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Carousel Industries, an Exeter, R.I.-based solution provider and Intelisys partner, has emerged in the IT channel as one of a growing group of solution providers aggressively moving into the carrier and cloud services world. Carousel recently tapped Tim Kennedy, a 25-year telecom industry vet with stints at both Comcast and AT&T, to build and lead its own dedicated carrier services business.
"Part of my job was educating them, based on my 25 years in the industry, and saying 'you are leaving an awful lot of money on the table with clients, and if we aren't talking to them about [carrier services] other competitors are,'" said Kennedy, Carousel's vice president of carrier services.
According to Kennedy, Carousel's leap into the carrier services world has paid off. He said Carousel's carrier services unit in the second quarter saw sales shoot up 42 percent compared to the prior quarter.
"In August, my group had set a new record for our residual revenue, so we are definitely seeing, in the last three or four months, a hockey stick [growth]," Kennedy told CRN.
While there are a variety of drivers behind the IT-telco convergence -- ranging from mobility to the rise of services-based IT -- one of the biggest factors is cloud. Customer appetite for cloud services -- a market Gartner estimates to be worth $131 billion in 2013 -- is driving the need for both solution providers and telco agents to ramp up recurring revenue streams as a way to address the cloud and services model.
Intelisys, for its part, has seen customer appetite for cloud services soar over the past year. According to Intelisys' Pryfogle, the company and its partners have sold $1.1 million in "new cloud deals" since May 1, 2012, with a whopping $847,000 of that being made in 2013 alone.
"You can really start to see this thing accelerate," Pryfogle said.
In addition, Pryfogle said the average deal size for a cloud services sale has grown in the past year from being less than $2,000 in monthly recurring revenue to roughly $3,000. Pryfogle also noted that in 2012 Intelisys and its partners closed 11 cloud services deals that pulled in more than $5,000 in monthly recurring revenue. So far in 2013, they have closed 36 deals over that $5,000 mark.
Pryfogle said these cloud services deals include communication-, contact center- and infrastructure-as-a-service offerings, with the IaaS piece being the largest of the three.