On Rad's Radar? - backup Archives

Dell Gets WYSE

2012-04-02T16:30:19Z

Dell announced that it is acquiring WYSE today. WYSE is known for its dummy terminals, particularly for POS (point-of-sale). WYSE also has gotten into desktop virtualization - not that strong a leap. Wyse has shipped more than 20 million units and has over 180 patents, according to the press release. This acquisition "extends Dell's desktop virtualization capabilities and drives attachment of enterprise solutions, including servers, networking, storage and services."

The other piece is that WYSE has 3000 partners. Too bad a CLEC didn't think to buy it just for that new channel.

Dell is an interesting company because while it is known for hardware - PC's, tablets, gadgets and servers - Dell is making the move to cloud.

__PLACEHOLDER__

Going back to December 2010 when "Dell announces the acquisition of the cloud-based medical archiving leader InSite One to help healthcare organizations simplify retention of healthcare data." The PR says, "Additionally, like Dell's recent acquisition of Boomi, this acquisition builds on our strategy to help customers take advantage of the economics and scalability of the cloud in the way that best fits the requirements of their industry and the needs of their business." So while Dell chases the Cloud, it seems to be doing it in a hardware-services model. In other words, VAR's are used to selling hardware and wrapping one service around it. Dell is still doing it. InSite One was image archiving for medical - basically, managed storage.

Storage - like InSite One, Compellent and EqualLogic.

Networking: Force10 Networks and SonicWall. Both also spill over into Security in the managed security segment, which falls in with Dell's SecureWorks and KACE divisions. Security is supposed to be a big game to be in. Dell is buying into that space. I wonder how many VAR's it picked up with Force10 and SonicWall... 1000?

Next, AppAssure backup and recovery was an obvious move to become more of a managed services provider -- or to empower its VAR's to become MSP's. That might be the strategy: empower its VAR's to become MSP's all through Dell services (and hardware).

This puts Dell directly in competition with the VAD's - Ingram, Tech Data and SYNNEX. Who will get the attention of the VAR?

And to tie that strategy of a VAR becoming an MSP is the announcement that Dell Offers Partners 'Cloud Services & Solutions Certification'. That ties the MSP bow up.

I Can Do It Myself

2012-03-06T14:37:09Z

I hear this all the time: "I can do it myself!" Backup solution? No, I'll build one myself. Outsource your email? No, I can run my own email server. White-label VoIP? Nope. I'm going to spin up an Asterisk box and use that.

You think I am kidding, but I'm not.

Yesterday it was: We needed to re-do our Broadsoft portal. After shopping around, we decided to build it ourselves.

It makes me wonder about a couple of things:

Are you a hobby or a business? A hobby is when you like to tinker with technology. A business is something else.

Do you know what your time and effort is worth? It takes a lot of time and effort to build a solution, maintain that hardware and software, and support it. Add in licensing, backup, redundancy and security to that budget number. Factor in that while spending your time and effort on Building Your Own, you could have been doing something else -- some other priority, some other revenue generating activity, or personal time.

There is always a debate about buy versus build. There are many reasons to buy: faster to market, outsourced skill and support, no CAPEX, knowledge base, etc. Yet there are reasons to build: you want more control, special features, proprietary, etc.

In today's world, where most service providers don't market very well or brand themselves (or their servcies), buying is the way to go. Why? It isn't about you or what you want. It's about your customers and what they want. It's a speed to market. It's about capturing wallet. And you can't do all that by yourselves. You just can't.

When I examine VDI, VoIP/Hosted PBX, UC, backup and conferencing, there isn't any special sauce being pitched. To the marketplace, it's one big nosie box about the tech and its features. That's why it doesn't sell fast and that's why you don't have to spend the effort building your own (in my opinion).

Can you put a competitive service together that your customers will be happy with in the most efficient manner?

Don't look at the cost (unless you factor in your time saved), look at results.

What Else Are You Going to Sell?

