Businesses are increasingly seeking integrated communication solutions that enhance collaboration, productivity, and simply make phone calls easier in their modern environment. Microsoft Teams has emerged as a leading platform for next-gen, cost-effective communication solutions and now boasts over 300 million monthly active users.
This widespread adoption creates opportunity for Managed Service Providers (MSPs) and telecom resellers to expand service offerings, subscription models, and recurring revenue opportunities through Microsoft Teams Direct Routing. By leveraging this technology, service providers can offer customized calling solutions within Teams and maintain control over marginsāan integral part in fostering recurring revenue streams.
You’ll learn about Reinvent’s partner solution later, but as a spoiler, since we’re talking about itāReinvent partners can expect margins anywhere from 50-100%!
Understanding Microsoft Teams Direct Routing
Microsoft Teams Direct Routing is a cutting-edge capability that enables customers to connect their on-premises telephony infrastructure (or chosen SIP trunking services) directly to Microsoft Teams, creating a comprehensive communication hub and enabling seamless interactions for users.
This Session Initiation Protocol (SIP) trunk integration allows users to make and receive external voice calls from within the Teams environment, often without the need for additional hardware or infrastructure like you would need with a traditional analog phone line. This transforms Teams into a shining example of a business phone system that boosts productivity and collaboration.
Unlike Microsoftās native calling plans, which require businesses to use Microsoft as their PTSN provider, Direct Routing offers flexibility, allowing the use of third-party carriersāand SIP providers like Reinvent Telecomāas well as their existing telephony equipment.
This approach not only lowers what customers pay, but also provides greater control over call routing and costs, making it both cost-effective and efficient, allowing MSPs to provide more value.
The Role of SIP Trunking and Bandwidth in Direct Routing
SIP trunking is a method of delivering voice communication over an internet connection, replacing traditional phone lines with a virtual connection. In the context of Direct Routing, SIP trunking serves as the bridge between Teams and the Public Switched Telephone Network (PSTN).
By utilizing SIP trunking, businesses can achieve significant cost savings, with studies indicating cost reductions of up to 60 percent. SIP trunking also offers scalability, allowing organizations to adjust call capacities based on demand.
Technical Requirements for Direct Routing
To successfully implement Direct Routing, businesses must meet specific technical requirements. First and foremost, a compatible SIP trunk is essential to facilitate the connection between Teams and the PSTN. Meeting these technical prerequisites, means providing a high-quality communication system that meets customers’ needs.
Sufficient bandwidth is crucial to support consistent, high-quality video conferencing and voice calls, ensuring a smooth experience for end-users. A reliable internet maintains constant call quality and avoids disruptions, and proper configuration of the SIP trunk and the Microsoft Teams environment is vital to ensure seamless integration and optimal performance.
Direct Routing vs. Microsoft Calling Plans and Operator Connect
When considering telephony integration with Teams, companies have multiple alternatives to a traditional business phone system and physical phone lines.
| Microsoft Calling Plans A straightforward solution where Microsoft acts as the telephony carrier. While easy to deploy, it may come with higher overhead costs and limited flexibility in carrier selection. | Operator Connect Introduced to simplify the connection between Teams and telephony operators, Operator Connect allows companies to choose from a list of certified operators. However, it may still lack the customization and control needed for handling voice traffic. |
| Direct Routing Offers the most flexibility, enabling businesses to connect Teams to their preferred telephony carriers and maintain existing contracts. This option supports complex routing scenarios and integration with legacy systems, providing MSPs a tailored solution to meet specific business and call volume needs. | |
Benefits for MSPs and Telecom Resellers: Recurring Revenue Opportunities
For MSPs and telecom resellers, integrating Teams Direct Routing into their service portfolio offers several advantages:
Expanded Service Offerings – Service providers can meet the growing demand for integrated communication platforms, attracting new customers and retaining existing ones.
Recurring Revenue Stream – By offering Direct Routing as a managed service, providers can establish recurring revenue through subscription service models, ensuring consistent monthly income.
