Distributors Put IP Telephony Pieces In Place

IP telephony is a growing market, but traditional phone-based solutions also offer a good starting point for data solution providers looking to enter the space.

The converged market will play a major role in future communications, but it "is not quite at the level that initial indications were," said Anthony Daley, general manager of Westcon Division, a Nortel Networks-focused subsidiary of Westcon Group, Tarrytown, N.Y.

Westcon Division recently signed up to carry Nortel's Norstar product line of telephony solutions. Meanwhile, Tech Data and Voda One began distributing Avaya's IP Office product line, evidence that interest in voice-over-IP is growing.

"We're seeing some utilization of the converged market, but we're still seeing large utilization of standard voice products," Daley said.

Westcon Division is training data VARs on traditional phone products to prepare them for converged communications, Daley said.

"We want them to be prepared to utilize their investment for the future. It's the same thing for voice people,we're taking traditional interconnects into the data side," Daley said.

Digital Connections, a Hendersonville, Tenn.-based solution provider, has found increased voice-based opportunities in the past year, said Shawn Morris, vice president of operations and CFO.

"I don't know if a lot of data guys are going that way or not, but our customers like to deal with one company for voice and data, especially at that midmarket level that will buy Norstar. They're telling us, 'If you're doing my data, I'd like you to do my voice,'" Morris said.

Although some companies are ready for Nortel's BCM line of converged communications, voice and data across one network, many others decide to wait, Morris said.

"We've put a lot of BCMs in, but that's not for everybody. Norstar is the Cadillac of phone systems. There are millions of these things out there active in the market. It's proven. If their data's taken care of and they just need a phone upgrade and they don't see the need [for a BCM, [Norstar is the direction they're going. We will offer both. We're doing convergence. IP hasn't exploded, but there's still a need for that out there."

The slow economy may prevent some end users from installing converged communications systems, but reluctance to change also plays a part, according to Morris.

"It changes the way they do business, rather than just buying a phone switch. It may change their policies and procedures. . . . There's been a reprioritization that gets [convergence pushed back," Morris said.

But Tech Data and Voda One expect more immediate results in converged opportunities from Avaya's IP Office solution, executives at those distributors said.

"From a reseller perspective, [IP Office offers new products and new potential markets to sell into and more opportunity for account control because you become a full-line supplier of technology. It's also more opportunity for services and support revenue," said Roy Appelbaum, vice president of networking and storage technologies at Clearwater, Fla.-based Tech Data.

Tech Data and Pittsburgh-based Voda One plan to offer solution providers sales and technical training on IP Office, which is aimed at small to midsize businesses.