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

EMV and Retail – Your Trusted Advisor Should Be Advising You about This

EMV and Retail – Your Trusted Advisor Should Be Advising You about This

EMVChipCardThere is ‘big change a comin’ for retailers, merchants and any business that accepts credit cards for payments, and there are a great many businesses that are completely unprepared for it.  The change, what is being referred to as the “Payment Networks’ Liability Shift”, goes in to effect in October 2015 and places the burden of liability for fraud squarely on the shoulders of the merchants and card issuers who are not compliant with certain payment system security standards.  Accounting professionals and Trusted Advisors – here’s one of those things you should be helping your clients with.  Help them get informed, trained, and prepared.  Help them to understand the risk and decide on a course of action.  This is part of what makes a trusted advisor: they got your back.

The way things generally work in the US today, a fraudulent charge on a credit card is likely to end up being covered by the credit card company (the issuer). Starting in October, retailers are supposed to be able to accept payment cards with EMV chips (named for the founders of the standard: Europay, MasterCard and Visa), and must process those cards using the compliant technology that takes advantage of what the chip processing and security offers.  If these conditions aren’t met – like having a POS or payment terminal not capable of reading the EMV chip – the merchant is on the hook for the fraudulent transaction.  Given the volume of credit card and payments fraud in the country you’d think that most merchants would already be ready for this, but replacing all the POS and terminal equipment could be pretty costly.  It may take a bit of analysis to understand the real risk and compare that to the cost of compliance.  Certainly it makes sense to always be in compliance, but there are always factors which influence how quickly (or how completely) compliance may be met.

The liability shift is part of the influence being leveraged to get businesses to adopt newer and more secure models of electronic payment acceptance and processing.  It is simply the case that the magnetic strip on a credit card isn’t good enough any longer.  The new EMV Chip reading payment terminals require that the card be inserted and processed by the terminal rather than simply swiping the magstrip across a reader.  Over 40 years of using the magstrip approach has helped to earn the United States a top spot on the leaderboard for credit card and financial fraud, and we seem to be lagging behind in adoption and implementation of the EMV technology even though it has been shown to seriously curtail fraud even as payment card usage increases.  The EMV chip process, which encrypts information about the card so that even the local POS system doesn’t get access to it, is far more secure and is being widely adopted and used in Europe, Canada, Latin America and the Asia/Pacific regions.  Now the clock is ticking for US businesses to get ready to either update their systems or accept the liability for not doing so.

The shift in how payment cards are made and processed is simply one of many changes which will continue to occur as technology and human ingenuity continue to be applied in both good and not-so-good ways.  Recognizing that the pace of change is increasing, businesses must find ways to remain informed and prepare for those changes which will impact the business operation and sustainability.  This is among the essential roles the trusted advisor plays, and the current imperative simply underscores the growing need for such advisors by business large and small.

jmbunnyfeetMake Sense?

J