Peter Radizeski is Founder and President of RAD-INFO INC. He is an accomplished blogalyst, speaker, author and consultant. He has helped many service providers with sales training, marketing, channel development and business strategy. He is a trusted source of knowledge about the telecom sector. His honest and direct approach make him a refreshing speaker.

Look for his innovative ideas and analysis of current technology on his blogs.

Meet him at one of the many conferences he attends and speaks at.

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The New TEM for Partners

Cloud Farming has to be the new TEM (telecom expense management). Years ago, auditing was how you got your foot in the door to an enterprise. It turned out to be more work than most wanted or realized. And many enterprises were under long term contracts. It wasn’t profitable. Many auditing firms pulled up their tents. Now some CPAs are in that game, like CliftonLarsonAllen.

Now we have a bunch of hype around Cloud Farming and cloud assessments. That sounds great, but buyer beware! Unless you have a Cloud Architect or Network Architect on staff to review these plans, are you sure you have the clients best interest at heart?

In cloud, the hard part is the MIGRATION. In data center world, a colocation migration for a Fortune 5000 firm is a two year plan. Two years to move a data center cage! The circuits, the boxes, the IP addresses, the mapping, the design, the physical move, the duplication, yadda, yadda.

I sat in meetings on software migration projects in the early 2000s that took over a year to plan. Yes, a year to plan before starting the migration, which took two-plus years.

‘Verizon Communications Inc. announced that it has moved more than 150,000 employees to Google’s productivity apps, called G Suite,” Bloomberg reported. I’d like to know how long that took.

8×8 sold some big accounts in the last 15 months – “Announced new deal with Regus, the leading global workplace provider, to deploy 8×8 Enterprise Communications as a Service (ECaaS) solution at Regus worldwide business centers.” And 8×8 “Announced 2,400-seat deployment across nine global locations for new enterprise customer NetSuite.” Neither of these deployments happened quickly. Try a year of roll out. Global LNP is a bigger nut to crack than getting some RLEC to release a number.

I’m not against Cloud Farming. I think that agents have to practice going deep to get more wallet share from the customer. Not just get the network and the voice, but the email, the backup, the SaaS, etc. To do that takes some skill and training, being deliberate and confident.

I just don’t know how that works with reality (in scale). The shortage of qualified Architects and talent to assist in planning and assessment are just the first bottleneck. The lack of a PMO department from most partners and providers to steer the migration and deployments will create some messy implementations as well as unhappy customers and partners. Lastly, we come to the compensation. When the sales cycle coupled with the deployment timeline is more than two years, how will that excite partners to sell it?

Certainly, there is a move to cloud occurring. It is NOT happening at the rate of change that analysts or cheerleaders are predicting or broadcasting. Most computing environments will remain Hybrid – some SaaS, some colo, some other. Much of the decisions on this matter consider such factors as flexibility, ROI, TCO and internal IT skills.

People forget that Hosted PBX/UCaaS deployments still suck. That LNP still takes up to 14 days (or longer with Birch!). That Internet pipes are on a 120 day construction delay. That even something as minor as turning up a port and a circuit between two lit data centers can fast approach 90 days longer than the two week install interval quoted. If we can’t get these relatively simple things to work, you want to jump on Complex stuff?!! [This is me LMAO!]

NOTE:

There are experts out there. COLOTRAQ has partnered with some smart people for Cyber-Security and Cloud Readiness Assessments. Certainly, Microcorp has leveraged its TAP Program to put experts at the ready for partners. Acuity in Tampa has started building up its own managed services portfolio including wireless management and VoIP deployment testing. Other master agencies have brought on some cloud talent. They had to. It will be the engineers, the talent that can break it down and talk plainly about it one minute and delve into I/Os the next that win deals. Look for those.

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    Will SD-WAN Crush Cisco?

    As more and more providers add SD-WAN, what happens to Cisco (and ADTRAN and Juniper)?

    Think about this: SD-WAN providers use an appliance as the CPE or end-point. This appliance can function as a switch, router and more. It can be a firewall, a wireless access point and more.

    cisco-gear1.jpg

    Most of the big name LECs (ILEC and CLEC) have added SD-WAN technology to their portfolio. Even lesser known former CLECs like TelePacific, NITEL, Transbeam and AireSpring are offering SD-WAN technology. That means less Cisco boxes being deployed.

    Not only is this a problem for the hardware vendors like Cisco, ADTRAN, Juniper, Brocade and Extreme Networks (mentioned because of recent news), but this is a problem for VARs and MSPs.