2012-03-04T23:44:40Z

TDM is running out of runway. Agents have already switched to selling Ethernet, MPLS and SIP Trunking. What else can they be selling?

Back-up, like Conferencing, is a cash cow that Agents just don't sell. From archiving email per federal regulations to backing up laptops, smartphones, databases, customer records, billing and more "in the Cloud", online backup service isn't much different from Google (see Chrome ad) or Apple iCloud. Access to everything you need through an authorized device attached to the Internet is the beauty to Cloud services, but backing up data is vital to business continuity. How long can a business run without billing records or a customer database? Not very long. Think how flummoxed you are when you lose your contacts in your smartphone. Imagine that contact list was your business. That's why backup is important (to your customers). VAR's are already selling different versions of online backup: their own; a white-label from Remote Backup, DriveHQ or LiveDrive; and a resell of Carbonite (who is hugging Agents right now) or Intronis (who loves the Channel) or Anxient or many others. There are some like SugarSync or Mozy that backup your smartphone and your laptop to the same account.

Managed Security - most of the CLEC's (XO, EarthLink, Netwolves, Integra, Cbeyond), the RBOCs and the ILEC's (Windstream and CenturyLink) offer some type of security offering, usually Managed Firewall, IDS (Intrusion Detection Service) and Network Monitoring. As more data moves to the web (Cloud), security will become even more significant, in the form of email and application security, encryption, event and log management, and mobile device management. For example, Reflexion provides hosted email security, archiving and encryption services exclusively through the channel.

Hosting and email services - everyone has a website or blog; everyone has email. Why shouldn't you be offering those services too? XO started out as Concentric Network, a hosting company. This was Cloud before it was called that. XO sells Hosted Exchange and website hosting. Megapath just rolled out the Microsoft suite. Intercall offers Live365. It isn't big dollars, but it is a place to get your feet wet in Cloud and apps.

Managed IT - remote monitoring of servers and desktops - is a VAR service powered by software like Autotask, Connectwise, Kaseya and GFI MAX. As businesses are essentially dependent upon computers and technology to do business, managed IT services become an option when skilled technical support staff are too expensive, churned or unavailable.

A step past, Managed IT is the remote desktop - aka Desktop-as-a-service (a term I dislike) and VDI (virtual desktop infrastructure). In 1999, Wyse terminals were going to replace desktops for efficiency. It didn't happen (except in the POS space.) Now we are trying it again. MSP's offer this service - with a big fat helping of bandwidth. There are big names in this space, including Citrix, VMware, and Microsoft. There are also a number of providers, like IIS Group, who provide VDI through the channel. Navisite, which TWC owns, just chose Desktone as its DaaS partner.

Next to DaaS is HaaS, or Hardware as a Service. Don't ask me how this is different or how it isn't just leasing. Ask Chartec.

There are issues with selling cloud services - like the service provider's (SP's) financial position; redundancy and resiliency of the SP's architecture; SP's ability to scale in terms of on-boarding new customers properly and scaling tech support for end users; the end users' experiences as cloud services will change some business environmental factors; and licensing issues.

That being said, Agents should be surveying their current customers about the needs outlined here. Why? To get a bigger share of the customer's wallet.

Another way to look at it is: the customer is going to shop these services like he shops T1's, broadband, and voice. He might as well pay you to shop them for him, like he does for the telecom stuff. Get in there!

If you liked this, you might like this blog post too:

What about selling Cloud

One addition, I interviewed VAR Dynamics (local boys from Tampa) at ITEXPO. VAR Dynamics is a private-label Software-as-a-Service (SaaS) and Cloud business apps provider selling exclusively through channels. Apps include Microsoft Exchange, Microsoft Dynamics CRM, Microsoft SharePoint, Zimbra, BlackBerry BES, email encryption, email archiving and more. There will be cross-over in what a provider sells. Just as VAR Dynamics sells the Microsoft software and email security, CLEC's that you are already familiar with - like XO and Cbeyond - offer a variety of services to sell deep into your customers.

