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

Channel Partners: Selling Telephony With a Side of Remote Access and Cloud Hosted Applications

Channel agents and telephony resellers are facing stiff competition these days. Line access or voice service isn’t as easy to sell as it once was, and the convergence of digital voice and data has made things even less simple. Business customers demand comprehensive solutions that can address a variety of business problems, and they tend to seek out those solutions from the advisors they trust. The “advisor” could be a software reseller, an accounting professional, the local IT guy, or the professional that delivered great telco, voice or network access.

Convergence isn’t only for voice and data solutions; convergence is the combining and compressing of channels delivering those solutions. MSPs and “pure” IT resellers are also feeling the squeeze, finding telecom agents and channels among those challenging the VARs and MSPs operating today. Marketing budgets are increasing, but differentiation is not.  Reselling is a crowded space and everyone has become a service provider. Having the right messages to win new customers and retain existing ones is essential not just for success, but for survival.

Once a channel partner or provider has established a solid customer relationship, it is important to capitalize on that goodwill (and develop even more) by delivering the other value-added services the customer needs. Access, connectivity and voice solutions are just a start when it comes to servicing small and growing business customers. Having come from an application hosting background, I am very aware of the demand for mobility and “always-on, always-available” computing services among businesses small and large. When the partner is working with the customer and is solving connectivity and telephony problems, the likelihood of successfully selling additional IT solutions to address mobility is quite high. The challenge has often been with the investment required for training and certification; development of new competencies which are viewed as diversions from the core business. Evolution of technology, markets and demand suggests that offering a broader base of solutions isn’t a diversion any longer, it has become a core requirement.

Secure remote access to on-premises systems, managed hosting on cloud servers delivering always-on service or disaster recovery, and collaboration tools that keep everyone on the same page – these are the solutions that savvy businesses are looking for, and which represent the additional value channel partners and service providers could be delivering to their valued customers. After all, if the customer can’t get what they need from their trusted reseller/advisor, they will find somewhere else to buy, removing their “advisor” from the mix. Most business owners would agree that it takes less to nurture and maintain existing customers than it takes to find new ones, so the investment in offering and delivering value-added solutions is well worth it.

The best way for channel partners to retain their customer relationships is to offer a full range of solutions and value-added services to meet the variety of needs of their business clientele.  MyQuickCloud, for example, is a highly successful partner solution and add-on for resellers of IP telephony services and line access. MyQuickCloud offers very flexible and affordable secure remote access and cloud hosting solutions that do not require investments in training or certification to resell, giving channel partners and telecomm agents the right stuff to beat out the competition and keep small business and growing enterprise customers happy and coming back for more. Partners leverage their expertise and creativity in developing solutions with MyQuickCloud, resulting in cost-effective and powerful network, application and continuity services not previously available.

MyQuickCloud secure remote access creates a secure business cloud from on-premises systems, with hosted or co-located cloud servers, or any combination of on-prem or offsite hosts. The on-premises capability leverages investments in existing infrastructure and adds value and capability to locally installed systems, a benefit which is not available with traditional hosting models. Able to be positioned as simple remote access, managed hosting or complete disaster recovery, MyQuickCloud gives channel partners a simple yet comprehensive approach to meeting customer computing needs regardless of the applications in use or mobile devices to support. MyQuickCloud is also used by installers and support technicians, enabling remote access to client on-prem systems, turning service and support into a more streamlined and efficient effort and improving customer service and retention.

I wrote an article a while back about how it all comes down to 3 applications for small businesses… applications to address fundamental business requirements. Among those requirements is the need to communicate.  Whether it be via voice or electronic mail or other means, every business communicates and every business needs communication tools.  Chief among the communication tools is the voice service (telephone), whether it be on-premises or hosted, digital voice or IP (not much analog out there anymore) or some combination of all of the above. Extending telephone systems to service a remote and mobile workforce or to connect multiple business locations is a high demand business and has proven to be very lucrative for many partners.  Adding value to these solutions by delivering remote access or hosting service simply increases the overall value of the system and allows business customers to take full advantage of mobile, connected and integrated working models.

Make Sense?

J

 

Confusing Value Propositions: Cloud Platforms and Hosted Applications

it-balancing-actConfusing Value Propositions: Cloud Platforms and  Hosted Applications

When a service provider is in the business of selling computing resources – like bandwidth, processors and memory, and disk storage – it makes a lot of sense to also leverage the value of software products and systems which drive consumption of computing resources.  In short, they market and sell software that runs on the platform in order to get folks to buy the platform, no different from selling desktop and server software in order to sell the hardware to run it.  It’s just that these days the hardware and networking components are often referred to as the “platform” or maybe “the cloud”.

Let’s face it… cloud computing platforms are just no fun if there’s nothing to run on them, and a hard drive has little value when there isn’t anything stored on it.  Once there is something there – an application, data… something – then the part has actual value in terms of driving revenue.  This is the difficulty and the basis for confusing value propositions when it comes to offering and delivering services in the form of a hosting platform.  Once again: platforms are just no fun if there’s nothing to run on them.  Is the value is really about the applications, not the platform? Or is the value in the platform, because it’s necessary for running the applications?

The truth is that both are essential parts of the entire “solution”, and the value of how the solution is packaged and offered is purely up to the purchaser to determine in terms of applicability to the business.  When it comes to hosted application offerings for businesses, there isn’t a single one-size-fits-all approach that will work.  Sometimes people want to purchase from different vendors and put their own solutions together, and sometimes folks want turnkey delivery of whatever they need.  Even channel partners and value-added resellers are finding that, with diminishing margins and aggressive competition prevalent in the market, removing the time-consuming aspects of solution delivery becomes paramount to achieving some level of profitability on the work.

