By Kenny Soulstring
In a technologically driven world, interconnectivity has become the name of the game for businesses looking to streamline company operations and maximize revenues. From laptops to phones to robots, and anything else that comprises the “Internet of Things”, the ability to seamlessly access data anywhere and at any time is an invaluable component of any modern company.
While reliable access is crucial, there is also no doubt that cloud computing has revolutionized the way that companies and small business alike store and protect data, offering omnipresent and tightly secured access to owners most essential files.
And, with the growth of cloud-based applications on the rise, coupled with an absolute need to implement more comprehensive support for cloud computing technology, now is an opportune time for investors to focus on emerging companies that are taking advantage of proprietary and innovative technology to secure a competitive position in a multi-billion-dollar industry.
With no shortage of experience, and boasting a significant backlog of revenue-generating opportunity, Pareteum (NYSE: TEUM) may indeed to one of these emerging players, and is apparently on a mission to become a world-class leader in cloud communication and connectivity services.
TEUM Is Connecting The Cloud To The Masses
Pareteum is already a ripening competitor in the cloud computing sector, with a goal of helping their clients connect “every person and every thing”. The company’s targeted focus is to provide an all-in-one solution to businesses looking for ways to efficiently streamline application connectivity while generating additional revenue in the process. Pareteum’s unique and disruptive “Software as a Service (SaaS)” business model is propelling the company toward quickly becoming one of the fastest growing connectivity providers within their sector.
The secret has been out for a long time; technology is changing at a pace that far exceeds advances in any other industry. And, not to be left behind in the technological boom, the evolution of the internet has shaped its own needs, paving the way for “cloud” computing to become an essential tool that serves up tremendous integrated service benefits to almost any type of business. Taking advantage of the trend, Pareteum, under a subscription-based platform, enables its clients to connect with their customers efficiently, and at the same time interlink employees and business operations.
The innovative design of TEUM services allows clients the additional ability to meter, charge, and bill for any distinguishable usage of the platform, allowing businesses to generate revenue and gain informational insights from connected customers and their devices. Far from being classified as only a “large company” tool, the benefits of the Pareteum product can enhance businesses of any size, banking on the growth from the “Internet of Things” that continue to get integrated into a broad range of the tools people use each day.
Pareteum is not ignoring the large companies, though, and is facilitating its strategy to become a leading provider of cloud services to established communication service providers, including network telecom sector giants. While some of these telecom companies that are looking to implement connectivity services may argue that such platforms don’t require a third-party provider like Pareteum, they are naive.
Thinking it through, they need to consider the alternative solution: a time-consuming and pricey technological buildout under company time, or continuing to operate as-is and suffer potential losses as adaptive competition embraces the convenience and safety offered by cloud-based connectivity solutions. Further, if they decide to build out their own infrastructure, it will likely be obsolete before they even launch the network.
A Defined Road To Profitability
Not only is Pareteum targeting their strategic initiative to help their clients unify workplace operations and create additional avenues of revenue, but their unique business model is designed to facilitate low operating costs with high returns. Pareteum’s patent-protected, subscription-based SaaS model allows the company to operate without the need to invest in any proprietary telco infrastructure, removing most of the costly and restrictive headwinds faced by many of the company’s competitors.
Think of it this way: Facebook, one of the world’s most famous media owners, produces no content of their own. Uber, a world-leading transportation service, owns no vehicles. Likewise, Pareteum can provide valuable services that allow both its clients and Pareteum to generate substantial revenue, while Pareteum themselves remain free from the burden building its own network infrastructure.
And, when it comes to pathways of potential income, there has never been a better time to take advantage of the lucrative opportunities offered by a cloud computing platform. In the current user environment, connectivity is ubiquitous – in fact, customers get connected through integrated channels at far higher instances than they may realize. Thus, the opportunity is abundant regardless of when it’s recognized.
From consumer products such as smart watches and GPS navigation systems on modern automobiles, the Internet of Things (IoT) is estimated to encompass over 30 billion connected devices. This inter-connectivity offers accretive benefits to business and consumers alike, including data storage services, network interconnectivity, payment platforms, and more. But, while all of these may connect to the cloud in some way or another, there is still segmentation between the various platforms.
As business becomes more connected, however, the demand for universal and ever-functional connectivity will increase almost exponentially within those integrated relationships, requiring a service that can facilitate the application for data transfer. To put that in simple terms, Pareteum wants to be the company that keeps every user in the chain efficient, in the loop, and competitive within their sector.
Pareteum intends to seize this lucrative opportunity by providing a more seamless and reliable connection that can integrate communication to any device, despite its location. Then, through the services offered by Pareteum, clients can make use of cloud connectivity, machine learning, data analytics/insight, security services, and payment systems, including cryptocurrencies and blockchain systems. Pareteum offers their clients these services through three competitively priced suites of services, allowing companies to select the tier of services that best fit their business needs. The tiered model is inviting, and TEUM can scale services to meet the demands of business large and small.
An additional significant and competitive advantage held by Pareteum is their speed of delivery relative to DIY platforms that offer similar solutions. The company’s Managed Service Platform can bring a contract to cash in only 120 days, while the Global Cloud Services Platform and TEUM Application Exchange Platform boast a 30-day contract to cash schedule. Clearly, today’s technological environment has resulted in a perfect storm of conditions in which Pareteum is in an ideal position to take full advantage, reaping the benefits that come with servicing multiple avenues of revenue.
Don’t Ignore The $162 Million Contractual Revenue Backlog
Where investors should be placing a great deal of attention is toward the Contractual Revenue Backlog (CRB) number that TEUM shows in its most recent investor presentation. Now, to be clear, these CRB estimates are taken directly from the TEUM website and recent press releases, but keep in mind that not every business projection or strategic initiative is guaranteed to produce 100% results. However, many investors hold to a firm belief that the company will execute on recognizing a significant portion of these revenues over the next few years, which may serve as the ultimate value proposition for investors.