MARKET REVIEW Big opportunities stack u
The lower end of the PBX market is structured around a specific set of requirements. Here, we examine the buying trends, market drivers and product developments designed to address the diversifying needs of this segment.
T
he economic climate has presented a number of challenges to resellers operating in the small business market. Rising taxes and reports of businesses reassessing staff resources means that resellers need to provide intelligent, tailored approaches to selling PBX and communications platforms, says Daniel Fuller-Smith, Sales Manager at Toshiba Business Communications Division. “Value for money isn’t just a customer concern, making sure there is a good profit margin is ever more important for resellers too,” said Fuller-Smith. “There has to be a balance between
selling a product that is right for the customer but also right for the reseller, providing value for money and RoI for both.”
IP telephony, points out Fuller-Smith, is particularly relevant to this discussion. Although the popularity of IP is growing there is often no instant value in IP for small businesses. “Many businesses are either unable to commit to an IP solution because their networks are old or because they are not optimised for voice traffic,” he noted. “Selling hybrid solutions can mean that the reseller doesn’t have to invest as much time in the sales process and therefore can maximise their profit. Providing non-IP solutions can also reduce installation and maintenance costs as well as reducing the risk of technical issues appearing later.”
Daniel Fuller-Smith
Making sure there is a good profit margin is ever more important for resellers
There has been some concern about a customers’ ability to commit to purchasing new systems, however the resellers that are doing well at the moment are the ones who focus on the right messages and position pricing effectively, observes Fuller-Smith. “Emphasising the return on investment is key, so breaking down costs with leasing solutions,
rather than presenting total figure sums can make new investments seem more accessible,” he said.
The 1-10 extension market is extremely price competitive and there are a full range of solutions in this space. However, this availability doesn’t necessarily mean that businesses can upgrade their phone systems themselves, so there is still a significant amount of business to be had by resellers. To compete in this space, snom’s soft PBX solution is free and provides a commercial telephone platform which has no cost to the end user. Resellers can gain revenue through selling the hardware.
Risk takers
“Small businesses are more willing to take risks than larger companies so they are diversifying into IP and adopting new technologies,” said Jonathan Greenwood, snom UK Managing Director. “This trend presents masses of market opportunity to resellers. The value for a reseller in the below 10 extension market segment resides in support for the end user. Small businesses don’t often have IT departments so a dealer can achieve added value through offering them a complete package that
2011
Marriot St. Pierre, Chepstow,Gwent. 16th June 2011
38 COMMS DEALER MARCH 2011 Jonathan Greenwood
The value resides in end user support
includes installation and an ongoing IT support service.”
The key demands in this segment are low initial investment and even lower running costs for a sophisticated telephone solution. “Users want the professional features at a small business price,” according to the observations of Mark Shane, Sales Manager at ICON. “Examples of such businesses are healthcare surgeries and companies in the financial sector. These businesses typically need a solution with call centre capability, home working, call recording and UC productivity features.”
In the 1-10 extension niche ICON distributes the TalkSwitch small business telephone solution and the Wave IP solution. “In this market there is more
willingness to use VoIP,” added Shane. “It seems that the small business with less legacy or no legacy solutions are prepared to invest in more cutting edge technology quicker than mid-range sized business.”
He also noted an increasing requirement among small companies for remote working and on-site mobility, which ICON achieves by integrating solutions such as Wave with the small business VoIP mobility products from Polycom, typically the KWS300 DECT solution.
For micro businesses and start-ups the key factor is always price and value for money, agrees Mike Ballantine, Business Development Manager, Aastra Telecom (UK). Aastra has two offerings for this market space. The Aastra
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