    Long ago, I explained that VARs selling carrier services was like CLECs selling AT&T services – you are fighting against your biggest vendor. Now those same vendors are going to take away the Box Business that floats their business. VARs still make money selling boxes (so do Avaya partners!). The margins have shrunk. The sales have declined a little year over year, but not enough to make many change their lines of business or their model.

    EarthLink announced 4000 locations on its SD-WAN as it merged with Windstream. If EarthLink can sell multi-location retail and restaurant chains, the SMB market is in play. The bread-and-butter of the VAR.

    I am not throwing around FUD. I’m saying that every industry comes under attack by new technology. The new techis SD-WAN; the legacy business is Cisco and VAR – as this segment moves to a bigger managed services provider and hardware-as-a-service.

    jobs-at-risk-47.jpg

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    Apex Technology Services
    Sponsored by Apex Technology Services, a leading IT Services company

    Music and the Mass Market

    “Maybe decades ago you could aim your songs at a mass market, but music does not really have one of those anymore. Artists have to figure out whom they’re speaking to and where they’re speaking from. The rest of us do the same. For better or worse, it’s all identity now.”

    Interesting article about identity – product to consumer identity in music on NYT.

    Seth Godin repeatedly says that there is no mass market. Yet time and again providers want the whole ocean. There are too many segments to the marketplace. There are a number of different buyer persona. There are different reasons to buy. It can’t be treated as a single market buying Cocoa Puffs.

    “But music is still, pretty obviously, tied to people.” So is user adoption of your service. User adoption is critical for lower churn, more engagement and for the business to actually get something out of the purchase.

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    M&A Update (#2448)

    So many transactions. Companies are being bought and sold like a game of Go Fish.

    Avaya sold its networking business to Extreme Networks for a paltry $100M (It is about $200M in revenue). That $100M does not make a dent in the billions in debt that Avaya is trying to scrape off in bankruptcy.

    HPE is acquiring Nimble Storage for $1B.

    LUMOS is being taken private by EQT Investment Startegy for almost a billion dollars. This comes following LUMOS buying three data center from DC74 and Clarity Communications, a fiber operator in NC.

    FirstLight Fiber’s main PE owner, Oak Hill Capital Partners, has acquired Finger Lakes Technology Group in upstate NY to fill in its fiber route. The data centers, Cisco business and fiber network all go with FLTG to FLF. FirstLight recently announced similar transactions with Oxford Networks and Sovernet Communications.

    Another RLEC was picked off by private money: “Hargray Communications has agreed to be sold to an investment group led by the Tom Pritzker Family Business Interests. Redwood Capital Investments and Stephens Capital Partners are also investors.

    In other news, Amazon AWS launched some new Cloud-Based tools to help enterprises manage their call centers. They already built the tools for internal management of their own call centers, so now they are just leveraging more internal IT/tech for revenue.

    8×8 is funny. They hire a banker and put up the for sale sign; then buy something. 8×8 acquired Sameroom, an inter-connection platform for various chat apps including Slack and Skype. ComputerWorld has a good article on the pivot of Sameroom and the 30 year history of 8×8.

    Worth noting: “Today 8×8 introduced the world’s first Communications Cloud, which combines unified communications, team collaboration inter-operability, contact center, and analytics in a single, open and real-time platform. The company also announced a number of new business application integrations, aimed at enhancing business workflows by making real-time communications, collaboration capabilities and intelligence available for third-party cloud applications, all customizable via an Open Cloud approach to fit individual enterprise needs.” Note the words inter-op, analytics and integration. These will be the key to real UCaaS or UC&C or WCC (or whatever we call it next). These are the factors the separate the sale of UCaaS from Hosted VoIP. One is valuable, bringing productivity and business change. Hosted VoIP is just dial-tone replacement.

    Today is International Women’s Day! I am recognizing it by re-posting my Women in Tech prezo from ITEXPO and an article on gender diversity from Fred Wilson.

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    How Enterprise Voice Has Changed

    Want to know how much Enterprise Voice has changed? Check out the companies that are keynoting the two biggest VoIP events.

    ITEXPO Keynotes in February were from iconectiv; Jeff Pulver; vmware; IBM; Onvoy and RingCentral.

    Enterprise Connect keynotes this month will be from MS Office365, Google G Suite, AWS, twilio and Cisco. Not Verizon, AT&T, CenturyLink, or even Windstream or Comcast.

    I’d like to hear a Slack keynote.

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    Apex Technology Services
    Sponsored by Apex Technology Services, a leading IT Services company