A Fun Chat with VAR Dynamics

2012-02-01T05:51:08Z

It started out coincidentally as VAR Dynamics CEO, Tony Francisco, was on my plane this morning. And he just recently moved from Silicon Valley to Tampa Bay, where I live. He is working with Gazelle Labs and spoke at BarCamp Tampa Bay, which is an un-conference I co-organize for the last 4 years. I had to go to Miami Beach to talk to him though. Go figure!

VAR Dynamics is the geeks in the cloud that run the servers that run the software that VAR's and service providers then re-label and sell to end-users. Back in the day, they would be labeled Master MSP as they enable MSP businesses. I called then an MSPE - a managed service provider enabler. Tony disliked that immediately. They are like the VAR Viagra - get them up and running on the Cloud in a day, fully turn key and automated through the magic of open API's. Tony didn't like that either, but his VP of Marketing, Darrek Porter, a man who was in politics once upon a time, did. This system allows VAR's to consume and re-purpose cloud apps in a self-service atmosphere.

I like it when the discussion is lively, more like buddies chatting over coffee than telling me your talking points. VAR Dynamics has almost 200 partners, which include telcos, VAR's and MSP's. What's the difference between VAR and MSP? Mainly mindset. Break/fix versus MRR (monthly recurring revenue).

VAR Dynamics white labels a lot of Microsoft products like Exchange, Sharepoint, CRM and soon Lync Lite. They also white label Blackberry Enterprise Server and Zimbra. Why Zimbra? "For those that don't like Microsoft." They have add-ons like archiving and "Compliancy", which means help complying with the myriad federal regs like PCI, HIPAA, GLBA, SOX, etc.

Francisco did name drop Autotask, ConnectWise, Jamcracker and Reflection as current or future partners -- again through the magic of well coded open API's.

Are you a company with a base of customers looking for MRR - "and control of their future"? Then VAR Dynamics wants to talk to you.

How do you control your own future? By selling white-label services, you are the provider - no carrier deciding that the bottom looks better when they stop paying commissions - so the monthly commission isn't going to get cut off, unless the customer leaves you.

End Caps

2012-01-21T14:49:32Z

This was the week that we learned that online protesting can work -- if enough people get involved and if you get the support of some powerhouse websites like Google and Wikipedia. It looks like SOPA was dropped and the vote on PIPA was delayed. (It is still alive due to Democrat lawmakers who are beholden to Hollywood like Florida Senator Bill Nelson. If he knew how to turn on his laptop by himself I could understand it, but come on!)

We don't really need any more copyright laws. If we did, would the feds have been able to fly to New Zealand to arrest the owner of MegaUpload? What was he arrested and renditioned for? Online piracy.

Not for nothing, but don't we have more important things to be spending federal dollars on? We are a nation with lost priorities.

And yet another carrier joins the CLOUD: "US Signal recently released an Infrastructure as a Service (IaaS) product offering, what US Signal calls Managed Data Center. Customers have increasingly requested US Signal to host their applications, for financial reasons, scalability, security, and more."

Yesterday, TCA held its monthly agent webinar with Netwolves presenting on Managed Services. With most of the telcos offering Managed Servcies, we at TCA thought it was time to give an overview of what Managed Services are from carriers, who is buying them and how does an Agent sell them. How does an Agent start that conversation with the prospect about managed services? The webinar was recorded and TCA members can play it back at any time.

Nemertes Research predicts a shortage of colocation space in the U.S. beginning this year. That is likely because some colo space is being used for PAAS and IAAS. Also, some colo houses don't want to sell colo any more because there is more cash in xAAS. (Or so they say.) I have seen that trying to find single rack colo slots are getting more difficult. Personally, I thought that when Amazon, Facebook, Google and others built their data centers, a lot of space would be opened up in other data centers.

