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.

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Most Businesses Fear Change

We have been successful as a sector (if you can call it successful) by selling replacement services by saving the customer money. From $1 per minute long distance to almost free; from $1500 T1 to $199. I even heard an SD-WAN pitch about how it would save the customer money. UGH!!!!

This is why the debt is increasing while revenues barely eke up – and in many cases, slowly decline. This is also why Hosted PBX, UCaaS, UC&C and now WCC are experiencing such slow growth. It is sold as cheap voice replacement, when in fact the move to cloud is about changing the way orgs do business. But People Fear Change!

In a survey by Osterman Research, the result was that while Most Businesses See the Value of Skype for Business, many Fear the Change.

“According to the survey, 26% of IT decision makers and 39% of business decision makers are either “somewhat” or “very” fearful about migrating to UC with nearly half (48%) of those surveyed admitting that they don’t fully understand the full impact UC would have on their organizations.”

Too much product talk; not enough talk about outcomes. Listing 400 features isn’t going to quell the fear. Knowing what happens after the sale will. Detailing the deployment process and the user training might help.

“One out of six organizations admit their legacy investments in telephony and related systems is a key factor for not immediately adopting a UC solution. While nearly a third of decision makers agree that a full return on investment from legacy technology is preferred before moving to UC, another two-thirds would consider improvements in employee productivity as reason enough to justify the migration.”

They would change if the salesperson could just give them enough reason and Value to make the change. To sell Change, you have to build Trust and battle the fear. Not an easy thing to do. You must eat the dog food. You must be enthusiastic about the platform. Sadly, that isn’t very many people.

“71% of those surveyed believe there are “significant” and even “enormous” benefits to be realized from the deployment of UC.” If there wasn’t a realistic fear that porting the numbers and deploying a software platform of this magnitude wouldn’t be a complete disaster. (Remember they probably bought an Integrated T1 from some CLEC that screwed it all up. And that was a simple request compared to implementation of UCaaS.)

There is Hope: “Osterman Research predicts the amount of users served by Unified Communications will jump from 45% today to 68% in 2017 with some of the boost coming from a remote workforce that is expected to climb from 14% to 22% in that time.” Good thing companies are closing brick and mortar office – or UC wouldn’t have a chance.

“The survey also revealed a change of heart among IT decision makers with a majority of them (55%) now recognizing Skype for Business as a legitimate productivity enhancer. With over a quarter of those surveyed already using Skype for Business as their primary voice solution, 61% intend to fully migrate to Skype for Business–71% within the next 12 months.” Good day to be a Microsoft Partner.

Analysts have predicted that up to 55% of the UCaaS market will be shared by Microsoft and Cisco. All the other players will be fighting it out for the other 45%! If only they could tell stories about successful deployments.

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

    Tidbits # 2436

    I know I just did a tidbits but there is a lot going on. Here is some of it in small bites, like tapas or potato chips.

    UC&C transitions closer to Workflow platform as task management is added to the UC&C system from Cisco:

    Channel Vision magazine reports, “Redbooth has announced an integration with Cisco Spark to unite task-centric Redbooth workspaces and communications-centric Cisco Spark rooms. Through this integration, users can now work simultaneously in both Redbooth and Cisco Spark to seamlessly communicate and collaborate.”

    The premise of Spark is that it will be so integrated with the software that an enterprise uses that a user will only have to work in the Spark window all day instead of bouncing between browser tabs or application windows.

    Velocloud is now powering Mettel’s SD-WAN solution. It is going to be huge for CLECs and channel partners. Not just powering MPLS, but offering a layer of network management, security and continuity to the new network environment that is a mixed bag of DIA, MPLS, and broadband trying to connect to SaaS, AWS, data centers and offices. It deployed correctly, SD-WAN could be the competitive edge that CLECs and OTT cloud service providers need.

    In the network space, NITEL has a database to view “Over 500,000 fiber-lit, CLEC buildings” due to its “Partnerships with over 130 providers to provide network agnostic last-mile access”. Having a fiber lit building list is good IF it was used for prospecting but it isn’t. It is mainly used to determine install times or what carrier to quote. CLECs are starting to publish their LIT building lists. TWC, too. You would think they would want that data available in as many places as possible to sell deeper into LIT premises. Not hidden behind a subscription service like NEF or Geo-Tel. Veterans in telecom would rather have a LIT building than manage a fiber construction project that can take 6 months or more.

    NITEL hired a new channel chief too. Congrats Michael Masini.

