Let’s talk money

The changing landscape

In recent months we’ve seen considerable increases across a number of our key supply chains - a trend which is expected to continue through 2024. As you might expect, multiple factors are driving these increases. Some are having an impact on industries across the board, others relate specifically to the technology sector.

At every opportunity we’ve endeavoured to find cost savings to mitigate the price increases to avoid an impact on our customers. However, we’re now in a position whereby price adjustments are necessary, in order to maintain our current levels of quality and service.

Our commitment to competitive pricing remains unchanged and we’re now more determined than ever before to support you in finding the best solutions for your business. So, here we look at what’s driving the prices up and what your business can do to limit the impact.

What’s causing the price increases?

Investment in infrastructure

For the first time in our history, the future of work is more online than it is physical. With 20-25% of the workforce in advanced economies likely to be working remotely or adopting a hybrid approach, it is now considered essential for many industries to ensure their technology and systems can support this shift. Meaning businesses and employers are tasked with the responsibility of making sure everything runs smoothly and securely, wherever their workforce is based.

As a result, usage across networks continues to increase with businesses and customers relying on fast and reliable connectivity, more now than ever before. In turn, investment levels in networks, services and the latest technology are high.

Openreach is investing more than £15bn to cover 25 million premises (c80% of the UK) with Fibre-to-the-Premises (FTTP) by December 2025. Changes to how OFCOM regulate cost-based charges have opened the door for Openreach and its ability to recover this ongoing investment – all leading to significant price increases in the connectivity supply chain.

Find out more here about Openreach’s fibre broadband rollout here >

The future of telecoms

The price increases connected to the fibre broadband rollout, in turn cause the costs of the network maintenance to escalate. This work that is critical in order to move businesses and consumers from old analogue services, supported by the legacy public switched telephone network (PSTN), onto modern and futureproof technology.

BT’s aim is to move all customers from the old analogue PSTN to a fully digital network, ahead of the full PSTN switch off in 2025. As such, its price rises could be viewed as a strategy to encourage customers to shift to newer technology.

You can read more about the PSTN switch off here >

Inflation

Our supplier’s operating costs have increased. Whether it’s wage inflation, fuel and energy prices or global supply chain issues, most suppliers are feeling the pinch and passing these costs along the supply chain.

Mobile networks have implemented inflationary increases for many years, but with inflation having been in the region of 2% for a number of years, these increases have largely gone under the radar. With the Consumer Price Index (CPI) now running at over 4%, the impact is more severe.

Supporting a hybrid workforce

In a post-COVID world, it has become far more expensive to provide the right level of service and support to meet our customer needs. Let us explain this point a little further. Our customers (UK-based businesses) now operate from so many more locations than they were doing before the pandemic hit. For example, instead of a team being located in a single site office or location, businesses of every size, shape and sector, are now supporting hybrid workforces working from home, working remotely, from satellite offices, on a rail commute, working somewhere else in the world, and so on.

As a result they have effectively become multi-site and each person in the workforce requires fast, reliable broadband connectivity so they can work from home; mobile devices and data so they can work ‘on the move’; a phone system that keeps the team connected to colleagues and customers wherever they are in the world; and adequate cyber security measures in place to ensure they don’t pick up a virus on their laptop, due to their home network not being protected by a firewall.

We have seen a 22% increase in support tickets raised, per customer, compared with pre-COVID levels, with almost all of this increase being due to hybrid working environments and the need for our customers to be able to provide their staff with these essential tools no matter where they are working from.  Focus Group has been forced to right-size our support teams to accommodate these increased volumes and ensure that we are able to continue to maintain the right levels of service and support.

Microsoft price changes

Microsoft 365 has taken the world by storm, with over 270 million active users on Microsoft Teams worldwide. Hailed as the ‘digital king’ for its extensive suite of office based services, Microsoft is one of the most established digital suites in the working world.

Arguably hosting the most useful and business-savvy products on the market today, from Word to PowerPoint and all the dynamic working solutions in between, Microsoft have brought us products that have become an integral part of our work lives over the years, along with new additions that we now can't imagine working without.

Last year, Microsoft announced a significant price increase for its business customers. Since Microsoft 365 (formally Office 365) launched, its product suite has expanded to include a whole raft of powerful new applications including Teams, Power BI and OneDrive, as well as AI and automation capabilities. Its innovative products, together with the integration of applications such as Excel, Word and PowerPoint into Teams, have enabled effective communication, collaboration, security and compliance as many businesses moved to remote or hybrid working environments.

As of the date of publication of this article, Microsoft haven’t announced any price increases for 2024. If this changes at any point, we will be in touch.

So, what can you do about it and how can Focus Group help?

Ultimately, we all need to look at ways to mitigate against rising costs.

Whilst we’re not in a position to give advice on the best fixed rate mortgages, the team here at Focus Group are here to provide recommendations and support when it comes to keeping a lid on the rising cost of essential business technology.

So, what can you do about it and how can Focus Group help?

Ultimately, we all need to look at ways to mitigate against rising costs.

Whilst we’re not in a position to give advice on the best fixed rate mortgages, the team here at Focus Group are here to provide recommendations and support when it comes to keeping a lid on the rising cost of essential business technology.

Upgrade AND save

The old mantra rings true when it comes to technology - out with the old and in with the new. Legacy products such as analogue and ISDN lines or ADSL will doubtless become more and more expensive as Openreach look to phase them out ahead of the 2025 deadline. IP-based services are more reliable, less expensive to maintain and facilitate lower call costs so it makes sense to take advantage of the benefits sooner rather than later.

How we all work continues to evolve at an unprecedented pace, with fast and secure connectivity at the centre of that change. When it comes to implementing new technologies, we’re here to support our customers to ensure this new technology supports your growth ambitions and protects the future of your business infrastructure. And we’ll be by your side to keep your IT optimised, your business phone system at the top of its game, your data secure and your customers happy. At all times.

Let us talk to you about our full range of products and services. Whether it’s saving you money on your energy or implementing an effective hybrid working solution to maximise operational productivity, we’re here to source the right solutions for your business – at the right price.

Embrace the digital revolution

Digital transformation is the strategic integration of technology into all areas of business, fundamentally evolving the way you operate and deliver service to your customers. It enables you to embrace intelligent, tech-facilitated systems across your business operations – allowing you to thrive, grow and stay one step ahead of the competition. Digital transformation can mean anything from IT modernisation, such as a shift to cloud computing, to the implementation of a hosted phone system or harnessing the power of new technology to interact with customers in new ways.

As experts in our field, we will assess your specific business requirements and work with you to implement a bespoke digital transformation strategy. We’ll work with you to employ industry-leading applications and innovative tools to ensure your team is equipped to deliver optimum efficiency and unrivalled service – in the most cost-effective way possible.

Find out more here:

PSTN to next-gen. Are you ready? >
Digital workplace solutions >
VoIP phone systems for businesses >
Digital transformation services >
The ‘cost-of-doing-business’ crisis >