MSP, IT, Telecom, Channel: Convergence and the Cloud

Small and growing businesses have always relied upon various service providers and vendors to deliver the solutions required which support the business operation. Often viewed as the critical infrastructure of the business, phone and computer systems are among the first acquisitions a new business makes.  Phones and voice service, wired and wireless networks and all forms of communications infrastructure are part of IT and represent a large portion of the business information systems.

Small businesses used to have a phone guy they could call for phone stuff. The phone guy was a person or company who got phone lines installed, ran cabling for phones, installed phone systems and set up voicemail. The phone guy could help get cheaper long distance calling rates and train users on how to use the paging system and transfer calls.  The phone guy interacted mostly with the office manager or receptionist – the person in the office most likely to be “in charge” of the phone system, influencing these purchasing decisions greatly.

The computer guy, on the other hand, made sure the workstations and server were working, defragged hard drives, installed software and set up printers. The computer guy was the person or company that sold and supported the IT in the business, and often consulted with the business owner or line manager when it came to addressing information system requirements.

Telephony and networking is now clearly in the realm of IT, which changes how services are selected and purchasing is influenced. Computing and communications infrastructure, networking and mobile is all part of business IT. The separation of services – voice versus data – is gone.  The phone vendors and the IT suppliers are now the same company, providing the critical infrastructure, the platforms and the application services that businesses are buying. These service providers understand that the foundations for delivering voice and data services are the same; the skills of their techs and the tools they use have converged to the point where there is little separation of duties.

Cloud services and outsourced solution providers offering hosted PBX and virtual applications infrastructure have revealed to business owners that there is often little difference in what the phone guy and the computer guy can provide. Business owners want converged solutions: voice and data when and where they need it to support business operations. Just a little research reveals that these anytime/anywhere models are widely available and that the cloud is the key.

IT services are critical to the business, but the server doesn’t have to be under the front desk or in a back closet in order to function.  There is simply too much evidence in the market for these business owners to ignore;  shooting the server is now a viable option.

Every day more business owners are being inspired to [shoot their servers] seek out the services that will allow them to continue to benefit from innovations in technology while relieving them of the direct responsibilities of equipment purchasing, implementation, administration and lifecycle management.

Cloud services deliver this capability, and channel partners and Value Added Resellers should recognize their opportunity to get inspired as well, and to start offering cloud-based and hosted services to their customers and capture the “buying decision” opportunity that has [been] created.

Ready. Aim. Fire.

Source: Go Ahead and Shoot the Server: End of Microsoft Small Business Server Inspires Cloud Adoption with Small Businesses « Cooper Mann Consulting

Recognition of the convergence of voice and data services and channels hasn’t really hit home for a lot of resellers and channel partners, and this has rightfully positioned providers on both sides of the equation as viewing the others as direct competitors.  The phone guy thinks he is his customer’s “trusted advisor”, and that the loyal customer will certainly come to him if there is ever a need.  As well does the computer guy believe that he is the trusted advisor, having the ear of the business owner and wielding enough influence to ensure a continued revenue-earning relationship.

In truth, both the phone guy and the computer guy probably have earned their business customer’s trust and were the go-to people when there was a new business need. The problem is that the customer may no longer call one or the other of their “go-to” guys because the forward-thinking guys are offering one-stop service that delivers everything the business needs.  The lines between phone and computer stuff are not so clearly drawn any longer; it is all cloud IT and full service providers are winning the customer business.

Channel resellers, agents and MSPs are all telling their SMB/SME customers the same things, and at a base level they’re selling the same things, too.  Everyone is talking about lower up front investments and improved business productivity… and what they’re all selling is cloud and virtual. “Businesses need cloud in order to compete; move CapX to OpX; mobile is the new office” and “remote workers and devices need a secure quality network”.

Whether it relates to telephone systems with voicemail, automated attendants and a little intelligent voice response thrown in, or if the deal is for servers and workstations, software and network cabling, it is all business information technology and the trusted advisor is the guy who can provide it all. Convergence has clearly arrived.

Make Sense?

