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Infratel Unveils Top 4 Predictions for Web Hosting & Cloud Service Providers in 2013

Virtual Phone Applications Provider Anticipates Surge in Adjacent Services Driven by Demand From Entrepreneurs and Small Businesses

SEATTLE, WA -- (Marketwire) -- 12/18/12 -- Infratel, the provider of the MightyCall platform for small business virtual phone applications, today announced its top four predictions for web hosting and cloud service providers in 2013. CEO Bryan Goode expects hosters and cloud service providers to leverage their position as a trusted resource to small businesses by offering a collection of services to subscribers. These related adjunct services support the provider's need to increase average revenue per user (ARPU) and reduce customer churn.

"In 2013, we will see the service provider's role as a trusted advisor play a key role in fueling the adoption of cloud services and small business IT spending," said Goode. "This driving factor will present an opportunity in the hosting and cloud services market, where the expertise and convenience of working through a third-party will benefit small businesses in spades."

According to AMI Research, SMBs are expected to spend over $34 billion in cloud services -- 46% of that will be funneled through service providers. In part, Infratel believes this will be achieved through the following predictions:

1. 50% of hosters will embrace the concept of an "internal blueprint" and offer at least one new adjacent service to web hosting

In the next year, we expect most hosters and cloud service providers to embrace the concept of an "internal blueprint" to determine which additional services they will add to their portfolios that help increase ARPU and reduce customer churn. With amplified pricing pressures and the continued commoditization of services, web hosters, and channel providers are hungry for new sources of revenue. Therefore, it's important for channel providers to engage their users with more than one service making it harder for them to simply shop around for other similar solutions on the market. Additionally, this "stickiness" allows channel providers to build specialized expertise in verticals or specific business needs to create a niche collection of service offerings.

2. We will see the majority of top web hosters offer voice services to small businesses and entrepreneurs

Website capabilities are typically the first technology investment that a small business makes to establish a professional presence. In fact, according to a recent study by hosting and cloud services enablement company Parallels, 70% of small businesses with a website don't have a professional phone presence. Cloud and hosting providers who have existing relationships with these subscribers are well positioned to provide add-on virtual phone offerings as the next adjacent service.

3. An increasing number of cloud-based solutions will embrace the channel as a cost effective go-to-market strategy

Since channel providers already have established relationships with their core customers cloud vendors will increasingly embrace this model as a cost effective way to reach a high volume of end users quickly and cost-effectively. With fierce competition and the plethora of available solutions on the market, direct to consumer sales models will be viewed as cost-prohibitive particularly for technologies that can be easily delivered as an add on service via the channel.

4. Hosters and cloud service providers will begin piloting low touch solutions that require little to no setup and customization for small business subscribers

Over the past three years, there has been an explosion in the number of point solutions available to small businesses. With limited time and little to no dedicated IT resources, small businesses and entrepreneurs are struggling to understand what solutions are available and which one is the best option for their company. Engaging with a provider eliminates all of the installation concerns and reduces much of the setup complexity, enabling small businesses to get multiple services up and running through a single integration, with no additional tech support.

About Infratel
Infratel, Inc. (@MightyCall) makes solutions that help connect small businesses with their customers. Infratel solutions help entrepreneurs, fast growing startups and well established small businesses build a professional phone presence, grow through voice-based marketing campaigns and improve their ability to respond to customers. Infratel has more than 1000 customers worldwide and helped customers manage 1 billion minutes of calls in 2011. Infratel is an independent, privately held company headquartered in Seattle, WA.

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