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The IT and Telecommunications Worlds Collide

The IT and telecommunications industries are merging more each year and there are big profits for channel partners who get into the game sooner.

We all know that most businesses operate on Internet access. Phone systems have shifted towards VOIP. The Internet pipeline has become mission critical to almost all businesses.

AT&T’s Brook McCorcle, President of Emerging Business Markets, said “AT&T will be a different company within 5 years. It is becoming a technology business. Our direct master agents already resell our services to their clients on a recurring revenue business model and we are seeking channel partners to do the same”.

If any VAR, MSP or ITSP is not up to speed on the opportunity and revenue potential that they can generate from reselling the services of Telco companies, then this is your wake-up call. What if you owned the Internet piece of the business for all your clients?

The margins are huge. The sale is easy because the demand is already there.  The recurring revenues are exciting. The Telcos provide all of the deployment and maintenance.

With Cloud offerings like Micorsoft’s 365, the need for Telco services will increase. HP’s Jeff McCullough, VP WW Channels Organization commented “We are probably the World’s largest user of Microsoft’s 365 and we want to leverage our experience and expertise to help our channel partners to sell these types of solutions”.

At the recent ChannelCON, there were several Telco master-agents looking to partner with VARs, MSPs and ITSPs. The race has already started and the way in which these two industries will play in the same sandbox is starting to gel.

Surely Telcos will continue to buy IT companies to gain a footprint and the expertise. On the other hand, traditional IT firms could easily add the Telco offerings to their clients.

I had the pleasure of doing a podcast interview with Doug Green, Publisher of Telecom Reseller recently. Here is a link to listen in: http://www.telecomreseller.com/2014/08/08/var-office-suite-and-technoplanet/

As the Telco footprint increases in the IT channel, we will be watching for the opportunities. We are looking for more feedback from VARs, MSPs and ITSPs so we can help the channel to navigate through this opportunity. We welcome your input.