MARKETWATCH
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EXIT MATTERS...
BROADBAND
update:
Heavy snowfalls in February
By Nigel Cook, CEO of Evolution Capital
highlighted the need for enterprises
Last month we hosted a networking lunch
to make sure their employees
at Coutts for key industry players whose
companies have revenues in the £2 million have everything they need to
to £30 million range. On the day, we could
continue working when they are
have been on the set of Scott of the Antarctic
but around a dozen of the industry’s most not in the office. Andrew Dickinson,
respected opinion formers defied the weather
Sale & Marketing Director Griffin
to give valuable insights on the recession’s
effects on their businesses and their strategies Internet, looks at the opportunities
for dealing with them. For my part, I think
this presents for resellers.
that the M&A outlook is strong. Multiples
are holding firm for profitable businesses, an
increasing number of shareholders are ready
T
he most recent CBI/Pertemps
Andrew Dickinson
to explore exit opportunities and banks still Employment survey shows that 95 per
have an appetite for robust propositions with cent of employers are now offering some to work on the corporate LAN and take
attractive deal structures. In challenging form of flexible working. Remote working is and make calls via the telephone system.
times, consolidation has a stronger appeal. showing the most dramatic increase - 46 per
cent of firms now let staff work remotely or In the current economic climate enterprises
Ian Fishwick of Adept Telecom stressed that from home, compared to just 11 per cent in are looking for a secure and cost-effective
early action is vital in today’s conditions. “If 2001. Until recently it has been mainly senior way of facilitating this, and an agile IP-VPN
you wait until the numbers tell you that you’re executives and middle managers that have fits the bill perfectly. Private broadband tails
in trouble, it’s too late. Banks will only fund worked from home and they have got by with can be installed for little more than the cost
businesses with demonstrable cash flows. their home broadband and a mobile phone. of a standard DSL circuit and staff can be
The prospect of future earnings isn’t enough, As remote working spreads to all parts of an connected directly to the corporate LAN
so many ‘new product’ companies, not yet enterprise, people need to be permanently without the need for complicated SSL/IPsec
visibly profitable, may well struggle this year.” and reliably connected to the office as if tunnels, expensive software clients or specialist
they are in the office. They need to be able routers. Additions, moves and changes can be
Alastair Mills of SpiriTel added: “A recession is managed by the reseller (or even the enterprise
not necessarily the best time to be investing themselves) on their own portal through which
in developing new technology. At SpiriTel they can also test lines, report faults and call
we’re focusing on cross-selling more products out BT engineers. No more emailing change
to existing customers. Cash mismanagement request forms into a telco black hole.
could sink a profitable business. You must
understand your cash and remember that it’s The head office and larger satellite sites of
also a shareholder concern. The market isn’t the enterprise will often require leased line
ready for new technology so it’s essential to connections into the MPLS cloud generating
focus on cross-selling to your existing base.” even more revenue and margin for the reseller.
And the up-sell doesn’t stop there. The main
Telinet’s Paul Cosgrave also had cash in telephone system may need to be upgraded
mind and stressed that cross selling was vital: to accommodate remote access over IP and
“Fragmented customer bases demand the on the client side they will need an IP handset
selling of other services. It’s vital that costs or a soft client licence. Many enterprises will
are managed effectively and you must install a second PSTN line into the home and of
always double check that you are doing so.” course now that all these remote workers are
using the centralised phone system to route
There was universal agreement – confirmed calls the enterprise’s ‘phone bill should increase.
in an extended telephone poll – that the
COMMS DEALER WEEKLY
recession is biting, new customers are harder
!WEEKLYROUND
UPOFNEWSAND
Some of the better channel-only ISPs offer a
to find and decision making is increasingly
ANALYSISFORCOMMSSOLUTIONPROVIDERS
full white-label sales and technical bid team
delayed. The best response is to concentrate
DELIVEREDTOYOURINBOXEVERY&RIDAY

service so all you have to do is qualify an
on your existing customer base and improve opportunity and they will do the rest for you.
your cash management.
�
www.comms-dealer.com
Potentially a pretty good return for a few hours
work trawling through your customer list.
�
UK Telco 100 club is the fastest Partners receive a 220% t: 0844 77 00 765
growing dealer program. growth bonus with no targets. e: info@uk-telco.co.uk
44 COMMS DEALER MARCH 2009 www.comms-dealer.com
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