Distributors Are Calling in IP Telephony to Ring Up Sales

Just recently, for example, Avaya reported an 81 percent increase in the sales of IP telephony lines in Q2 2002, compared to the same quarter last year, according to InfoTech's InfoTrack for Enterprise Communications. To keep fueling that demand, distributors, such as Anixter, Ingram Micro, Tech Data and Voda One, are strengthening their convergence business units as well as recruiting and training more VARs about IP telephony products.

VARs who continue to ignore the opportunities in the convergence market may see potential sales snatched up by competitors willing to make the investment, say executives at Avaya-based distributor Voda One. "We are seeing a lot of growth in this area," says Eva Fujan, vice president of sales and marketing at Voda One. The key to success is learning both the voice and data side of the market, as well as learning about the products and how to position the sale, she adds.

"If you can only sell voice or data, you can't propose [solutions," Fujan says. "If VARs keep their heads in the sand for the next two to three years, there's not going to be anything to sell."

To help get its customers up to speed, Voda One has secured a training agreement with Danvers, Mass.-based IT training company Sumaria Networks for Avaya products. Voda One now offers its customers authorized training on the new Avaya IP Office products, Definity, Merlin Magix, Eclips, the Cajun family of products and the Internet Call Center.

Washington, D.C.-based solution provider Matrix Technologies sent a group of sales representatives to one of Voda One's Avaya training programs a few months ago. Matrix CEO Jarrod Sipe was surprised by the depth of training his team received and the way Sumaria took the time to make his team comfortable with the technology.

"They felt the training was very valuable," he says. "[Sumaria did a nice job of delivering both product training and sales-skills training." Getting his team trained in both product knowledge and sales skills was key for Sipe, who wanted his sales representatives to learn how to position a convergence sale to meet a customer's needs.

Although IT spending is down overall, Sipe says companies are willing to buy convergence solutions if they can see the value-add for their business. For example, a health-care facility that uses its nurses to remind patients about upcoming appointments might find a cost-savings by investing in an automated system that's connected to its patient database and calls out automatically.

The key is to take the time to understand a potential customer's business and show executives how new convergence technology can actually improve the bottom line, Sipe says. Simply focusing on the technology's bells and whistles is usually not enough to prompt the sale.

Matrix relies on Voda One to connect it with business services and value that can help the solution provider grow. Sipe views Voda One as a partner that helps meet the solution provider's needs. "A distributor relationship is not all about having the lowest price," he says. "They complement what we offer."

Voda One has about 500 VARs registered to take convergence training. The challenge, Fujan says, is to take that training locally to the VARs. But through the agreement with Sumaria, more than 80 technical courses and workshops will be offered in eight cities nationwide: Boston, Chicago, Cincinnati, Denver, New York, Orlando, Pasadena, Calif., and Tampa.

Registered Voda One customers can find course scheduling, locations and pricing information on the distributor's Web site. Sumaria can also perform training services on-site for a solution provider, if requested.

Once training is completed, Voda One is still there to help VARs with convergence solutions and sales. After all, it takes VARs about six months to 18 months to get fully up to speed with the technology, Fujan says. Voda One will still try to get VARs out selling convergence solutions--even if they're not completely prepared--and the distributor will stay with them to help them win sales. Voda One even has a solution design team with 15 engineers that helps solution providers with RFPs.

Voda One has even stepped up its VAR recruitment efforts. Fujan has a group of 10 representatives who focus on recruiting new customers to convergence. So far, Voda One has been signing up about 30 to 50 VARs a month to receive training and make the transition to voice and data systems.

"[Solution providers have to know that no matter what, we are here to help them through it," Fujan says.