Control Over Margins and Customer Relationship – Service providers have full control over their customer service level agreements (SLAs)āsetting pricing structures and managing end-user interactions directly, fostering stronger relationships and higher profit margins.
Differentiation in the Market – Offering customized Direct Routing solutions sets MSPs and resellers apart from competitors who may only offer standard calling plans with long-term contracts, positioning them as versatile and client-focused.
Understanding Recurring Revenue Opportunities
Implementing Direct Routing opens up significant recurring revenue opportunities. By offering subscription services, predictable and stable revenue streams can be established which are crucial for long-term financial health.
Recurring revenue models provide consistent income, reducing the risk of revenue fluctuations and allowing for more effective planning and investing in growth initiatives.
With Direct Routing, businesses can offer their customers a reliable and affordable way to make and receive phone calls, ensuring a steady flow of recurring revenue.
Reinvent Telecom: Empowering Partners with Direct Routing Solutions
Reinvent Telecom stands out as a 100 percent partner-driven cloud communications provider, dedicated to enabling MSPs and telecom resellers to build and grow their own branded or co-branded services.
With a focus on flexibility and partner success, Reinvent offers a comprehensive Direct Routing solution that seamlessly integrates with Microsoft Teams.
By partnering with Reinvent Telecom, service providers can quickly enter the market with a robust Direct Routing solution, backed by a provider committed to customer success and recurring revenue opportunities.
This partnership ensures that MSPs and resellers can offer their customers top-tier services while retaining full control over their company, brand, and customer experience.
Looking to learn more? Check out our Video to learn how MSPās can earn significant margins with Teams and DirectĀ RoutingĀ Here! Ā
Reinvent’s Direct Routing Solution: The MSP and Reseller Answer to Modern Communications
Key Features:
White-Label Offering
Partners can brand the service as their own, maintaining control over customer relationships and pricing, while increasing revenue.Comprehensive Support
Reinvent assists with telephone numbers, 911 services, line number porting (LNP), and number management, eliminating the need to rely on Microsoft for access to these services.Enhanced Functionality
Reinvent’s Direct Routing solution fills gaps in the standard Microsoft Phone System, offering features like disaster recovery call forwarding, call recording, and account codes.Hybrid Networking
Supports integration between the Microsoft Phone System and Reinvent’s cloud-based Unified Communications (UC) solution, enabling calling to common area phones, door phones, and overhead paging systems.
Actionable Steps for MSPs and Resellers
To capitalize on the opportunities presented by MS Teams Direct Routing, service providers should consider the following key steps:
ā Assess Market Demand
Evaluate and accurately forecast the needs of your existing and potential clients for integrated communication solutions and SIP services.
ā” Partner with a Trusted Provider
Collaborate with a provider like Reinvent Telecom to access a white-label Direct Routing solution that aligns with your business objectivesālike building a customer base and recurring revenue stream.
ā¢ Develop a Go-to-Market Strategy
Create a plan that includes marketing, sales training, and support to effectively promote your new service offeringāsetting it up for success.
ā£ Train Your Team
Ensure your technical and sales teams are well-versed in the features and benefits of Direct Routing to provide exceptional service to customers.
ā¤ Engage in Continuous Learning
Stay informed about updates in Microsoft Teams and Direct Routing technologies to offer the most current solutions to your customers and avoid network issues.
Why Sell Off Your Customer Base One Client at a Time? Reinvent Your BusinessāBe an Owner, Not an Agent!
By embracing Microsoft Teams Direct Routing, MSPs and resellers can unlock monthly recurring revenue streams, enhance their service portfolios, and strengthen customer relationships.
Partnering with Reinvent Telecom provides the tools and support necessary for future growth and to be an example of success in this dynamic market.
For more information on Reinvent’s Direct Routing solutions and how they can boost revenue and benefit your business, contact us today. It’s time to feel what it means to be a partner, not a number!