J

My Love/Hate Relationship with Partner Programs

My Love/Hate Relationship with Partner Programs

originally published on LinkedIn
 

I love Partner programs. You know, those business opportunities to get involved with a product or solution and earn revenue selling it to your customers. Particularly when the opportunity is attached to something you already do for a living, a partner program can represent a way to gain new competencies, new customers, and new revenue streams. Then again, I hate partner programs just a little bit, too.

When a business becomes a business partner, there’s an expectation that something will occur that benefits both participants (hence the word “partner”). Each side is supposed to benefit in some manner from the relationship. In the case of the partner program, the expectation is that the partner will sell the product or service to customers and gets compensation on sold deals in return. There may be marketing, lead generation, reseller pricing, training and other elements involved, but the relationship is generally one of “you sell my stuff and I’ll comp you for it”. The manufacturer gets more sales, and the partner gets products that customers buy, meaning revenue for the partner and the manufacturer. Sounds like a good deal.

Here’s why I hate partner programs at times: they tend to shift the focus from what a customer needs to what the partner can earn revenue on selling. For a product or solution-based business, this may not be a bad thing, as the business is in the business of selling product. For a consulting business, however, it can be quite problematic if the consulting team isn’t clearly focused on meeting the customer need rather than pushing product.

There’s an old saying that “if all you have is a hammer, then every problem looks like a nail”. Some consulting firms inadvertently fall into this situation, where they have their favored solutions (perhaps solutions they earn revenue from selling), and they automatically try to apply that solution to each and every customer engagement, whether it makes sense or not.

This happens time and again and not just with consultants, but also with accounting and bookkeeping professionals. Having developed an understanding for, and processes and procedures for working with, a particular business accounting product, the firm tends to make that product a standard recommendation for all clients. In this case the firm may not be literally reselling the solution for revenue, but has certainly “partnered” with the solution in the context that their ability to earn revenue becomes directly tied to the solution they want their client to purchase.

Partner programs can be hugely valuable to both the manufacturer and to the partner channel, and the value of having skilled “feet in the street” supporting and promoting the solution has been proven many times over. But accounting professionals and business consultants should take care when considering their possible participation in these types of programs, and be realistic about how that relationship fits in to the nature and quality of the service delivered to customers. The program may fit well with the needs of the practice, driving new revenue opportunities in new or existing areas of business. On the other hand, it may end up being a distraction, turning the focus from providing great client service and satisfaction to selling a product or solution just to earn an additional buck on the deal.

jmbunnyfeetMake Sense?

J

Accounting, Technology and Small Business – The Best of 2013 from CooperMann

Accounting, Technology and Small Business – The Best of 2013 from CooperMann

cooper-mann-top-20It has been an eventful year, hasn’t it?  With the NSA lurking about collecting data, innovative new approaches to information and identity theft emerging almost daily, and complete turmoil in the IT services industry challenging trusted sales and distribution models, most of us have simply become numb to the noise.  Information technology is evolving at an increasingly rapid pace and the way people and businesses interact with and use technology is being forced to change along with it.  It’s starting to become almost, weirdly, natural.

Much of this change can be attributed to “The Cloud”, which is not a thing or a place.  Cloud has become the term which applies to just about anything having anything to do with the Internet.  For technology “purists”, cloud means something fairly specific, but for normal people (no offense to the nerds and geeks, but you know what I mean), cloud applies to pretty much anything accessible via the Internet.  Photos back up to “the cloud”; music gets stored in “the cloud”, websites are hosted in “the cloud”; businesses run their applications in “the cloud”, and you can do darned near anything you need (or want) to with a phone.  The cloud could be some guy’s server in his basement, or it could be a sophisticated network of systems housed in secure facilities around the globe.  They both qualify, sort of.  The point is that mobility, Internet services, subscription access to technology, and social computing are changing how people view technology – resulting with changes not simply in how IT is purchased, but in how IT is used and applied to daily life.

