Convergence: Telecom Moving into Mainstream IT Channel

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1 Convergence: Telecom Moving into Mainstream IT Channel 20- Minute Channel Byte

2 Housekeeping Webinar is being recorded. Slides and recording link will be available tomorrow.? Contact informa?on is provided at the end of the webinar. #channelbytes 2

3 On Tap For Today Trends in tradi?onal IT services and telecom convergence Drivers behind IT channel s entrance into telecom Partnering trends between IT channel, telecom channel and providers Copyright (c) 2014 CompTIA Proper?es, LLC. All Rights Reserved. CompTIA.org 3

4 IT & TELECOM: NO LONGER SEPARATE SILOES 4

5 IT and Telecom Blending to Serve Myriad Ver=cal Industries Finance Government Manufacturing IT Industry $2T Telecom Industry $1.6T Legal Healthcare Retail Source: IDC

6 Customer Needs Growing More Complex Increasingly, customers are seeking providers that have mastered a blend of skills Ø Ø Ø Ø All things cloud Mobility integra?on, integra?ng mobile devices with the corporate network Unified communica?ons, integra?ng services such as instant messaging, presence, IP telephony and others. Telepresence technology, marrying phone systems with video capabili?es

7 As Are Their Strategic Business Priori=es for Next 12 Months Reducing costs/overhead Improving staff produc?vity/ capabili?es Reaching new customer segments 52% 50% 56% Improving data analy?cs for be`er/ faster decisions 42% Innova?ng more effec?vely 37% Improving opera?onal efficiency 34% Managing compe??ve threats 16% Source: CompTIA s 3 rd Annual Trends in Managed Services study Base: 400 businesses (end user)

8 Driving Factors in Entering Telecom Services Market Desire to offer voice services 46% Desire to add new business line To win new business 41% 40% IT distributors added telecom to porfolio Compe??ve threats from telecom channel To increase revenue/profits 24% 29% 28% Add on to cloud business efforts 15% Recruited by telecom master/sub agents 8% Source: CompTIA IT- Telecom Convergence Research

9 From the Channel Viewpoint: Convergence Where should tradi=onal telecom services fit into an IT channel firm s porxolio? Characteriza=on of telecom and IT channel rela=onship over last 2 years Opportunis=c element 32% Not a component 2% 66% Converging somewhat Staying same 2% 6% 34% 2% D/K 56% Core component Converging significantly Source: CompTIA IT- Telecom Convergence Research

10 Unified Communica=ons Driving Telecom Solu=ons Primary Telecom Offerings by VARs Today Ø Broadband/Wi- Fi access Ø Conferencing & collabora?on solu?ons Ø WAN services Ø IP/PBX 10

11 TO PARTNER OR NOT TO PARTNER 11

12 Partnering a Way to Help Bridge Skills Gaps With both VARs and agents needing to fill holes in their capacity to deliver cloud services, they are le` with the following choices Hiring or developing exper?se in- house. Referring the business out to an expert. Partnering with seasoned professionals to fill voids they cannot otherwise address.

13 Friend or Foe? Convergence Sparks Both Viewpoints VARs and Telecom Agents and Convergence Trends IT VARs said they now view telecom services as a compe??ve play and a way to differen?ate their brand 4 in 10 IT channel firms are highly concerned about the telecom services channel gelng into tradi?onal IT One- fourth of telecom agents (23%) said the roles of IT VARs and agents were "converging significantly." 57% of channel firms worked with a cable company to offer telecom services last year Carriers and master agents are diversifying their partner base to include tradi?onal IT- oriented VARs and MSPs. Source: CompTIA 2 nd Annual Big Data Insights and Opportuni?es study

14 What Are Your Op=ons for Partnering? Partnering discussions held with the following company types in last year 52% Telecom master agents 51% Telecom sub- agents 47% Telecom carriers 26% Cable company operators 26% IT distributors Source: CompTIA IT- Telecom Convergence Research

15 Who Ended Up Moving from Talking to Partnering? Breakdown of Partners IT Firms Worked with in Last Year 57% Cable Operators 51% Telecom carriers 34% Telecom master agents/subs 20% A/V specialists 68% of IT channel firms working with telecom carriers in the last year did so exclusively, while 32% also partnered with telecom agents. Source: CompTIA IT- Telecom Convergence Research

16 CHALLENGES AND BEST PRACTICES 16

17 Challenges to Entering Telecom Services Market Insufficient staffing 45% Lack of telecom- specific tech skills Compe??on from tradi?onal telecom agents Lack of sales experience 38% 37% 40% Deciding what to sell Customer preference for tradi?onal telecom provider Don't understand agent model (master or sub) 10% 30% 30% Source: CompTIA IT- Telecom Convergence Research

18 Not Every Channel Firm is Diving into Telecom Reasons NOT offering telecom services today Not our core competency 61% Diverts from core competency Insufficent resources Bad past experience Learning curve too steep Do not understand revenue model 17% 9% 9% 4% 30% Among the IT channel firms not involved in telecom today, 26% said they plan to pursue partnerships for these services in next year, while 35% said they had no inten?on to partner and 17% said they would offer telecom on their own. Copyright (c) 2014 CompTIA Proper?es, LLC. All Rights Reserved. CompTIA.org Source: CompTIA IT- Telecom Convergence Research

19 Success Factors and Priori=es for Partnerships What s Cri=cal to Making Things Work Rank VARs Agents Partner s understanding of my business model (49%) Formal business planning with partner (48%) Emerging techs and business models (i.e. cloud) (48%) Government regula?on and compliance (46%) Effec?ve communica?on (73%) Partner s pre-, post- and joint sales support (54%) Leads provided by partner (53%) Emerging technologies and business models (49%) Source: Channel Partners and CompTIA Agent- VAR Partnering Survey, January 2013

20 Five Key Ways to Mi=gate Risk in Partnering 1 Establish rules of engagement 2 Decide who owns the customer rela?onship 3 Agree on a revenue formula and who gets paid for what 4 Understand each other s business model 5 Formalize these partnerships and treat them as you would any vendor or manufacturer agreement

21 Closing Thoughts: Scorecard on Offering Telecom 1 Gained net- new customers as a result of having telecom services 4 Won a deal purely based on telecom services availability 2 Increased revenue with exis?ng customers due to telecom services 5 Did NOT gain any new revenue because of telecom services 3 Trained internal staff on technical and sales skills associated with 6 Lost business to a telecom agent telecom Source: CompTIA IT- Telecom Convergence Research

22 For more informa=on, contact: Carolyn April Upcoming Channel Bytes Webinars: Ø Mobility Part One - Five Things to Know about Dealing with Devices June 24, 11:00 AM CT Ø Mobility Part Two - Five Things to Consider Beyond the Mobile Device June 26, 11:00 AM CT Ø Five Tips for Gaining Trac?on in the Healthcare IT Market July 2, 11:00 am CT 22

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