The other issue with colocation is that Equinix, InterNAP and now Savvis have cut the channel out of selling their space. Other data centers - like Vegas' SwitchNAP - are difficult to deal with. That kind of affects colo sales, too. Luckily, ViaWest and TELX are still agent friendly.

Code 42 Software, a cloud backup service named Crashplan, got $52M in funding from Accel Partners. It seems a massive amount of funding for an online backup company.

Is 5G around the corner? Heck, most of the US is still in 2.5G-3G land.

Trouble at Vu

2012-01-12T21:09:35Z

Got an email that VU dumped their entire sales force this week! The email went on "They are in dire financial trouble and their CEO is facing prison for insider trading for his sale of his stock as CEO of Zenith Infotech prior to their sale to Summit Partners."

Not sure how accurate it is but Vu TelePresence is part of the Zenith World Group of companies. Summit Partners put some of their capital into Zenith Infotech spinoff, Zenith RMM, a remote monitoring service. The cash infusion was necessary because in 3Q 2011 Zenith missed a bond payment which sent speculation that the company was in trouble. The company says everything is fine and the cash will be used for acquisitions.

I don't know. "Today, nearly 3,000 MSP partners use the Zenith RMM platform to manage almost 400,000 endpoints." Do the math: that's about 133 endpoints per partner. How much can that bring in? Many Master MSP's have changed their business model because it takes scale to make money running your own NOC and being a wholesaler of service. But also that same scale can kill you -- too much payroll to make a profit. Zenith RMM recently changed its name to Continuum, probably to distance itself from the legal entanglements of its parent.

Zenith Infotech had a bad quarter too. "The depths of Zenith Infotech's financial troubles are becoming clear in its latest quarterly earnings statement, in which it posted a year-over-year loss due to declining sales and unstable foreign currency exchange rates," according to Channelnomics. Apparently, quarterly revenues in USD are about $10M and the sale of RMM was about $8.7M. I don't know how VU Telepresence fits into this picture. I do know that undercutting your price to take market share requires deep pockets and that's what VU was doing against Cisco gear. Lower price means less revenue and virtually (get it?) no profit. That doesn't help your cash flow issue. And all this press doesn't help you gain partners to sell more of your stuff.

3 Things Agents Need to Look at in 2012

2011-12-30T21:14:19Z

It will be a busy year in 2012 as all the carriers try to synergize their mega-mergers and get their back-office in order so that we can actually place orders.

Besides selling the traditional circuits - POTS, T1, SIP, PRI - there are some interesting things for an Agent to look at in 2012.

M2M is growing. We are seeing that the 3G/4G system is creeping in everywhere - from broadband backup systems to surveillance systems to fleet management to home healthcare monitoring to security monitoring. There are an unlimited number of ways that devices and the wireless network can interact. Think about the Kindle. There is money to be made in M2M.

More wireless but mixed with TEM. If you haven't moved your big accounts to TEM, 2012 may be the year you think about it. Auditing has increased in the last two years as governments (local, county, state) and medium businesses look for ways to reduce the ever-increasing telecom bills. (Cellular/3G/4G is big and growing, which is increasing the total cost of telecom spending.) Telecom Expense Management (TEM) can help accounts that spend more than $5K per month. It also makes the Agent the point person all the total telecom spend. It's a great way to become vital to the organization.

In addition, you can add Mobile Device Management. If a company has more than 250 employees, it likely needs help tracking laptops, data cards, cellphones and the like. There are software platforms for this to make an Agents life easy. This is yet another way to become integral to a clients business. Notice I'm not suggesting selling cellphones, but manage those assets for the business.

Lastly, there is Cloud and Managed Services. I'm going to skip cloud unless you want to sell apps to businesses. If you sell within a vertical, I would suggest that you certainly start selling apps into that vertical, because it will add revenue for you and make you the go-to person for all things IT and Telecom for that Vertical!

