Buy or Build Cloud Capability?

The level of investment for cloud capability has seen tremendous momentum lately. Tier 2 providers including Windstream and TDS are investing hundreds of millions of dollars in both acquisitions and CAPEX for cloud capabilities. But news of WVT's recent purchase of Alteva now expands this acquisition spree to include smaller tier 3 providers.

WVT announced the purchase of Alteva for $17 million - a bold move for a relatively small independent of 26K access lines. The move positions WVT nicely in the fast moving cloud and managed services segments.

So should small telcos follow this lead? Is it better to buy or build into the cloud? The answer - in true consultant speak - it depends. Issues like competitive pressures, existing revenue diversification achievements, and leverage and liquidity all come into play, among many other factors. Individual company and market circumstances determine the best path for small independents.

What is clear though is cloud and managed services represent one of the best diversification paths forward. The question is not should you pursue them, but how?

CHR Solutions has a portfolio of managed services that can make the 'how' easier to achieve. We help service providers who can't build their own portfolio of enterprise cloud and managed services still take advantage of this important revenue diversification strategy. Contact us to find out how we can enable your strategy today

Written by Kevin Kutcher at 00:00

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