Government, Homeland Security Get Push From Telephony Distributors

A new report from industry analyst IDC shows the past year has been tough for telecom vendors and carriers as most companies slashed or scaled back major IT expenditures. But long-term prospects for voice-over-packet technology remain excellent despite the current telecom downturn. Sales of IP-telephony equipment for 2003 are expected to surpass $3.3 billion, an increase of 39 percent over the previous year, according to IDC. And projections indicate that number could grow to $15.1 billion by 2007. The best growth,projected at 66 percent for 2003 over 2002,will be in enterprise systems such as IP-PBXs, the analyst says.

Catalyst Telecom, a division of distributor ScanSource, is working with Avaya to get VARs trained on voice and data technologies with a series of government-focused IP-telephony training classes nationwide. Teaching data-focused VARs,who typically lack an understanding of the voice-side of the market,about how the technologies work and how they can be used in a government or enterprise setting is a major hurdle. VARs can also learn how to justify the investment and how to secure a converged environment.

Avaya, a manufacturer of converged communications products, has also been working with other distributors, like Voda One, a division of Westcon Group, and broadliners Ingram Micro and Tech Data to get VARs up to speed. VARs who 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, Voda One's vice president of sales and marketing. Successful VARs should learn the voice and data side of the market, as well as product specs and how to position and justify the sale, she says.

Voda One partners with Danvers, Mass.-based Sumaria Networks for VAR training on Avaya products. Sumaria is authorized to provide training on Avaya IP Office products, Definity, Merlin Magix, Eclips, the Cajun family of products and the Internet Call Center. Both Ingram Micro and Tech Data also offer similar Avaya training programs.

Tech Data has been lining up convergence vendors, creating solutions, training VARs and equipping its SMB-focused TechSelect network with convergence knowledge. Even though Tech Data is a broadliner, the distributor is trying to "bring VARs a boutique perspective" to convergence initiatives, according to Roy Appelbaum, the company's vice president and general manager of network product marketing. Tech Data recently reported that the company's IP-telephony sales were up 150 percent, compared with the previous year.

Avaya already has an extensive footprint in and understanding of the government market, and is working through distributors to bring that knowledge to VARs. Avaya has deployed one of the largest voice-messaging networks for the U.S. Department of the Treasury, supporting 90,000 users. Additionally, Avaya servers are in use at 12 U.S. Navy bases, eight U.S. Army bases and aboard all 12 of the Navy's active aircraft carriers. Avaya is the top-ranked vendor,with a 27 percent share,in the U.S. enterprise-telephony market, which includes IP-PBX, IP-enabled PBX, PBX and key/hybrid systems as measured by total port shipments, according to InfoTech.

In Case of Emergency
Voda One is also working with Avaya to focus on the homeland-security and business-continuity markets. The distributor is emphasizing VAR training on messaging applications that can provide emergency notification and access to vital communications in a disaster. In addition, Voda One is educating VARs about convergence and Avaya BusinessPartner products and services.

According to industry analysts, corporate interest for business-continuity solutions will boom during the next few years. IDC reported tremendous corporate interest in such solutions following the Sept. 11 terrorist attacks, but the interest didn't initially translate into sales because of cost concerns and confusion about products.

The industry analyst now believes the slowdown has fallen aside, and business-continuity sales should begin to spike. Corporate spending for IT security and business-continuity solutions will grow from $66 billion in 2001 to $155 billion in 2006, IDC projects.