Industry Perspective: VoIP VARs Answer Call Of Recurring Revenue
By Gennifer Biggs, Business Solutions magazine.
Maybe it's because of a push from their customers to handle converging technology, easing the management needs and costs of having multiple IT partners. Maybe it's the steadfast nature of today's voice platforms, which lengthens the refresh cycle on voice communications products. Whatever the reason, voice over Internet Protocol (VoIP) VARs are finding themselves moving toward services and the annuity revenue flow enabled by that business model adjustment. "Until recently, the voice resellers could sustain their growth with just products, but then these other forces started to hit," explains John Black, president, Catalyst Telecom, a voice and data solutions distributor. "Voice isn't like data; refreshes and new platforms aren't adopted every couple years. It becomes hard to grow unless you're landing new accounts, and that is the hardest thing to do." So where does that leave VoIP VARs? "They need to look at how to add services, more products, and how to change their business model," says Black.