Connectivity Kickstarts Recurring Revenue For VARs

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For its part, Sova is looking to bring on new partners this year, especially solution providers, MSPs and VAR partners who don't take in any recurring income today.

"It's a heavy lift to learn all of [a carrier's] systems, to meet their quotas and compliance requirements. I think working with a master [agent] frees up [VARs] to do what they want to do, service their customers, while we do the back office work," Esopi said.

Many businesses are moving applications to the cloud, but the cloud can't be reached without connectivity, so VARs realize that they must make the pivot, said John Cunningham, founder and co-CEO of IT and telecom management solution provider BCM One.

"The services that VARs once sold on premises are now in the cloud, so I think they can all see it: connectivity fuels the cloud," he said.  

VARs stay busy with their current offerings, but New York City-based BCM One said it could work with partners to create a recurring revenue model and add connectivity services at their pace, taking on a business partner role similar to a master agency. BCM One gives partners the option of being engaged with their end customers, or hand off management to BCM One and collect the residual income on the sale, Cunningham said.  

"When you've been doing something for such a long time that has generated positive revenue, it sounds good to say you want to make a pivot, but then it's hard to change," he added.

Connecting with a master agent is a good first step for VARs that want to add connectivity services to their practice. After that, it's important to let their existing customer base know they are offering telecom services and then offer these businesses the same services at a better rate, Carceron's Lee said.

"They'll get that monthly check," he said. "It might be small, but it adds up."

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