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Throughout Microsoft's evolution of its UCaaS and collaboration services, its journey has been punctuated by initial partnerships and subsequent alienations as the vendor seeks to maximize the revenue potential of Office 365.


  • In the battle to stay relevant, CSPs need to move toward an independent software vendor (ISV) model and develop their own intellectual property to improve their revenue potential.
  • CSPs must look to provide more value beyond that of connectivity. To improve ARPU, reduce the threat of over-the-top software vendors, and differentiate, CSPs must look to integrate services on top of open platforms that provide custom opportunities for specific vertical applications.

Features and Benefits

  • Assesses how CSPs can stay relevant in the complex UCaaS and collaboration market when faced with the challenge of Microsoft.
  • Explains how CSPs can adopt a monetize or marginalize strategy when faced with Microsoft Office 365.

Key questions answered

  • Should CSPs view Microsoft as a threat to or an opportunity for their UCaaS and collaboration business?
  • How do I need to change my current business model to suit the current market dynamics?

Table of contents


  • In brief
  • Ovum view
  • Recommendations

Market status

  • Microsoft's transformation to a software-as-a-service (SaaS) company
  • Microsoft's current UCaaS and collaboration service

Market outlook

  • Partnering with Microsoft: software development opportunities
  • Competing with Microsoft: marginalizing Office 365


  • Further reading
  • Author