key to success in cloud.
Sales of Microsoft’s cloud productivity suite had increased the stickiness of Telstra’s broadband customers and created a new revenue stream in other cloud services for the telco, a Telstra spokesman said yesterday.
“When we launched T Suite (Telstra’s software-as-a-service platform) with Microsoft as the strategic partner we’ve seen the churn rate in our broadband products drop and we’ve seen people buy more services on broadband,” said Marcus Bartram, director of business development at Telstra Business.
“From our perspective it’s delivered against all the strategic boxes we ticked off and it’s building a new revenue stream for us.”
SMB customers were attracted to the fact that they could pay one provider for broadband, mobile, software and other cloud services, said Oscar Trimboli, director of Microsoft’s information worker business group.
“The SMBs are saying really clearly to us that they love the fact that it’s on one bill. They can get their email services, broadband services, network services and their mobile services all in one place,” Trimboli said.
The revenue stream from cloud services was “not directly substitutional” for the loss of fixed-line revenue, Bartram said. The upcoming Microsoft Office 365, due 28 June, includes communications tool Lync Online which can make free phone calls to Microsoft Office 365 users at other companies.
Bartram said fixed-line revenue was impacted by a variety of things including mobile substitution as well as cloud-based telephony and was less of a priority than broadband.
“The strategic imperative for us is about broadband market share. There’s an opportunity with what we’re doing with Microsoft to grow revenue and do different things which work for customers.”
Bertram said the growth in SMB was in cloud-based services such as infrastructure as a service, applications as a service, web services and “a whole range of other things”. Selling Microsoft cloud services “changes the conversation with the customer from feeds and speeds and price to a business conversation, and it opens the door to talk about all these opportunties,” Bartram said.
“A great example is our IP telephony. It has been getting phenomenal growth rates, close to 70 percent year on year.”