UC: A HUGE Disruption to The Channel

Introduction

The channel has been faced with dramatic changes over the last 48 months. Today’s world is a bit more complex than that of yesterday. Take for example the traditional digital TDM PBX – it’s dead. It has been for four+ years. With so many millions of end points in production, it is difficult for many to see the end of digital telephony era. The traditional TDM switch used:

• A centralized "power" approach – all end points, other than standalone conference phones have been powered from the digital switch.
  
  
• Cabling – Cable lengths for digital stations could extend to 2,000-3,000 feet and analog stations could extend up to 6,000 and even 8,000 feet (depending on manufacturer and model)
  
  
• Separate Network – TDM voice was designed to run on a stand-alone, separately cabled network
  
  
• Reliability – Traditional TDM systems have run on a 99.999% reliability model. Users expected dial tone 24 x7 at the desktop. All that changed with VoIP

In addition, other changes have created disruptions to the VAR community and areas for profitability. Some of those include:

• Little MAC activity – VARs have seen revenues for Move and Change/MAC activity plummet by as much as 90%. IP end points no longer require a specialized technician to move a phone from point A to point B. Move and Change activity can now be moved to an in-house function by the enterprise.
  
  
• Skill sets – traditional TDM skill sets no longer have the value they once had. Today’s technicians require voice and data skill sets and understanding the world of data topology, QoS, IP addressing, DNS, network failover, BGP/HSRP, virtualization, and other data components
  
  
• Maintenance Agreements – VARs have seen revenues from VoIP and UC implementations drop by as much as 50% over their TDM revenue
  
  
• Nortel Chapter 11 – This announcement by Nortel alone in 2009/10 alone was a huge disruption to the VAR community. All VARs had to become Avaya-compliant over time, added other manufacturer representation, or even moved to a new manufacturer altogether.
  
  
• The Recent Economy – has an impact on all revenues “across the board” in all segments of the industry
  
  
• Carrier Resale – Those VARs who have been reselling carrier services have seen a drop in revenues based on drop in cost per minute, per mile, per Mb, even as the need for bandwidth increases considerably.
  
  
• Industry Consolidation – The above factors have forced Mergers and Acquisitions and consolidation in our industry.

Times have not been easy for the channel, for sure.

VoIP/UC Rules Are Different

The newer, VoIP-centric models rules are also quite different and have a created a huge disruption for the industry

• VoIP is a data technology and data rules apply – all voice transport carries the data network
  
  
• All voice transport now runs on the data network – data switches, data cabling, data switches, routers, etc.
  
  
• VoIP now can ride a separate data network or use a Virtual LAN/VLAN to run on the same data network
  
  
• VoIP uses 8 pin RJ45 data jacks as opposed to the 6 pin RJ11c jacks of old
  
  
• The 2000-3000 feet distances have been modified to 300 feet. CAT5e/6 cable for the local run is required for VoIP – no more CAT3 cable. Fiber is now required beyond the 300’ distance limitation, as with data.
  
  
• The IP end point is now powered by a PoE switch, power injector in the local closet (the are 3^rd party alternatives such as Phybridge that support data lengths and CAT3 cable up top 1500 feet)
  
  
• Local IDF closets now require a holistic look to support both voice and data end points. The PoE switch now requires additional, thus more BTUs and considerations for power, HVAC, and space have to be considered
  
  
• UPSs in the local closet now support the telephony end points, and consideration has to be given to the uptime necessary now in the local closets. It used to be 4 hours on the central TDM switch, now 4 hours can create huge issues for power, space, and HVAC considerations.

UC Channel Partners are Not Clear What to Do with UC as a Product/Service

VoIP and Unified Communications have introduced licensed-based models to replace traditional digital ports as well as virtualization to reduce the number of servers required for various applications. The basis for how to deploy and use UC are quite different from the traditional PBX and voice mail replacement.

UC is clearly here for the enterprise and the key issue with is this: Most channel partners are not clear what to do with it. Here’s why:

• Price point and associated margin is nominal compared with holistic VoIP replacement (in my experience UC sells for only 25-30% of the same VoIP/voice mail price per seat)
  
  
• UC is fundamentally different than VoIP. Enterprises know how to use a phone and voice mail, and training to use Unified Messaging is just about instantaneous. UC is quite different and will fundamentally change how an organization functions.
  
  
• UC requires specialized training and specialized channel resources to deliver effectively tools such as IM/chat, presence, ad-hoc audio conferencing, ad-hoc video conferencing, document sharing and collaboration. These are new tools for the enterprise and require a fundamental look at business process and the technology to effectively deliver on UC.
  
  
• Yes, consumers know how to use these UC tools. Commercial enterprises, however, need to take a really close look at how UC can impact the enterprise, including policies and procedures, impact of discoverability, work from anywhere ability and standards associated with such, and best use of these tools within their organization and industry.
  
  
• Just as channel partners have developed specialized skill sets for the Contact Center, so too must partners develop such skill sets to effectively deliver UC. It’s just not good enough for do the same for UC.

So as the Telecom and IT industry continues to move forward and integrate newer platforms, the channel needs to rethink how they are doing business. Here’s your key question: Are you selling just a new box replacement or a set of tools for the enterprise that can be business transforming for the enterprise? The difference in how you approach UC can be dramatic.

So think of UC as a new opportunity to “upgrade” your channel’s firm and create new value-add propositions, ones that will your firm to the next level.