    Charter is retiring the Time Warner Cable Brand. It confused people – TWC, twtc, Time-Warner. Now it will all be New Charter. “Charter will continue to be led by Tom Rutledge, serving as chairman, president and CEO. Charter’s board will have 13 directors, including seven independent directors, two designated by Bright House’s owner Advance/Newhouse, and three designated by Liberty Broadband (including John Malone and Greg Maffei).”

    Congressional IT desk warns representatives of ransomware threats – and bans Yahoo! Mail from Congress. How will these Congress Critters get mail now? Oh, right – AOL.

    The LinkedIn password breach was 117 million records, according to ARS. Have you changed your password recently?

    Fitbit acquires “wearable payment assets” from startup Coin, from ARS.

    TelePacific Communcations receives the Women in the Channel’s first ever Platinum Sponsorship Award 2016. TelePacific is a sponsor of TCA since its founding as well as a sponsor of WIC since its inception too. (Thanks, TPAC!)

    Congrats to CRN Women of the Channel friends of mine: Karin Fields and Trish Kapos of master agency Microcorp; Hilary Gadda of TelePacific; Caitlin Clark-Zigmond at CoreDial; Brittani Von Roden of VAR Dynamics/CloudPlus; and to the rest of the winners as well!

    In broadband, the cable modem is beating anything telco. Cable is winning 1M to 11k net new adds in 1Q16.

    AT&T will be laying off between 50K and 80K workers in the next 5 years. It is trying to retrain some. AT&T will follow VZ into the OTT video arena. AT&T purchased Quickplay before launching its DIRECTV streaming service, according to Telecompetitor.

    That’s a wrap.

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    GoDaddy Buys Some Voice

    In a surprise move, GoDaddy is acquiring FreedomVoice of Greater San Diego, a former client and employer, for $42M plus $5M more for milestones. The CEO and his wife have been building it to sell since 2012. GoDaddy is getting a cloud phone product much like Grasshopper or Google Voice to upsell to its small business customers.

    The cloud phone service is a good fit for selling domains, hosting and email to VSB (very small business with 1-5 employees).

    This line in the press release cracks me up: “GoDaddy has 14 million customers and many of them have struggled to find affordable and simple telephony solutions,” said Steven Aldrich, Chief Product Officer, GoDaddy. Really? There are approximately 2000 Hosted VoIP providers in the US. You can’t get away from the adds from 8×8, RC, Vonage, MegaPath and others, so if GoDaddy’s customers are struggling, well, that says something about the perception GoDaddy has of their customers.

    GoDaddy hired a General Manager and Senior Vice President, Telephony. They must see it as a strategic product line. Or they figure since Intermedia.net bought 2 VoIP companies – Telanetix and AccessLine – that they should too.

    One channel company thought this would position GoDaddy against Microsoft. Clearly, that editor has no idea. GoDaddy, other domian merchants and Vistaprint use upsell techniques to raise ARPU. Have you tried to buy a simple $10 business card product? Or a single domain? How many screens did you have to go through? Now one screen will offer a vanity toll-free number. Another will offer a cloud phone service. That isn’t a position against Skype.

    Also, GoDaddy acquired Apptix cloud business last year for $22.5M. “GoDaddy is one of Microsoft’s largest Office 365 resellers”.

    Tucows, another domain merchant, launched Ting, an MVNO, in 2012. Ting is now in the fiber to the premise business as well in VA and NC.

    Domains are a commodity business. GoDaddy went public in 2015, which means money is easy to get to buy some revenue. So here you go. They don’t get a SIP Trunking business with FV, which means they won’t be enabling Skype for a while. The Hosted Phone system platform was being re-worked when I last saw it in early 2013.

    The PR says, “FreedomVoice products will continue to be available online and through partners. GoDaddy and FreedomVoice plan to deliver new cloud-based voice products in the near future.” With changes like this, partners usually get wary. Acquisitions mean layoffs — there is no other way to squeeze that $42M out of this VoIP business.

    In other news, a company that just crossed my radar screen – Better Voice – was acquired by Inteliquent. Inteliquent used to be called Neutral Tandem, before they bought Tinet’s network assets, re-branded, then later sold those very assets to GTT to re-focus on tandem switching. Now it is buying a cloud communications platform with an API to add to its Omni portfolio.

    More M&A to come. Too many players and not enough market share for Hosted VoIP – probably because of the way it is sold, implemented and deployed.

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

    Telecom Tidbits #2435

    A lot going on (especially with M&A). The FCC approved the Charter-TWC-BHN merger, despite being fined for blocking third-party modems.

