Are Low Broadband Speeds Hampering UK SaaS Vendors?
SaaS vendors have a number of different concerns to contend with, such as the changing market trends for both consumers and businesses, the increasingly competitive market and the concerns over data security. But could broadband speed be adding to these concerns? How are the broadband speeds in the UK affecting its SaaS vendors?
According to research which was conducted earlier this year, the average UK broadband speed has increased by 10% over a six month period, increasing from 6.2 to 6.8Mbps. Despite this apparently strong growth, research also revealed that the difference between the advertised broadband speed and the experienced broadband speed has also seen a remarkable increase. This ultimately means that there are a number of users who do not receive the speed of service sold to them. In 2007 for instance, it was found that the UK, while advertising 10Mbps services often only delivered broadband speeds of closer to 3Mbps.
Comparing this data to that compiled almost five years ago shows a marked increase but also demonstrates the UKs low broadband speeds in comparison to other countries.
Countries such as France were advertising excessively high speeds of up to 28Mbps while even Germany was able to beat the UK’s average with their own result of 4.8Mbps. Sweden were said to advertise a speed of up to 21Mbps but deliver only an average of 7.4Mbps. Japan was shown to be one of the quickest broadband providers during the investigation, having an average speed of 10.6Mbps in those areas which were tested whilst boasting an impressive average of 93Mbps according to the OECD at the time.
Whilst the data is a few years old it is logical to assume that developments made in the UK with regards to broadband speeds have been mimicked elsewhere, meaning that broadband speeds will have increased universally in line with technological advancements and developments. In fact, further research in July of last year stated that 29% of European broadband lines have increased to speeds of at least 10Mbps on average, a figure which is almost twice as many as those recorded hitting the same speeds in 2009.
The difference in these speeds is caused by a number of factors but one of the main causes is the quality of the copper telephone lines. For example, the standard of these lines in France are much higher than in the UK causing a marked difference in the speed of broadband service. Broadband speeds also depend on whether DSL technology is utilised, which has notorious limits. Those with higher broadband speeds typically use VDSL or fibre based connections.
The UK therefore has comparatively low broadband rates when compared to other countries and this revelation could be causing difficulties for SaaS vendors.
The problems that this is causing for SaaS vendors is not simply that their product is less effective (due to its online and internet based nature) but also translates to a reduced and limited demand for the service. The slower broadband speeds mean that a number of users would fail to identify some of the benefits of SaaS services as they would be given false impressions of the service due to slow broadband speeds and potentially unstable internet connections.
Not only does lower broadband speed equate to a limited and reduced demand for SaaS services but it also acts to restrict the services which can be offered by UK based vendors. Broadband speeds do not just affect local, desk based PCs but also affect mobile devices such as tablets, laptops and Smartphones which all utilise wireless internet connections in order to access sites and data.
SaaS services use the growing prevalence of these devices to drive their sales but people will be reluctant to use these services from their mobile devices unless they receive an efficient and reliable level of service. The slower service means that SaaS providers have to be careful about what services they offer in order to make sure that they are compatible with the broadband speed which is available.
This article was written by Workbooks, leading supplier of CRM software. This article was written by a guest author. Would you like to write for us?