Telecom resellers appear very slow to react to the reality that the days of on premise PBX for SMBs and Mid Size Enterprises are in significant decline. Rumors of an Avaya bankruptcy are getting stronger, further exacerbating a declining Yr over Yr revenue trend for Avaya and other on prem PBX sellers into this space.
Surprise! — no one wants to own hardware anymore. Ok, should not be a surprise at all. The metaphor started years back when smaller enterprises started moving aggressively to the Everything as a Service model [ XaaS]. Servers, Storage and Application Software — all have achieved better functionality with greater flexibility for the end customer in the XaaS model. While a very dependable dial tone is still mission critical for most businesses in the US and abroad, the hosted PBX from RingCentral, Microsft Skype for Business, and Comcast Business to name a few have risen to the occasion and deliver.
Where is a reseller supposed to focus for maximum profit opportunity? Professional Services focused on implementing this transition are a great place to start. The value proposition of migrating to a hosted, 100% IP based offering should be front and center for every Telecom VAR. The channel must become the XaaS migration expert for their SMB and Mid Size customers if they are to thrive moving into 2017.
As the Salesforce.com cloud universe convenes on San Francisco this week for the Dreamforce event, it is insightful to take a look at the 8,000 strong Salesforce.com partner community.
I see two key areas for partner value add:
1.) Extending the SFDC platform far beyond its traditional CRM roots into unique areas via partner owned I.P. (intellectual property).
Examples of partner owned I.P. typically include ISVs that have built unique extensions that leverage the power of the SFDC platform into whole new areas of functionality — all easily accessible on the Salesforce AppExchange. Look at RO Innovations if you want to drive easy online reference management and video testimonials, fully integrated with your SFDC CRM data, and an easy tab addition for your ADD sales team.
2) Customization of the platform using Force.com.
Smaller, vertically focused Professional Services firms are proving there is a big market in building out custom solutions. For example, Vertiba has carved out a niche as the #1 Salesforce.com Partner for State and Local government SFDC implementations that bust the myth that government IT are all about ineffective legacy systems. Vertiba has completed a number of projects ranging from grant tracking for the Colorado Department of Transportation to mobile based social case management for the Colorado Adult Protective Services unit.
Many in the channel complain that profits and value add are elusive with G Suite and Office 365. Maybe you should be checking out Salesforce.com?
A new report out this week calls for a 38% CAGR growth for Storage as a Service [STaaS] from 2015 – 2019. Impressive #s no doubt. While storage consumption in the consumer and business space keeps growing exponentially — no one seems to want to own disc any more! Traditional premise based storage is forecasted for only a 15% CAGR. Why?
Disaster Recovery, latency response times, and elasticity to regional demand are all increasingly driving enterprise IT to seek out AWS solutions like S3, and newer MSP / telco led solutions. Justifying a premise based buy, even with security concerns with cloud based storage, is increasingly harder for IT & Finance decision makers.
What role will legacy, transactional VARs adopt as this trend continues in 2017?
[ Data Source ReportsnReports.com]