In Managed Services, we are seeing a few trends: hacking is increasing; security is lax; IT is pervasive in today's business environment but there is not enough money or staff to handle it all. That's where managed servcies comes in. If the company has a lot of empployees and a small IT staff, managed servcies would be a fit. Things to ask:

"What task would you like to relieve yourself of?"
"What routine task could we outsource to your ISP to free up your staff's time?
"You are consuming a lot more bandwidth, what are you doing about firewall and other security?"
"How are you tracking wireless spending and devices?"
"What would you do if a company laptop was stolen or lost?"
"How much private company data is on a smartphone or laptop? How much access does either device have to your network?"
"Do you backup your data regularly and off-site?"

You have to adjust for the changing times, unless you just want to push pipes. But your customers are under a strain to handle devices, billing, auditing, tracking as well as security and more. You can make some extra money -- and become more than just a sales guy -- if you move beyond the pipes and help your customers with the rest of the story. HUH? They buy those pipes from you for a reason. Help them with that.

Happy New Year!

Is All Broadband Going Metered?

2011-12-05T20:56:30Z

Many rural fixed wireless ISP's meter their service for network management and costs reasons. The spectrum is finite, which means that wireless ISP subscribers can only get a set amount of bandwidth from that tower. The backhaul from the tower would be the other limiting factor.

In cable systems, the backhaul to the neighborhood is the bottleneck. The next bottleneck is the Internet gateway - how big is the pipe to the Internet that the cable system uses locally (and just how congested is it).

The DSLAM is the bottleneck for most neighborhoods. And the backhaul is the next bottleneck. It's tough to backhaul a 48 port mini-DSLAM with 2xT1, but it is done. Often.

As you have seen on the commercials, VZW and Ma Bell limit your mobile data to 2GB and 5GB. Sprint does too, except on your smartphone, but according to reports today, will be stopping that practice and moving to caps as well. T-Mobile has caps.

Ma Bell and TWC both trialed caps on consumer broadband. Supposedly this bombed but we know that Comcast and others have bandwidth caps for consumer broadband.

Now CenturyLink is capping DSL. CenturyLink is announcing the following Excessive Usage Policy (EUP), which will become effective in February 2012:

CenturyLink's EUP applies to all residential high speed Internet customers and is only enforced in the downstream (from Internet to customer) direction. Video services provided by CenturyLink PRISM™ TV are not subject to the usage limits. The policy has the following usage limits per calendar month:

• Customers purchasing service at speeds of 1.5Mbps and below, have a usage limit of 150 Gigabytes (GB) of download volume per month.
• Customers purchasing service at speeds greater than 1.5Mbps, have a limit of 250GB in download volume per month.

This will be one more pinch point for the consumer. Consumers are streaming music, movies, TV, living on social media, and sharing media with their friends. Stores this holiday season are selling TV's and DVD players that are all Internet-enabled to stream GoogleTV, Netflix, HuluPlus, Pandora, YouTube, CinemaNow and more. (Heck, you probably read my rant about all the buffering I go through with BHN.)

Not only that, so many tele-workers are using consumer broadband from home, working in The Cloud (so to speak).

VoIP, web/video conferencing, Skype, Citrix and virtual desktop, VPN and security wrappers, CRM, backup, virus and software updates - that cap will be hit quick in 2012.

The funny thing is that most of it was poor planning on the network operators part. And because they are a slave to The Street, who still see telcos as rate-of-return dividend checks, the consumers will get pinched. So too will providers, when the consumers find out that the backup or the VDI app or whatever is costing them $10 extra a month, it's out. Watch.

Lessons in the Cloud

2011-09-12T22:02:57Z

One of the great lessons in the Cloud is how do you sell it?It all comes down to the messaging (marketing or story you are telling) and the sales approach (or technique).

Sitting with Jeff Uphues of Cbeyond Cloud today at ITEXPO, we spoke about the lessons that Cbeyond has learned about selling cloud services.

