Convergence is Upon Us

Peter : On Rad's Radar?
| Peter Radizeski of RAD-INFO, Inc. talking telecom, Cloud, VoIP, CLEC, and The Channel.

Convergence is Upon Us

For years we talked about converging voice and data. Now that most voice traffic is VoIP riding on data networks (cellular, broadband, T1, MPLS, etc.), we can say Converged. But there is another convergence happening - the world of telco and IT. CompTIA, Cloud Services Community and other groups are working hard to get VARs to either become telecom agents or work with them.

As Josh Anderson describes here, VARs and MSPs are now competing directly with ILECs and CLECs for IT services to all businesses - from SMB to Enterprise, Government, Education and Healthcare. The worlds collided.

One thing for the VARs is that Agents are really selling IT services yet, so they have a little while longer to wrap their heads around selling network services. However, once agents get comfortable selling network with LAN management and other IT solutions, VARs will be in trouble. Why? For the most part, Agents are salespeople and VARs are tech people who really don't want to be selling. Who do you think wins the sale? The Agent.

Here's the other kicker: once IT services are up for grabs, it will become a whore's market.

The winner (if you can call them that) will be either the cheapest or the one paying the biggest commission. In 2008 we had a problem in Florida with RMM (remote monitoring) being sold by anyone who could install software on a PC, for any amount that they could get - just generate some income. It put some legitimate IT shops out of business.

Convergence is here. We are in the mud now.

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