The Evolving Channel Partners: From Reseller to Solutions Integrator Model Dave Michels, Lead Blogger TalkingPointz and BC Strategies Expert Steve Leaden. President, Leaden Associates, Inc. and BC Strategies Expert Tuesday, November 17, 2015
Who We Are Dave Michels Lead Blogger, Talking Pointz and BC Strategies Expert (303) 531-7538, dave@buffcomm.com, @davemichels TalkingPointz.com Steve Leaden President, Leaden Associates, Inc. Consulting and BC Strategies Expert (845) 496-6677, sleaden@leaden.com, @SteveLeaden
Quotes If VARs don t begin to shift to an SI model they are not going to make it. Jim Burton, BC Strategies I will buy that for a dollar. Dave Michels referring to your hardware reseller business and RoboCop. Industry trends are outside your control. They will happen whether you choose to participate or not. Steve Leaden, BC Strategies
The Level Channel 11/24/2015 UC Summit 2015 4
Profits are Being Leveled 11/24/2015 UC Summit 2015 5
VAR Definition (VAR) is an independent business or vendor employed to enhance original equipment manufacturer (OEM) product. VARs purchase OEM product to provide turnkey and/or customized solutions to end users. Source: Technopedia
SI Definition A System Integrator is an organization that implements enterprise-wide IT applications within an organization. System integrators are professional entities who govern the deployment of a complex IT solution (software, hardware, networks, hybrid IT) Source: Technopedia
DISRUPTION: No Industry is Safe The classics: Travel Agents, Taxis, mapmakers, bookstores Power: Solar and wind Cars: Electric Software based Dealers Self Driving Movies and television: Internet FedEx and UPS: Amazon Local, Uber Delivery 11/24/2015 UC Summit 2015 8
VAR Legacy TDM UC Cabling Carrier Networks
SI Legacy TDM UC Databases ERP CRM ECM Server Internal Applications
VAR Characteristics Sells the traditional way (like any other vendor) Provides typical services, SW Dependency on legacy income UC is an add-on (not core) Sells telephony, cabling, carrier Sells a product and Survives
Bah bah bah Blah blah blah
I promise you'll be happy, And even if you're not, There's more to life than that ---Don't ask me what. 11/24/2015 UC Summit 2015 13
Price Competition Local Retailer Big Box Retailer Walmart Amazon AliExpress 11/24/2015 UC Summit 2015 14
SI Characteristics Embraces new technologies sees shifts coming Drives customer value Sells a solution, not a product Provides customized, unique services The cloud is a core part of the firm s strategy
You re At Risk If You re selling and servicing Telephony ONLY. Telephony alone is irrelevant You are NOT adding value as an SI You are NOT embracing UC trends. Cloud, full UC suite,. Viral Trends - video, IoT, Big Data, Biometrics, SDN You re selling premise ONLY. Cloud is HUGE, premise is NOT the only channel
Gartner Forecast 3Q-15 Telephony and Messaging 2012 2015 2019 Premises-based $13,422 $10,970 $8,245 Cloud-based $4,461 $8,139 $13,423 Conferencing 2012 2015 2019 Group Video Conferencing Systems $2,247 $2,001 $1,875 Premises-based Video Infrastructure $740 $371 $216 11/24/2015 UC Summit 2015 17
Cloud Strategies The Cloud is An Industry Trend (demise if not embraced) Create a Division for Cloud Focus Design / Build A Residual Revenue Model Leverage current services for cloud Train Sales and Technical Staff - Cloud- Based Model Focus on a Five 9s Model Consider a Hybrid Model Managed Services Model Private Cloud Solution Align With Carriers To Sell Quality Of Service-Based Networks Choose Your Partner(s) Carefully
Reseller Value Roles Distributor: Local feet on the street Inventory Service, repair Factory Trained Certifications Physical Stuff: Installation, Wiring, on-site training, phone labeling. 11/24/2015 UC Summit 2015 19
UC to UCaaS Myths and Realities Myth 1. Existing channels provide protective barrier from new competitors 2. UC complexity is too high for self-service 3. UC product expertise will carry over to UCaaS 4. End users prefer cloud Reality 1. Vendors and channel partners find the transition to recurring revenue very difficult. 2. Intuitive portals are key to success for SMB. New service oriented channels are emerging for enterprise 3. None of the past UC leaders are leaders in UCaaS 4. Most people don t care or know where services are hosted or stored 11/24/2015 UC Summit 2015 20
Cloud Services You DON T Give Up Deliver on endpoints Project management Network assessments Cabling infrastructure Data network infrastructure Carrier infrastructure Training services Hybrid solutions NOC monitoring services Professional services for Contact Center, UC
The Value of the UC Channel Traditional Local sales presence Complex sales quote Cable and installation Local inventory Esoteric know-how Market Coverage In-person Training Support (trucks and ladders) Cloud Integration Vertical specialization Hardware support if needed (A/V rooms, CCTV, Wireless ) Bundled services Bandwidth Vertical Applications Managed Services 11/24/2015 UC Summit 2015 22
Channel Transitions Less Margin to Go Around Margin from Resale will decline Products and Services Channel is shifting from resale and delivery to expanded offerings Need to build Revenues around Consultative Services Know How Verticals: healthcare, hospitality, legal Functional: Accounting, HR, marketing Analytics Business Process Improvement Specialists (consulting, managed services, professional services ) 11/24/2015 UC Summit 2015 23
VAR or SI You Choose
Questions?
Thank You! Steve Leaden President, Leaden Associates, Inc. Consulting and BC Strategies Expert (845) 496-6677, sleaden@leaden.com, @SteveLeaden Dave Michels Lead Blogger, Talking Pointz and BC Strategies Expert (303) 531-7538, dave@buffcomm.com, @davemichels TalkingPointz.com