Cbeyond has 800 direct sales and about 2000 channel partners, who are taking their Cloud Services to the marketplace – not just in their 16 markets but nationwide. (Cloud can go anywhere there’s decent Internet access.)

Zane Long is the Channel Head at Cbeyond who has been responsible for making it easier for channel partners to do business with Cbeyond. Making things simpler and easier is the key to Cbeyond Success. By assisting channel partners with collateral, messaging, and sales tactics, Cbeyond has enabled their channel to grow ARPU. (About $200 of ARPU for the cloud customers above the telecom spend.)

As Cbeyond makes the transition from CLEC to Cloud Provider, the barrier to sales has been the messaging. It’s very challenging to talk to a business owner about PaaS or Iaas or bytes, RAM, GB, and CPU cycles. Let’s face it: who understands that? More important: Does the buyer care? No. What do Business Owners care about? Her business, profit, assets, customers and employees. The buyer does not care about IT or technology. The buyer just wants the technology to its job. (Frequently that’s why businesses hire VAR’s or MSP’s).

The other key for Cbeyond is disrupting the current model. So while they sell three figures of PBX units per month, the new pricing scheme will create some friction in the marketplace as PBX sales migrate from per seat to company size pricing.

Keep an eye on Cbeyond as they move further into cloud and the CLEC (Access) piece becomes less the focus.

A Failure to Communicate

2011-04-06T18:01:07Z

In the Agent space, many non-telco vendors (like Conferencing and Hosted PBX providers) have tried to get traction. Sales traction from this independent sales force. It isn't going well.

Agents (and VAR's) spend about 80-99% of the work week in the comfort zone. That is, doing what they have always done. Selling what they have always sold. Selling the same way they always have.

Growth only happens in the Dis-Comfort Zone.

So providers have asked to co-market to the VAR or Agent client base. Maybe that happens one time. Maybe the results are "not worth it". So it doesn't happen again.

What's the Problem?

Well, Marketing requires Repetition - Not One and Done. There are 4 factors for marketing: list, headline, offer and repeat.

It could be that the Value Proposition for the new service (could be conferencing, data backup, efax or whatever) doesn't resonate with many of the targets.

One problem with Cloud is that it's too generic. It needs to be sold as a package aimed at a set vertical. For example, a premium Dental Office Bundle of DSL, 3G, mobile, credit card processing, data backup, EMR, dental practice management, invoicing system and payroll which ends up being a Dental Office in a Box.

That is easier to wrap your head around as both an Agent and a Customer.

Take Retail. Legacy New Edge Networks (now EarthLink Business) was very good at selling to Retail on its branding of PCI Compliance. The VAR or Agent can reduce churn and increase residuals if they sold a package of other services down that pipe. Attached to the NEN AX Platform are companies offering payroll, Hosted PBX and more. (I'm not sure how Agents make money on that, but it is a private connection via MPLS to the AX Platform.

What if payroll, Network DVR, a point-of-sale system, credit card processing, web conferencing, email, Blackberry service were added to the MPLS service along with 3G backup and cell phone service? The client gets one stop service for all its business application needs; the carrier gets a sticky customer with big ARPU (even though a percentage of it goes to partner companies); and the Agent or VAR gets paid on a bigger ARPU.

Plus now the Agent and VAR understand how Cloud and Apps and SaaS can affect a sale and a customer relationship. Something that has been disconnected before.

Next you have Unified Communications which has a similar disconnect for Agents and VAR's. Agents used to selling T1's and Ethernet and VAR's selling switches and servers don't have any of the UC components on their radar.

In this webinar with XO about the UC Sandbox, we talk about how UC is just a bunch of components to help any company communicate with employees, customers, prospects, partners and vendors. For UC sales to take off, the idea of the UC Sandbox has to get granular with very specific examples.

We will need case studies in print, podcast and video that are short but concrete about how a jewelry story benefited from UC and specifically what parts. Or how an auto dealership utilized UC to sell more cars or more efficiently scheduled repairs.

