January 1998

BY DAVE CURLEY

There’s no denying that the market for computer telephony (CT) enabling platforms and applications represents a huge opportunity for Value Added Resellers (VARs). One recent study reported that almost 50 percent of companies surveyed had intended to deploy voice applications over their corporate LAN before the end of 1997. As the market for CT continues to grow, a key question facing CT manufacturers centers on the skill sets required by VARs to successfully bring this new breed of products to a marketplace that is increasingly eager to implement them — principally a smaller business marketplace that expected to grow to upwards of 1.5 million companies of under 100 employees by the year 2000.

DATA VARs TAKE THE LEAD
At first glance, it would appear VARs coming from the data side would have at least one important leg up on those from the telecom world. After all, many of the new CT-enabling platforms are software-based servers that integrate voice and data on any industry standard Microsoft Windows NTbased LAN. These solutions can be positioned as the addition of voice as just another application on the network. When potential customers start to understand CT from this perspective, one might assume that their first inclination would be to look to the same people who sold them their LAN or integrated their current systems when they begin considering CT solutions. Score one for the data VARs.

You might also expect data VARs to be somewhat more versed in and experienced with the kind of “solution” and “application” sale demanded by these new CT products than their counterparts from the telecom world. Data VARs are experienced in selling, integrating, and supporting open systems and solutions, whereas telecom VARs are more involved in selling and configuring closed systems. Data VARs are accustomed to selling upgrades and add-ons, whereas telecom VARs traditionally haven’t seen the same frequency of software and hardware upgrades, new version releases, or new product offerings as those in the IT world. Add a few more points to the data VAR side of the ledger.

TELECOM VARs FIGHT BACK
But, as those of us who come to CT from the telecom side have pointed out more frequently recently, there are important differences between typical data applications and voice. We can all live with our computer system going down for a short time, but one second without voice communications is one second too long for just about any customer. Voice is still one of the most critical of the so-called “mission critical” business applications, and telecom VARs who’ve cut their teeth dealing with this key issue of reliability have a lot to bring to the CT table on that score alone — which is one very important point in favor of telecom VARs.

Of course, today’s telecom VARs aren’t without solution or application sales experience, either. Open, standards based, distributed PBX platforms have more in common with the IT world’s client/server model than with the main-framestyle PBXs of old. For telecom VARs, these are system sales that are accompanied by integrated LANbased applications like voice messaging, call center, and help desk applications. Many of these new generation PBXs are even centrally managed via software applications running on the LAN. So give the telecom VARs a few more points.

BOTH SIDES OF THE EQUATION
On final analysis, VARs from both sides of the CT equation have strengths they can use to their advantage, and potential hurdles they must overcome. For CT manufacturers, today’s challenge is to recruit VARs who have a track record of early adoption — regardless of whether they come from the data or the telecom side — and then provide them with the tools and incentives to push CT solutions out into the marketplace.

The most important selling tools that VARs need right now are products — in the form of quality CT applications. After all, not many customers are about to purchase the new CT-enabling platforms without having some notion as to what they’re going to do with them. CT is a solution sale — no solution, no sale. A recent study commissioned by Mitel Corp. identified some of the key CT application “hot buttons” for potential customers, including: PCbased access to telephone features; unified messaging; database integration with screen pops; and remote access to LAN-based messaging.

To be certain, there are some excellent CT solutions available today for each of these applications. For example, in a recent VAR recruitment campaign via Tech Data, Ingram, and others, the Mitel MediaPath Server was bundled with Digital’s “ITSME” application and positioned as a complete unified CT messaging solution for small business (complete with introductory VAR discounts).

Still, there is obviously plenty of room and demand for more CT applications. In fact, for application developers, the CT field is wide open right now. That’s why we see CT manufacturers putting a lot of effort and resources into CT developer support programs and strategic alliances aimed at bringing new applications to the marketplace. Developers getting into CT need some basics: call control toolkits that let them design CT applications in a Microsoft environment, using languages like C, C++, and Visual Basic, and working with TAPI and WAV compliant APIs. Developers also require training and support, lab systems for application development and testing, and product verification and certification. Special pricing on platforms and new software releases doesn’t hurt either, plus the incentive that a developer’s solution could potentially get the full backing of and access to the market presence and channels provided by manufacturer.

The objective is to open developers’ eyes to the potential of CT, get them excited, and then provide them with the tools and support they need to develop the application solutions that will make selling CT a lot easier for our VAR friends. New applications that provide CT solutions are obviously one of the essential tools VARs need to gain CT marketshare — and in the short term, developer programs are probably the best way to accelerate time to market for new applications. But just like developers, VARs are also looking to manufacturers to provide support programs geared toward preparing and equipping them for selling in the brave new world of CT — and they expect on-going sales and technical support as well.

Dave Curley is the vice president of worldwide marketing for Mitel Corporation’s convergence portfolio of CTI solutions, platforms, and applications. Mitel designs, manufactures and markets systems, sub-systems and microelectronic components for sale to world markets in the telephony, computertelephony integration (CTI) and communications industries. The company’s products include voice communications systems; public switching systems; network enhancement and gateway products; CTI systems and applications; client/server telecom products; custom silicon wafers, integrated and hybrid circuits, and optoelectronic devices. Mitel’s leadership strategy is centered on advancing people-topeople communications in an open, distrib-uted and standards-based environment.

At Mitel, our recruitment efforts are aimed at both a select number of our own telecom VARs (those who we have identified as interested in or likely to succeed in CT), as well as at VARs on the data side with whom we have had little or no previous contact. The idea is to develop “hybrid” channels that capitalize on the strengths of both data and telecom VARs.

Once VARs are on board, a good VAR program should consist of tools, training, and incentives designed to get VARs up to speed on CT, and to help them hit the ground running once they’re ready to sell. Upfront incentives to sign on to such programs can include benefits like pricing discounts on the purchase of CT systems for inhouse and demo use, a demo loaner program, and free technical support on the VAR’s first few system installations. Sales training packages and access to online sales support are also important in helping VARs identify and qualify potential CT customers, to show them how to position CT enabling technology, and to show them how to use the CT applications available to make the “solution” sale. Of course, the program should also offer around-theclock help desk and online tech-nical support, plus marketing and promotional support. Added benefits and incentives for top performers could include items such as coop advertising programs, field trial programs, and even direct Web links with the manufacturer’s site. There’s nothing really new about this type of program — except for the product whose market penetration it is designed facilitate.

Ultimately, VARs, whether they come to CT from the data or the telecom side, are looking to manufacturers to help deliver the products, instill the confidence, impart the knowledge, and provide the support they need to sell a whole new type of solution. At the end of the day, a CT marketing strategy based solely on pushing product through VAR channels isn’t likely to succeed on its own. Manufacturers must also do their part to generate both awareness of and greater demand for CT solutions and their VAR partners as the providers of those solutions.