There are, however, some things that do not change even if the working environment does.  The accounting profession, for example, is undergoing a great deal of change, and much of it fueled by the advancements in technology and social computing.  But accounting fundamentals – the “truth of debits and credits” and the good old accounting equation – remain.  The basics of running a business are also unchanged, even as methods of doing business evolve and globalization of markets continues.  Business fundamentals – fiscal responsibility, cash and growth management, and focus on value and sustainability – are as necessary now as every before.

With all this change and IT “advancement”, there have certainly been impacts to how and where we work.  But the more things change, the more they remain the same.  Good business generates goodwill and more business – that doesn’t change – and bad news still tends to spread faster than good news (much faster, given social platforms that are designed to spread the word far and wide).  And when it comes down to the fundamentals – the basic and essential foundations supporting building, operating, and accounting for business – we generally find that they remain constant even as the environment in which they exist experiences change.

jmbunnyfeetMake Sense?

J

Here are the top 20 ranked posts for 2013 from CooperMann.com

  1. The 2 Most Popular Models for Working with QuickBooks Desktop Editions and the Cloud
  2. Accounting Professionals, You’re right – your clients don’t care about the numbers.
  3. Remote access to client bookkeeping comes in many forms because clients come in many forms
  4. What Small Businesses Need To Know about QuickBooks and the Cloud
  5. Intuit Introduces Changes to Authorized Commercial Host for QuickBooks Program, Introduces QuickBooks Enterprise Rental Licensing
  6. Managed Applications, Cloudpaging, and a New Flavor of Hosted QuickBooks
  7. The Language of Accounting: Disconnect between Accountants and Bookkeepers
  8. Why Accountants and Bookkeepers Use the Cloud
  9. Small Business Owner to Accountant: Make Accounting Valuable to ME
  10. Changing How We See Software: QuickBooks 2013 interface frustrates power users
  11. Bookkeeping and Benchmarks – Getting the Numbers Right
  12. In Bookkeeping, Accounting, and Information Technology: The Value of Outsourcing
  13. Hosting All My Applications in the Cloud
  14. 4 Rules of Thumb for Business Success
  15. Intuit Hosting Program for QuickBooks Website Goes Live
  16. Re-defining the role of the accountant, or going back to the good old days?
  17. Cloud Computing for Small Business: It’s All About 3 Apps
  18. The Collaborative Online Model for Small Business Accounting Professionals
  19. QuickBooks Hosting: New Program Tier Announced for QuickBooks Hosting Providers
  20. 4 Rules for Building Service Customer Loyalty
Posts by category – with Accounting Professionals, QuickBooks Hosting, QuickBooks Software, and Small Business being the top categories with ranking articles.
ACCOUNTING PROFESSIONALS
Small Business Owner to Accountant: Make Accounting Valuable to ME
Accounting Professionals, You’re right – your clients don’t care about the numbers.
The Language of Accounting: Disconnect between Accountants and Bookkeepers
Why Accountants and Bookkeepers Use the Cloud
Bookkeeping and Benchmarks – Getting the Numbers Right
In Bookkeeping, Accounting, and Information Technology: The Value of Outsourcing
Re-defining the role of the accountant, or going back to the good old days?
The Collaborative Online Model for Small Business Accounting Professionals
Remote access to client bookkeeping comes in many forms because clients come in many forms
QUICKBOOKS AND BUSINESS APPLICATION HOSTING
The 2 Most Popular Models for Working with QuickBooks Desktop Editions and the Cloud
What Small Businesses Need To Know about QuickBooks and the Cloud
Intuit Introduces Changes to Authorized Commercial Host for QuickBooks Program, Introduces QuickBooks Enterprise Rental Licensing
Hosting All My Applications in the Cloud
Intuit Hosting Program for QuickBooks Website Goes Live
Cloud Computing for Small Business: It’s All About 3 Apps
QuickBooks Hosting: New Program Tier Announced for QuickBooks Hosting Providers
Managed Applications, Cloudpaging, and a New Flavor of Hosted QuickBooks
QUICKBOOKS SOFTWARE
Changing How We See Software: QuickBooks 2013 interface frustrates power users
SMALL BUSINESS
4 Rules of Thumb for Business Success
4 Rules for Building Service Customer Loyalty