In the grand scheme, providers have to do a better job of being concrete with a value proposition and a specific case for both the indirect channel and the marketplace to embrace both Cloud and UC. All too often, I get pitched with a bunch of mumbo-jumbo that is either all about the company or a string of buzz words. Neither of those pitches explain what the benefit is; what the value play is; who would buy it; why would they buy; what pain does it solve. It is this failure to communicate these necessities that is causing a disconnect in sales.

Tele-Pacific Looking Wireless

2010-12-22T17:37:47Z

TelePacific Communications, the largest California-based CLEC providing integrated voice and data telecommunications services to the small and medium-sized business ("SMB") customer segment in California and Nevada, and MegaPath Inc., the leading provider of managed IP data, voice, and security services in North America, today announced a definitive agreement for TelePacific Communications to acquire MegaPath's NextWeb, Inc. subsidiary, dba Covad Wireless, a broadband fixed wireless carrier operating in California and Nevada.

Under the terms of the agreement, TelePacific Communications will gain approximately 3,500 profitable broadband fixed wireless business customers in California, Nevada and suburban Chicago through an all cash purchase of capital stock, per the press release. The footprint is complimentary so that helps.

This move just adds to the wireless moves that Tele-Pacific has made this quarter. Tele-Pacific Mobile has a wholesale contract with VZW to provide cellular voice and data services (3G) on one bill to its customers.

The NextWeb acquisition along with the 3G addition allows Tele-Pacific and its agents to offer a fully redundant circuit to its customer base. Wireline-Wireless bundles are becoming something of a necessity today as the business world becomes more mobile and moves depper into cloud application services.

EarthLink Business has a 3G data backup solution from New Edge Networks and a cellular voice option from Dealtacom.

MegaPath has a 3G data backup plan too.

As we move to an all-IP world, we are stepping away from a line powered five 9's reliability. The smart move for agents is to fill in the redundancy piece with 3G, Hosted PBX, fixed wireless, diverse fiber paths, and other modes of business continuity planning for disasters - minor and major. Data backup, network monitoring and security, even SmartUPS sales can add incremental income to your business, while allowing you to have a different conversation with your prospects and customers - albeit a higher level discussion.

Best Wishes for 2011!

8 Questions for Cloud Providers

2010-11-22T23:13:38Z

I've done a couple of webinars lately for VAR's and Agents about the Cloud. I think that between SAAS and Cloud, vendors are forgetting that they are selling applications.

I think the disconnect right now is that Agents aren't comfortable selling apps. They aren't comfortable with many of the SAAS Providers.

Here's the scenario: Agents sell telecom services for licensed companies, most of whom are public. And all agents have heard or know someone who was burned on commissions from companies they know. So now imagine we go into this nebulous thing called Cloud or SAAS, where some company says, "Hey, Go sell my Apps to your base!" The company is unknown, unlicensed and private. You have no idea what to look for; what to ask; what to expect; and in some cases how you are going to sell it.

At least the Conferencing companies (Conferencing is Software-as-a-Service and Voice-as-a-Service) like Intercall and RollCall have been around a long time. SalesForce too for that matter. But others? Not so much. Unknown entitiy.

So how do you choose a Cloud Provider to be a vendor?

Carefully.

Really the questions are the same for a Hosted UC company as it is for Cloud provider or SAAS company.

You want to know something about the financials. How many paying customers do they have? Can any be used as reference accounts?
Do they test their software regularly? Do they use an outside audit firm?
What does their redundancy look like? What does the data backup system look like? What does the Disaster Recovery scenario look like?
Are they using SAS 70 data centers or are they seeking or ISO 27001 certification?
How do they fix problems? If they say there are none, that's a red flag.
What does the SLA cover? What's the procedure for SLA's?
See if you can talk with any customers that require compliance such as HIPAA or PCI.
Use your best judgement.