    Frontier says that the 30K people affected by the transition (and who still have issues) will get credits and should get over it as 30K represents less than 1% of their customers. The Florida Attorney General jumped on the PR bandwagon to wag her finger at Frontier. When you deregulate phones and then give a pass on an acquisition like this, you can’t do more than wag a finger.

    Sprint just remembered that they have a fiber network. It only generates about $600M in revenue for them currently – about the same as the revenue VZW makes on IOT.

    This is offbeat: The FCC issued an Order ($100K fine) resolving a call completion investigation involving inContact.

    Evolve IP took a majority investment from a private equity firm, Great Hill Partners. It is a cash infusion for growth and ramping up. ” The Company’s services are currently deployed in four continents and 15 countries, to more than 1,300 commercial business accounts with more than 100,000 users, licensed seats and managed end points.” This investment makes it a little harder for someone like Vonage to scoop up Evolve IP.

    Vonage spent most of its acquisition fund buying twilio’s biggest competitor, Nexmo for $230 Million. This is CPaaS, communications platform as a service space that Twilio has owned. This is the elastic VoIP space. It will be the fourth platform that VB will be running, which is an expensive proposition. It is a business more like wholesale VoIP Orig/Term than it is about retail VoIP, which is Vonage’s bread and butter. This begs the question how do their salespeople sell this versus UCaaS? Two entirely different businesses.

    Diane Meyers at IHS released their Top 10 UCaaS players scorecard: 8×8, Vonage, West, RingCentral, Mitel, Verizon, Star2Star, Broadview Networks, Fuze and Nextiva. 600K seats puts you at the top of the heap. “Landing just outside the top 10 were Comcast, ShoreTel, Cox, CoreDial and Windstream.”

    Lenovo gets into the UCaaS space with the launch of its “Smart Meeting Room Solution, essentially a unified communications offering which allows various devices and screens to be able to collaborate in a workplace… The solution combines Lenovo’s ThinkCentre Tiny desktop with Intel’s Unite software.”

    Streaming video is a big thing for Live events like Blab, FB Live, Periscope and others Rich Tehrani takes a look at it here. Note: no telecom companies are in this space.

    Telcos in the US and UK are not making enough SaaS sales. A majority of the SMB cloud revenue is going to the SaaS providers themselves, according to a report.

    The Digital Divide is real: Broadband service tends to stop at the poverty line in the US.

    The FCC approved Globalstar’s spectrum for wi-fi. They want to create a nationwide wi-fi service and charge for it. No idea if the radios in devices can utilize it. Google of course despises this plan.

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    What Does Hybrid Cloud Look Like?

    Every business has a Hybrid Cloud environment. Yep. Just about all of them. So all this hype about hybrid cloud is just that… Hype. Let me explain.

    In 2003, a business would have ACT! CRM installed on one computer. They probably ran Hosted Exchange from an MSP, but had MS Office with Outlook on most computers. They probably had a website and used ADP for payroll. And maybe they had a file server running either Novell or Windows NT.

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    ADP at one time said they were the first cloud application. Email was probably the first public cloud application that most people used. (There were others before that.) The website is on a public cloud. So there are 3 apps running in the public cloud arena.

    The file server and ACT! are running in the local LAN – or what we call today servers in the data center, even if that data center is a closet. That is the private cloud. The MSP is running MS Exchange in his data center on his private cloud, sotospeak.

    Today, SAAS like Salesforce and Microsoft Office365 are public cloud apps. The data center is now a colocation in a data center. The company might use AWS or S3 for file storage. Azure or Google Compute for storage or apps. The Hybrid Cloud scenario is more defined today and a little more complicated,e specially if you throw in some VPS or IAAS platform too. But the WAN today has to connect all of these parts and pieces into an efficient network. That is where you, the telecom expert, come in.

    • Map it out for them (and to see the elements.
    • Design the WAN
    • Connect it all
    • Upsell!!!

    Where is the Upsell?

    • Charge for the Network Design.
    • Sell them some Colocation or IAAS or Rackspace;
    • Connect it together with MPLS or Ethernet or a combo.
    • Talk about Business Continuity/disaster recovery planning.
    • Data Storage or backup in case of Ransonware.
    • Ask about Cyber-Security.
    • Start learning SD-WAN for fail-over, analytics, monitoring and security enhancement!.

    Just asking the questions will put you in a different light. But asking the questions let’s you see the whole picture, not just the Internet pipe at 2 locations. You can add value (and upsell) if you see the whole picture.

    Hybrid Cloud has been around for a while. The concept is not complicated. And after you map it out, it isn’t that complex. Make it simple. That is where the money is.

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