April 1999

Resellers: Cash In On Convergence

BY RICHARD MEDEIROS

Whether you are a data reseller or an interconnect, it's time to get on board with Internet telephony. The technology is here, your customers want it, and it is to your advantage to exploit this rapidly emerging technology.

Recent major industry announcements provide clear indications that Internet telephony and other forms of convergence are forces to be reckoned with. AT&T's acquisition of cable giant TCI; Sprint's blockbuster announcement that they will rebuild their global network infrastructure to support convergence; the proposed acquisition of network powerhouse Bay Networks by Nortel; Cisco's acquisition of Selsius Systems; and Nokia's purchase of Vienna Systems are just a few examples - clear signs that convergence is gaining significant momentum.

I came to the realization a while back that convergence was inevitable, and that to ignore or resist would mean risking my business. What brought me to this point? Over the last three years, 70 percent of the request for proposals (RFPs) I've received have included convergence at some level, and my customers frequently ask me Internet telephony-related questions. With competitive prices and better quality, this technology is becoming an increasingly attractive option.

To the reseller, this is a lucrative opportunity. In addition to technical advantages, convergence provides the opportunity to offer an entirely new set of business solutions to the customer while becoming a single source for data and voice network solutions. And by offering both voice and data network services - over one wire - the savvy reseller can help consolidate a customer's vendor and infrastructure costs, reduce operating costs, and boost productivity with available software and CTI applications.

THE RELIABILITY CHALLENGE
As all interconnects know, there is no room for failure when selling voice products, and customers won't accept interruptions of service. Data networks simply do not approach the standards of reliability set by the phone side. For data resellers moving to the voice end of the spectrum, this level of expectancy will take some getting used to.

An equally challenging situation faces the interconnect - technology. The volume of options available to a voice reseller who has relied on a business appliance that has been relatively unchanged over the years can be disconcerting. When dealing with data network hardware, software, firmware, and the issues that come with mixing and matching a variety of systems and applications from a variety of vendors…it's no wonder telecommunications equipment manufacturers have clung stubbornly to proprietary architectures for so long!

After all, a phone is a phone. There are things customers expect (and don't) of the telephone no matter whose logo is on the nameplate. On the other hand, people demand more and more of their data networks. And why not? Hardly a day goes by without some developer making claim to a new product that will help everyone do his or her job faster, better, and smarter.

So the key to making the transition from a single-source reseller to a converged reseller is to find the right technology, one that bridges and blends two vastly different worlds.

In my experience, LAN-based telecommunications systems are preferable, and the most important factor in this reasoning is reliability. By functioning independently of the network operating system, the phone system remains fully operational if the PC or network server crashes.

Frankly, I'm a little uncomfortable with the idea of running voice through the network server itself. The world has come to expect less than perfect performance from its computer systems, but I can't take any chances with the reliability of the telephone systems I install. There are solutions that recommend maintaining one or two traditional phone lines as a backup, suggesting that there exists a very real possibility that something could go wrong. That's not the sort of message I want to convey.

A DEMAND FOR QUALITY
Quality of Service (QoS) issues will also play a major role in the success or failure of convergent communications solutions - if questions of reliability rank first on a customer's list of concerns, QoS follows a close second. If a conversation sounds like it is taking place over a string stretched between two soup cans, it doesn't matter how "cool" the technology is.

But packet-based telephone systems can offer customers much more than just exceptional reliability and quality. By combining what's best about telephones with what's best about data networks, these systems can provide the customer with added benefits - and the reseller with an the opportunity for additional revenue. How? By converging your customers' voice and data networks, you become the sole provider of both data and voice services, providing a lucrative opportunity to sell into your existing customer accounts.

But customers are rightly sensitive to any suggestion that a system sold to them last year be discarded for the latest gadgetry. Would it not be better to offer a solution that allows the customer to simplify their network and its administration? By bringing voice and data together over one wire with IP, you've created a reliable, standards-based network that is open, flexible, extensible, and powerful enough to meet the communications needs of today's businesses.

A CONVERGENCE SOLUTION
Internet telephony solutions combine the reliability and functionality of advanced telephone systems with the power and scalability of networking solutions. Analog audio signals are reformatted into digital packets and sent through the network in real time over a dedicated virtual channel, eliminating latency. Customers get familiar and dependable voice communications with required features such as voice mail, e-mail, and Internet connectivity. And while most CTI systems can require 20-30 seconds to execute a screen pop via a modem over analog phone lines, it takes mere milliseconds to provide screen pops through an analog port off the LAN.

Choice between a traditional telephone and browser interface is key, too. PC- and browser-based tools are important for system maintenance and administration, but if the desk-bound warrior is unable or unwilling to accept the change, the system's value is greatly diminished.

Most of the IT decision makers in small to mid-size companies are not yet fully aware of the voice potential of IP, but they are going to find out one way or another. Equipping yourself with the knowledge and partnerships to deliver a viable, full-feature converged communication solution today gives you the drop on your competition. By educating your present and potential customers through demonstrations and, most importantly, showing the cost savings that can be achieved, you can guide your customers into the world of Internet telephony and become their single-source IT vendor in the process.

Better still is the prospect for establishing longer-term relationships. Think about it. The average life of a telephone system is five years, while the average life of a network server is 18 months. Each time a major appliance needs to be replaced, your customer is presented with an opportunity to find a better deal - maybe from someone else.

Richard Medeiros is president of Voice Systems, Inc., a voice and data reseller located in Canton, MA. Their product line includes digital telephone systems, automated attendants, and voice mail for making businesses more efficient. The company offers outright purchase or lease purchase agreements, and will design systems to fit individual needs. For additional information, contact Voice Systems at 800-241-8500, or visit the company's Web site at www.voicesystemsinc.com.