Central Spark

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With top-tier vendors like Cisco Systems Inc., San Jose, Calif., 3Com Corp., Marlborough, Mass., and a host of others offering "office-in-a-box" technology, the road for a startup company trying to serve small-to-midsize businesses and corporate branches can be rocky.

But don't tell that to Sutus Inc., a Vancouver-based startup that targets SMBs and branch offices with its Business Central devices. In just the few short weeks since Sutus debuted Business Central, which marries data, communications and voice into one platform, the vendor has received several awards, including Best in Show at the 2008 IT Expo in Miami in January. Business Central has also allowed Sutus to expand its channel program exponentially—the latest big achievement for a device no bigger than an Xbox.

"It's a complete cadre of solutions. This is a really nice device for channel partners," said Sutus CEO Jerry Meerkatz. "They can deliver hosted services. Basically, we look to VARs to add that value. They can sell, maintain and service the device."

So far, Sutus has recruited more than 40 North American channel partners. Meerkatz said much of the allure is the niche Business Central fills.

"Customers need more sophisticated equipment," he said. "This is bigger than a solution you could buy at Best Buy, but smaller than a sophisticated enterprise solution. Smaller companies have trouble finding solutions at that level."

Meerkatz said the goal is to remove the barrier for channel partners looking to develop recurring revenue streams. For solution providers, Business Central can be a gateway for hosted services and long-term recurring monthly revenue, but remote management capabilities can lower customer support costs and reduce the need for costly, on-site visits by technicians.

Right now, Sutus faces some stiff competition, not only from marquee vendors offering branch-in-a-box tools, but also from the likes of Linksys Inc. (a division of Cisco), Irvine, Calif., and Allworx Corp., East Rochester, N.Y., which also offer office-in-a-box solutions to similar size companies.

But Sutus believes it's hitting the market at the right time. According to the vendor, there are currently more than 4.6 million SMBs in North America and more than 500,000 greenfield opportunities each year, making the SMB market for voice and data about $3.5 billion annually. And a recent cluster analysis from IDC's 2007 SMB Survey found that about 30 percent of SMBs plan to upgrade their data network and another 30 percent plan to upgrade their phone systems in the next year.

Dave Damer, president of ThinkTel Communications Ltd., Edmonton, Canada, said he's always looking for new, alternative products. Sutus hits an underserved sweet spot, he said.

Damer said Sutus offers a complete solution not often found in this market segment—and from a feature comparison aspect, it can't be beat.

"We've played with a couple of the other ones, but they didn't have that completeness," he said.

Next: All-In-One

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