Cloud Opportunities for Agents

2010-10-17T15:35:51Z

I was on a Cloud panel for Comdex Virtual for VAR's. (You can see that Nov. 16-17, 2010). And I am moderating Demystifying the Cloud for Agents at Microcorp One-on-One on Monday morning. Then I will be presenting Put Your Head in the Cloud: Opportunities for Agents with Khali Henderson for TCA on October 29th.

Where are the opportunities for agents in the Cloud?

Become a Net-Head and think beyond just the transit. Think about the overall way that the business uses the Internet, applications, and how important each of those are to revenue for the business. Security, disaster recovery, business continuity, data (storage, backup, archiving), redundancy, and productivity are what you need to be thinking -- not save money, cut costs, and let me see your bill.

There's more to it than a simple SIP Trunk.

Bundling for Stickiness

2010-10-12T15:01:34Z

I moderated the panel at ITEXPO about The Importance of Bundling for Stickiness with Cbeyond, Broadvox and Tele-Pacific. If a carrier has a bundle and it looks like every other bundle, it quickly becomes a commodity that is sold on price. Think Integrated T1 or Dynamic T1 or SIP Trunk.

New Edge Networks, an EarthLink company, has stretched beyond the MPLS over DSL model to include other access methods such as cable and EVDO. That lends some redundancy to the mix. NEN also can layer on voice and backup service - and soon with the AX platform other applications. It's a good small business bundle for agents.

When you bring more than access to the table, you create value. The stance has to be that you take a view from about 10,000 feet up. What is the business trying to do and how can I design a solution that allows them to do that reliably.

3 Ways VARs Can Profit From Cloud

2010-10-11T16:54:29Z

I was speaking to an IT shop owner this morning who will be attending SMB Nation in Vegas in a couple of weeks. His worry is How Do I Make Money From The Cloud?

Agents have a similar worry. One reason agents worry is because selling Managed Services in Consultative Selling is very different than selling a PRI or T1. Very Different!

It's transition time - time to take some sales training (Call RAD-INFO!)

For value-added resellers who sell IT services, the Cloud is still an opportunity. Here's 3 ways VAR's can profit from the Cloud:

One: partner with SAAS providers to get residual commissions from customers you bring to them. It isn't much money, but every stream of income counts. (I'd rather have 25 small streams of income than 1 big one).

Two: someone has to the integration and migration. Migrating databases to SAAS requires labor. IT shops can get paid for that. Integration with the SAAS provider and the client company employees is another space that needs to be filled. (VAR's could just re-bill the SAAS with a support or management fee).

Finally, the management piece. Remember, that not every application and certainly not all data will be moving to the cloud. Some of it will be a hybrid solution of private cloud and public cloud. You know what becomes important? Access, security and backup.

By Access, I mean ways to access the data in the cloud: Internet Access, MPLS or VPN. With Redundancy and reliability, too.

By security, I mean that private clouds coupled with lots of government regulations mean that security on the WAN as well as the LAN will be important - and likely too complicated for any in-house tech department. Access to the Access, if you will.

Lastly, data backup, email archiving and storage will be even more important as we move to the cloud. Someone has to manage that. It could be you.

In the Agent World, we have TEM and TAM. VAR's will need something similar.

TEM is telecom expense management (and sold as software-as-a-service, btw). Even circuits that I did not sell to the customer can be checked and inventoried on a TEM platform. Bill reconciliation is one piece of it, but also as offices open and close, employees leave and join, connections will need to be moved, changed, added or terminated. TEM helps to watch all that.

Close to that is TAM, telecom asset management. Laptops, EVDO cards, cellphones, data cards, routers, switches, IP phones - all these hardware assets that an employee or very small office may have - need inventory management. When the employee leaves, don't you want his hardware back? Don't you want to know how many data cards and data plans are in service? TAM.

VAR's could do something similar. In the security realm, companies would like to know that when they fire Al, he can be locked out of all data, systems and networks. That's your job!

Seth Godin says a Linchpin manages chaos, makes the complex simple. That's the Value.