COMMS VISION CONVENTION SPECIAL REPORT
Cloud ushers in transition as world of comms shifts
COMMS Vision 2011 entered day two with an agenda to explore the catalysts for business transformation, those important technologies and market drivers that are creating opportunities for the channel.
According to keynote speak- er Simon Howitt, Sales and Marketing Director at Platinum sponsor Outsourcery, the pro- cess of change and transition is as natural as the formation of clouds in the sky. And who can argue with nature? Howitt stated: “We live in a world of change, but it’s how we respond to change that is important. Successful people anticipate change, keep one step ahead and understand how change will impact on their business. The cloud has a key role to play in defining this new future.” A key driver for change is the day-to-day experience of the customer, believes Howitt, those granular issues at the apex of their to-do lists such as improving the sales, market- ing and operational functions within the organisation, meeting the demands of HR departments and the requirement to introduce flexible working practices. “Many organisations are searching for ways to improve
Simon Howitt
their performance,” commented Howitt. “This area gives us the breathing ground to catalyse change and help customers to do things differently.
“Businesses are focused on this area more than anything else, and it’s the channel’s role to be their trusted advisor.” Pivotal to Howitt’s percep- tion of the market is his notion of a Third Revolution supported by major influencing factors that are shaping the world to come. These include the growth
of ‘true’ UC, the avoidance of technological obsolescence, the advance of mobile and remote working, the consumerisation of IT, cost and productivity pres- sures, and capex versus opex. “Work is something you do, not somewhere you go,” added Howitt. “The world of work is changing and a significant cata- lyst is the rise of smartphones and tablets, pushing the bound- aries. And how they access information is at the heart of the mobile revolution.”
Featuring highly in this vision of a brave new world is the ability to collaborate at the click of a switch, but according to Howitt this vision is not an exercise in star gazing because the ability to do so is here. “In our world true collabo- ration is with Lync. We have bet our farm on Microsoft and developed Unified Lync with voice breakout. This is a chal- lenger to traditional IP PBX systems and a fundamental example of how businesses can change and become more efficient. Many businesses are exploring this opportunity, so ensure you engage with custom- ers in terms of this journey.” Howitt urged delegates not to think of the cloud as a concept, but rather position the benefits in terms of how this deployment mechanism can change the way businesses communicate and work. “It’s what you put in the cloud that’s important,” Howitt added. “Cloud enables you to excite the customer.”
Howitt concedes that the danger of being crushed by a stampeding cloud-rush is mini- mal, but he also noted that in time businesses will most cer- tainly migrate to the managed services model.
Investors embark on buying spree
THE telecommunications land- scape is undergoing a broad transformation as consolidation and technological advances provide a stimulus for growth, and according to Paul Russell, Partner at BDO, this trend has caught the eye of cash rich Private Equity (PE) investors. In a keynote address Russell explained to Comms Vision del- egates the inner dynamics of a steadily improving TMT M&A market. He cited figures from Reuters which indicate that since January 2010 the FTSE
techmark index has grown by over 18 per cent and the tele- coms index by nearly 19 per cent. This means that the chan- nel offers clear opportunities for value creation.
Russell also noted that the equity markets have recovered strongly, technology and tele- coms is doing well, but a bigger influence on the TMT M&A market is PE which has been particularly successful in this space during recent years. “Private Equity raised huge amounts during 2000-2006 in
a ten year fund,” commented Russell. “Most of this money is still sitting there. This backlog of funds is driving an appetite for deals as investment periods approach maturity.” Not surprisingly, 98 per cent of private equity investors see now as a good time to invest. Russell added: “Our pre- dictions for the rest of 2011 and 2012 are continued interest from private equity; a scramble for assets as ‘platform busi- nesses’ strive to make bolt-on acquisitions; more creative deal
structuring from corporate buy- ers in response to private equity pressure; highly structured, well planned processes; improved banking terms, and maybe the return of the debt underwrite and the syndicate.”
Russell also predicts reason- able, but not crazy pricing, in the mid market, along with con- tinued forensic levels of dili- gence and prolonged processes. “Our advice is to plan well, plan hard and prepare for the long haul whether buying or selling,” added Russell.
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Experience now crucial for success
RESELLERS should make a sparkling customer experience their trademark according to Colin Annette, Client Director at BT Wholesale, who says the relationship between end user and trusted adviser is more par- amount than ever before. In a Comms Vision 2011 panel debate Annette observed: “The customer experience has nothing to do with technology, it’s about reliability, trust and personalising the service.” However, delivering the per- fect customer experience is a challenge, noted David Hughes, joint Managing Director of Incom Telecom, who prefers to be at the leading edge rather than the bleeding edge when it comes to broadening his prod- uct folio with new technologies and services.
He performs a balancing act between keeping ahead of the game and maintaining positive relationships with customers, a policy that involves an element of sticking to his knitting rather than taking risks with new ven- tures. “We don’t jump in with both feet,” he said. Gamma’s CEO Bob Falconer pointed out that applications always run ahead of the infra- structure. However, he hailed the channel as a conduit for the provision of real value add. “The channel partner person- alises the service, is a trusted advisor and can improve the customer experience,” he said. Optimising the customer experience while adapting to a new environment is a key chal- lenge and a cautious approach is often the way forward. Drilling down to core skill sets and spe- cialising in known markets is a trend Falconer has observed firsthand. “I’m seeing more ver- tical specialisation,” he stated. “Those selling a commodity sale nationally find it difficult. I’m seeing some resellers pick a vertical niche, add some twists and turns, and they are doing very well.”
22 COMMS DEALER DECEMBER 2011
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