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Snail-pace growth means South Africa’s ICT SMEs are under pressure to expand their offerings just to stay afloat this year.
The most recent State of the ICT Sector Report revealed that growth in the Information and Communications Technology industry was unimpressive at just 0.3% between 2021 and 2022.
Add the fact that the University of the Western Cape says 70% to 80% of SMEs fail in the first five years and it’s clear that the country’s smaller ICT firms need to diversify into cash-generating revenue streams.
Business communication and managed services provider ICTGlobe.com sees Internet Service Provider (ISP) solutions as ideal add-ons to an existing ICT SME’s range of value-added services.
ISPs mostly provide their customers with access to the web. With full Internet penetration in SA still well below 100%, there is plenty scope for new ICT firm entrants offering high-speed data services.
ICTGlobe.com’s Virtual ISP model enables smaller IT firms, existing telecoms businesses and ICT resellers to rapidly begin offering ISP services without the need to invest in their own infrastructure, new systems or additional people.
“Our Virtual ISP model is a modular, scalable Internet access solution that can provide new and existing customers of ICT SMEs with full national data coverage,” says ICTGlobe.com Chief Technical Officer Marius Kruger.
“It’s a true plug-and-play solution that can immediately start generating the cash flow that is going to be so vital to many small ICT firms this challenging year,” he adds.
Importantly, Virtual ISP means SMEs can compete with larger licenced operators thanks to the model’s greater built-in flexibility and overhead cost advantages.
On the ideal SME ICT firm wanting to get into ISP services, Kruger explained that this could include small VoIP-only operators experiencing the effect of declining voice margins or IT repair outfits seeing more of their clients importing new hardware rather than fixing old machines.
For smaller ICT firms that are already offering connectivity services to their clients, ICTGlobe’s Virtual ISP solution can help them compete with the bigger players on a more equal footing. “Efficient support, professional billing and more all combine to help the smaller operator punch way above their weight,” says Kruger.
This allows them to focus on what their core business is which should be marketing to and growing of their customer base.
Virtual ISP also enables the smaller ICT firm to get access to a well-developed voice, data and value-added services network which means excellent customer right from the start.
ICTGlobe.com has historically been an exceptional firm due to its ability to innovate in a very commoditised space. This year, it’s building on that culture with dynamic executive and management teams, and a renewed focus on innovation led by outstanding offerings like Virtual ISP.
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