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.