What this means is that providers are looking for ways to increase the overall value and usability of their solutions, and when it comes to platform services there are only two directions to look: automation to support self-service, and application software delivery to drive consumption and usage on the hosting platform.

So now we’re back to the applications again.  There’s no way to avoid them, but there’s no great way for platform companies to engage with them, either.  Working with business application software is sometimes complicated, often annoying, and can be exceptionally time-consuming and resource intensive. And there are few licensing models which make it really easy for hosts and ISVs (Independent Software Vendors) to work together.  Then, of course, there is the desire for exclusivity on one side or the other.

Software companies don’t generally want to select a single platform provider for their software for a very simple reason: they don’t want to limit their potential user base.  Now that Windows platform is available just about anywhere – on local computers, on mobile devices, from platform and infrastructure hosting providers – how does the ISV make a decision on a single delivery channel or model or provider?

Some lean towards working with hosting providers to create branded, point-deliveries of the application.  Too often, however, this approach removes the ability for customers to benefit from other applications or integrations, eliminating some of the value of the solution and certainly curtailing benefits for integrating partners of the ISV.

Host it themselves?  The last thing most software developers want is to be responsible for hosting and maintaining some other guys’ software products; they have enough to worry about with their own offerings.  If the solution is standalone, maybe this approach works.  But there are few solutions made for the desktop which don’t have some strange integration point with MS Office apps, Adobe reader, Internet browsers or other things prevalent on the user desktop.

There isn’t any proven or easy path for software developers, IT suppliers or small business customers looking to create mobility and managed subscription service around desktop and server applications, and there is likely never going to be a single story line that all will follow.  This is among the reasons for the popularity of the “hybrid” cloud approach and growing importance of managed application hosting and ISV-authorized delivery models.  Yet even key providers in those areas have a tough time really communicating what they do in a way that is meaningful to the buyer.  Are they selling a platform, applications, or both? Folks in the industry know the jargon and how to use it, and are often skilled at adjusting their language in order to obfuscate or confuse certain sticky issues regarding software licensing in the cloud and other similar aspects of hosting.  It’s no wonder that many customers remain confused as to what, exactly, they’re being asked to buy, and where the lines of flexibility and responsibility are drawn.

The applications justify the platform, and there are possibly multiple platform approaches to delivering the app. It is a confusing situation for business buyers of IT as well as for their resellers and suppliers, and the increasing number of options for how businesses approach purchasing and using information technology makes it unlikely that the process will become as simple as some suggest.

jmbunnyfeetMake Sense?

J

Turning a Product or Service into a Solution: the Value Add of a Reseller

Turning a Product or Service into a Solution: the Value Add of a Reseller

There is quite a bit of chatter on the web and among IT resellers about how opportunities to serve business customers are diminishing, yet business adoption of cloud computing, managed services, and mobile technologies is growing tremendously.  It seems that use of technology is increasing, but the opportunity for “traditional” IT resellers and channel partners to make money by selling IT-related products and services is diminishing.  This is not new, and is simply a finer form of the problem that has been revealing itself for years.  In order to provide value, suppliers must provide businesses with solutions to business problems rather than just trying to sell them products and services with a hefty profit margin.

Whether it is a physical item like a computer or an intangible item like consulting services, businesses will buy if they see value in it.  In the eyes of the consumer, the value is likely tied to far more than the item at hand; the value tracks to some expectation of business benefit to be achieved now and in the future.  Businesses will pay for solutions to problems they experience more readily than they will pay for shiny things or big ideas, and it is this truth that many “value added” resellers tend to forget even though it is part of their business description.

For many years channel resellers have struggled with competitive elements that reduce revenue and profit potential on core products and services.  When computer hardware prices dropped years ago and businesses found that going through distribution or direct to the manufacturer was often a more affordable path than buying through a reseller, the resellers re-trenched and began providing more value in terms of solution architecture, training and implementation support, and system management services.  As the delivery chain for information technology continues to compress and more products and services are delivered direct-to-consumer, the pressure for resellers to discover their “value add” grows even more severe.

The days of simply reselling technology products to make a living are quickly coming to an end. There isn’t enough profit margin available to eek out a living just selling hardware and software, and it takes a large volume of subscribing customers to reach any significant revenue level by reselling commoditized cloud services. Yet the customers are there to be won if the offerings represent solutions to defined and recognized business problems – solutions that introduce quantifiable business benefit rather than creating more business problems – and where the reseller plays an integral part in making the selection a successful one for the customer.

While it may seem that business cloud computing, hosting services and SaaS solutions all come with easy-to-read instructions, do-it-yourself installation and painless upkeep, the truth is often very different. Some consumers realize this when they go shopping for solutions and come up with more questions than answers; some only figure it out after they have made the wrong decision. Either way, these businesses could use the help of a professional who will provide the added value of taking time to understand the problem to be solved, consider the variables which exist in the client organization, and clear a path which takes the customer business to a better place.

Cloud computing and SaaS may be changing HOW businesses purchase and use technology, but it is not changing WHY they do it.  Businesses buy IT because they think it will solve a problem – they have expectations. The reseller can find and provide the added value: the reasoning (meeting expectation) for selecting the solution, why it is the right choice for the customer organization, and how they will ensure that the solution delivers the benefits described and expected.

Joanie Mann Bunny FeetMake Sense?

J

Read  more about Helping a Small Business Customer Choose Your Solution

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