Challenges for Traditional Telephony VARs … From Telecom to WAN Specialist?
As we all know, VoIP gets more popular by the day and VoIP solutions don’t have to be heavily pitched anymore to convince buyers that IP is the way to go, many IT decision makers already heard the buzz and know about the beauties of the technology and committed to replacing legacy with IP enabled solutions. On the other end of the telephony industry, many vendors already offer a wide variety of VoIP solutions however, Value Added Resellers (VAR) and Value Added Distributors (VAD) need to fill in the gap to deliver the technology that is reaching maturity. This is a stage where things work but still requiere a high level of expertise; partially to be delivered by better design but also by better driving skills on the end-user side.
It can’t be denied that a large number of VARs are already succesfully deploying Voip solutions that range from adding a remote extension to existing Pbxs to installing complete new multi location IP-pbx systems. Either, we cannot oversee the large number of newcomers from diverse backgrounds such us networking, programming, or telecom that learn about the Voip and correctly believe there is a great market for it.
Many Vars especialized in telephony and PBXs that see their core business diminishing are quick to jump to embrace VoIP as a add-on and expand their business complementing their offering with a VoIP productline. Many of them though never had the chance to prior develop any experience of implementing computer based solutions with all the networking, programming or TCP protocol related issues that need to be managed because copper, mololitic proprietary solutions and decades old PSTN standards didn’t require that knowledge and had its own paradigm and field of expertise. I call this group the ”telephony guys”. They are the most challenged of all newcomers to Voip because of their lack of the underliying experience and knowledge base required to effectively and professionaly deploy Voip systems. Or worse have to troubleshoot a VoIP implementation, however they also have some advantages. They have a great understanding of PSTN, telephony features and terminology. For example “Telephony guys” know very well what are FXS/FXO ports, T1s, CAS or PRIs. They also have great experience on how users should use the phone system effectively and how to configure the system. On the downside they lack a deeper understanding of ethernet, Qos, IP addressing, subnetting, IP routing, VPN or the SIP protocol. They are ideally fitted for selling VoIP services as add-ons to existing legacy switches with products like SIP trunks. In that area the Legacy reseller has a huge advantage because IT people have no knowledge nor will ever really get any comparable understanding of the legacy world. It will take a long time before conventional legacy systems disapear, if ever, and conventional PSTN - TDM networks are completely replaced.
Long-term telephony guys have no realistic alternative than to learn more about IT. They should get immersed in VoIP to gain and then keep up with the new wave and market change. Otherwise, they will fall backwards into the lower paying manual labor for installing hardware or performing mechanic configurations. VARs belonging to this group would slowly decline until disappearing unless they take action and complement their expertise with IT.
It will pay off for them because the services they can offer will be a lot broader. The new evolved “telephony guys” would start offering complete solutions adding network switches, routers, bandwidth management devices to telephony offering in their solutions competing with “IT guys”. Traditional telephony solutions implementers will face competition from tradicional IT/network VARs in the PBX-telephony space as well.
As in other industries the most profitable revenue comes from services. In our case most of the hardware is based in comoditized CPUs, memory and boards. The real value comes from intangible software. The competition among hardware vendors is fierse and margins are minimal. Vendors in this space can’t afford to offer free help to their customers (even when facing software bugs), as opposed to conventional telecom hardware vendors. This is the way it is and IT solutions end users expect and are used to that. New generation telephony guys will learn to optimally charge more for service and support to their customers but they will also have to learn that they need to pay upstream in the chain for second tier support. In many cases they’ll be surprised to find out and reluctant to believe that services and support are much more expensive than the hardware. This breaks the paradigm of direct relationship between hardware and service cost.
In an ever changing world adaptation is key to survival. In this case there is not a complete analogy to Darwin theory because adaptation is in our hands, technology and products can be learned. But it must be understood that it takes energy, time and money. In the meanwhile to avoid entering the space to late, telephony guys can rely technologically on their vendors that most likely already have good Voip products, expertise and training programs in place to help them.
This is why ABP offers a complete reseller training program involving, VoIP Fundamentals, IP PBX, IP Phone and Gateway Configuration and Trobleshooting, Professional VoIP and IP sales training classes.
For all beginners and committed reseller one of he best learning forums is ABP’s IP Sizzles, this year scheduled for July 24-25. (Plus half day for existing partners ahead of meeting and bonus day for training of new partners at the end.) Check it out if you are considering to jumping into the VoIP or IP communications space.
Henry
