MARKETWATCH
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Cloud-based solutions
INTERVIEW
Demand for Cloud Computing, SaaS (Software as a Service) and MPLS networking is on the rise, but how can resellers capitalise without having to invest in infrastructure and expertise? We asked John Dawson, Managing Director of Griffin Internet.
A
ccording to Gartner, by 2012 one fifth of businesses will have no IT assets, and the SaaS
market will show consistent growth through 2013 when worldwide revenue will balloon to around $16 billion. A large percentage of this growth is predicted to be hosted desktop, and it is expected that in the UK 43 per cent of SMBs will be looking to rent business software by the seat and by the month. “The current economic climate has caused many companies to have limited access to capital. These companies are looking for faster, more secure access to meet the demand for online services, driven by the uptake in acceptability of online services and social networking,” noted Dawson.
Many resellers already sell their own-branded broadband and therefore own the IP link into their customers. “They have already been upgrading customers to higher speeds and many have started to sell in MPLS voice and data networks which are typically on long-term, high margin contracts,” added Dawson. “When high speed connectivity is available enough, stable enough and cost effective enough, all critical business applications will run over it. Resellers that have close relationships with their customers are ideally placed to increase ARPU and recurring revenues by getting into hosted applications. By partnering with the right ISP, resellers will not need to invest in specialist equipment and staff to meet this demand.”
For companies to make the move from traditional IT to Cloud- based Computing they need to be assured that their data is secure and that their pay-by-the- seat software can be accessed securely on any computer they use. According to Dawson, the key things for resellers to look out for when selecting a connectivity partner are network statistics, uptime records and customer testimonials. “I would ask for clarification to ensure that data network offerings are truly private, so that information is not going over the public Internet at any time,” he advised.
Peace of mind when selling SaaS to valuable customers is paramount. Resellers need to know that their applications will be hosted securely. “Some ISPs offer military grade, award winning channel hosting products which provide flexible, reliable, secure and scalable solutions. Most importantly these need to be easy to sell, easy to support and affordable. Ask for case studies and referrals for similar types of organisations to give you confidence in the security available,” said Dawson.
He added that a data network provider can give access to products available from all the
John Dawson
carriers in the UK, ensuring resellers have the coverage that customers require. And he highlighted that channel aggregators have ordering systems and support staff on-hand to ensure that any connectivity from any provider is managed in one place. To ensure that resellers are making the highest margins possible and still providing competitive solutions, they need to work with a vendor that has their own end-to-end MPLS solution and hosting facilities.
“You may also need support from your suppliers to productise these new products, train your staff and help you win your first few orders,” added Dawson. “Resellers may benefit from opportunity identification training, help when creating complex connectivity
Resellers that have close relationships with their customers are ideally placed
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and Cloud Computing solutions, help with putting bids and network diagrams together and support during roll out. Branded on-site engineers can often provide peace of mind for the first installation. A system to manage order provisioning and technical support as well as branded first line technical support may also be of benefit.”
The head office and larger satellite sites will often require leased line connections into the network, generating more revenue and margin for the reseller. And according to Dawson, the up- sell doesn’t stop there. “The main phone system may need to be upgraded to accommodate remote access over IP, and on the client side they will need an IP handset or a soft client licence,” he said. “Many enterprises will install a second PSTN line into the home and with remote workers using the centralised phone system to route calls, the phone bills should increase.”
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