Sunday, November 25, 2012

Cbeyond 2.0 Results

How much is cloud revenue for Cbeyond - what is now called Cbeyond 2.0? "Cbeyond 2.0 revenue was 7.8% of total revenue in the third quarter, an increase from 6.5% last quarter."

Average monthly revenue per customer (ARPU) of $640 in 3Q2012 down from $645 in 2Q012, $658 in 3Q2011. [marketwatch]

Frost & Sullivan recognizes Cbeyond's strong competitive strategy in a report, "The close relationship that Cbeyond develops with its customers through direct sales gives the company a unique view into its customers' strategic plans to evolve their own capabilities. These relationships not only help Cbeyond address customer needs, but also monitor competitors that might be attempting encroach on its customers." The report continued with "Cbeyond leverages available market research to identify the latest market trends, for third party validation of emerging opportunities and threats to its core markets, as well as to understand the greater affects of macro market forces on its initiatives."

Cbeyond is slowly turning the ship, but in the process revenue and ARPU will continue to shrink. Why? Because cloud services, unless wrapped around telecom circuits, tend to cost less than voice and data.

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