COMMS VISION 10-12 NOVEMBER GLENEAGLES PREVIEW
www.commsvision.com BOXING CLEVER IN COMMS
Hailed as a new beginning in ISP solution provision, Griffin’s ‘ISP in a box’ still stands out as a forerunner to new modes of service delivery via the channel. And in 2008 Griffin lifted the lid on its ‘MPLS in a box’ product, also opening up new markets for resellers. Andrew Dickinson, Managing
Director, explains how Griffin
continues to box clever in comms.
Andrew Dickinson U
p until 2005 most resellers simply sold an ISP’s branded
broadband in return for a one-off commission. It soon became apparent that they were letting competitors into their customer bases and actually broadband could be a lucrative recurring revenue stream for them. “The issue was that nobody had come up with a simple way of ordering and managing broadband assets through a white label portal,” said Dickinson. “Then Griffin launched ‘ISP in a box’ and the market took off. By selling their own branded broadband services resellers were able to increase average revenue per user (ARPU) and build their own brand
therefore increasing the value of their companies and protecting their base from competitors.”
Five years on, the market for broadband is virtually saturated and most SMBs have either a broadband circuit or a leased line. “What started as a faster way to send email and browse the web has turned into a method of linking offices, managing backups and accessing remote applications and data,” added Dickinson. “Consequently, there is a move away from Internet facing products in favour of secure, private, broadband and leased line products.”
According to the Forrester report from August 2009, 49
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74 COMMS DEALER NOVEMBER 2010
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per cent of SMBs (around 300,000 enterprises) have, or are looking to buy an MPLS Wide Area Network (WAN) in the next two years. Driving this demand has been the need to connect remote workers, retail outlets and smaller sites to corporate networks as well as access remotely hosted data and applications. “Larger enterprises have traditionally bought MPLS networks directly from the carriers but these are too expensive and too inflexible for the broader SMB market,” noted Dickinson. “In 2008 Griffin launched its ‘MPLS in a box’ solution, offering a range of leased lines and broadband from all of the major carriers creating bespoke
private networks. Pre- sales support and network design are included in the deal, and because the intelligence is in the cloud the reseller does not need expensive, complicated routers and an army of on-site engineers.”
Every reseller has at least one high margin MPLS deal in their existing base and Griffin will even go as far as to help them find it, confirmed Dickinson. “As we are channel- only and white label we are trusted to go with our reseller partners to customer appointments to gather requirements and pitch solutions. Griffin wins 90 per cent of MPLS and virtual hosting deals that go through its award winning team.”
According to Gartner, by 2012 20 per cent of businesses will own 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 is predicted to be hosted desktop, and it is expected that in the UK 43 per cent of SMBs will be looking to rent software by the seat and by the month. “Everything else being equal, it is cheaper to rent software and store your data in the cloud than to buy software and run everything on your own servers in-house,” added Dickinson. “But of
course everything else is not equal... yet. Your Local Area Network (LAN) speed is probably at least 100Mbit/s, but how many SMEs can afford a 100Mbit/s leased line? How many times does your LAN break down compared to how many times your broadband or leased line fails? And consider this: How likely is it that a criminal will mount a sustained attack on your firewall to gain access just to your data housed on your own servers? The data of many hundreds or thousands of companies stored in the cloud is far more attractive, and so military grade cloud security is absolutely essential.”
Around the world large global companies are pushing managed services to businesses of all sizes, but the UK has a well established channel. “The small to medium sized business is often risk averse, and if you’ve provided customers with an excellent service with broadband in the past, upgraded their solutions, designed and implemented their private network, there’s every chance they’ll be receptive to any managed services that you offer,” said Dickinson. “By partnering with the right provider you can get the support you need to dramatically grow your business and become an MPLS and cloud reseller in five days.”
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Every reseller has at least one high margin MPLS deal in their existing base
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