Small Businesses

Adtran starts VoIP program for non-certified channel partners

Doug Mohney — Wed, 10 Dec 2008 14:41:06 -0500

Adtran has launched a new program to open up its VoIP product lines to SMB-focused value-added resellers (VARs). The Value-Added Distribution (VAD) program works to team "highly skilled" distributors with partners that aren't certified in Adtran's IP telephony specialization.

Without Adtran certification or a VAD team up, a channel partner can't sell the NetVanta line of VoIP products on their own. Having VAD means distributors can help smaller partners now sell NetVanta. VARs typically spend between $4,000 to $6,000 to get VoIP training and knowledge.

Under the program, authorized distributors will provide pre and post-sales support for VoIP products, work with "non-specialized" solution providers to plan product deployment, and even will be able to sell installation services from Adtran.

Adtran started the program because it found it was losing out on SMB VoIP sales through non-specialized partners. The company says there shouldn't be conflicts for partners that have already specialized in VoIP; around 250 of Adtran's 2,200 solutions providers are currently VoIP-specialized. Top-level partners already specialized in VoIP on their own get better pricing by buying direct, because they don't have to pay for the overhead in purchasing through a specialized distributor.

For more:
- Channel Web comments on the Adtran announcement. Post.

SPOTLIGHT: 10 ways to get better VoIP deals

Doug Mohney — Tue, 02 Dec 2008 14:20:14 -0500

With tighter credit and slower sales, it's a buyer's market. VoIP-News pulls out 10 ways to get the best deal on VoIP systems and services - it's not a list resellers are going to enjoy much.

At the top of the list is asking for competitive bids, but making sure you have a tight RFP and perhaps a consultant to garbage-filter convoluted answers to what should be straightforward technical specifications. Working the system with a multi-year contract on software and/or maintenance is suggested along with trying to get free feature upgrades and other goodies thrown in. Bundles are also a good way to save some cash.

Like car salespeople, vendors and salespeople have end-of-month and end-of-year quotas to make, so you've always got some leverage if you pick the right time to negotiate. We're not so sure that last recommendation -- "being a showcase for emerging technology" -- is the best way to save cash; pioneers are typically the guys with the arrows sticking out of their backs.

For more:
- VoIP-News lays out a 10 step program to save cash on your new VoIP system. Article.

VirtualPBX launches open-system VoIP peering

Pete Wylie — Tue, 18 Nov 2008 13:46:00 -0500

VirtualPBX announced today that it is introducing native support for open-system VoIP peering, which will enable small businesses to select their optimal set-up for communications. Clients will be able to customize their telephony offering with the mix of VoIP services, traditional PSTN, softphones and handsets that best suits their individual needs.

VirtualPBX COO Greg Brashier said the company offered a mix of high-end products, useful features, extended capabilities and advanced technology that no one in the hosted PBX market could match.

"All along we've been agnostic as to platform," Brashier said. "Some of our customers want to reduce or eliminate their PSTN use, because of the cost savings of using a VoIP service. But others are more concerned about call quality over traditional copper, so we can facilitate either, or a mix of both for our customers."

Brashier stressed that the blended nature of VirtualPBX's offering was the greatest value driver for the end-user. He also noted that the lack of capital expenditures in a hosted PBX offering makes them even more attractive in the present climate, as businesses look to avoid unnecessary capital expense.

For more:
- see the VirtualPBX release here

CompTIA: SMBs see growth opps; IT spend more cautious

Doug Mohney — Mon, 10 Nov 2008 10:12:28 -0500

A new survey released today by the Computing Technology Industry Association (CompTIA) says SMBs are hopeful that business will grow over the next 12 months, but they're a little more cautious when it comes to spending dollars on IT and communications resources.

The survey, covering 777 SMBs in the U.S., Canada, and the UK, found that 85 percent plan to hire new employees over the next 12 months, 54 percent anticipate revenue growth of 10 percent of more and 40 percent plan to add new business locations.

However, only 51 percent of the SMBs surveyed said they plan to increase their tech spending over the next 12 months with 49 percent expecting their tech spending to remain flat or decline. This is different from the 62 percent who said they were planning to boost spending in last year's study and 38 percent saying flat or decline.

CompTIA says the 2008 survey is actually a good indicator for the tech industry; in earlier times, IT would have been among the first items trimmed back. Today, SMBs are "savvier" because they need technology for more of their core business operations.

New technology investments (computers, phones) also support the new head counts expected to be added; on average, SMBs say they will add 8 new employees over the next 12 months while 40 percent plan to add between one and five new locations.

For more:
- CompTIA talks of bullish SMBs. Press release

8x8 reports slight growth

Pete Wylie — Fri, 31 Oct 2008 10:06:24 -0400

8x8, the provider of Packet 8 broadband services, announced its fiscal 2Q2009 results Thursday, and it finds itself in a considerably better position year-over-year. Although 8x8's income is down to $44,000 from $1.2 million last quarter, it now is debt free and has $16 million in cash, while last year's 2Q report showed a $2.6 million net loss.

The company added 1,846 new customers in the quarter, bringing its total customer base to more than 13,700 companies, according to the release. It also grew its cash and investments for the sixth-consecutive quarter, bringing its total to $15.8 million, an increase of $1 million from last quarter and nearly $3 million from the same fiscal period in 2008. Revenue was up a slight $100,000 from last quarter, increasing to $16.4 million from $16.3 million.

"8x8's money saving Virtual Office communications services are more critical than ever to businesses," said 8x8 Chairman & CEO Bryan R. Martin, in the release. "With nearly $16 million in cash and no debt, the Company remains well positioned in its efforts to transition more and more small businesses away from budget-wasting legacy phone solutions."

For more:
- see the 8x8 release here

Visiting Allworx - Slideshow

Doug Mohney — Thu, 30 Oct 2008 10:12:34 -0400

What secrets and amusements lurk among the hallways of Allworx's headquarters in Rochester, NY?

FierceVoIP got a look inside the company's testing lab and marketing "war room" as it visited with Allworx executives this week. You'd be surprised what you come across on a company's walls and in the parking lot.

The full slide show can be found here.

Sutus raises cash, debt, hires new CEO

Doug Mohney — Tue, 21 Oct 2008 16:44:10 -0400

Vancouver-based Sutus has secured $2 million in venture funding, plus another $2.5 million in debt financing. It has also added a new CEO.

The $2 million in cash came from BDC Venture Capital, and the $2.5 million in debt financing is being provided by MMV Financial. In addition Sutus is bringing telecommunications veteran Mike Donnell on as CEO; Donnell previously lead New Global Telecom (NGT) as its CEO and has also clocked time as CEO of Zi Corporation and Cellular One.

Founded in 2002, Sutus has over $15.5 million invested into its all-in-one Business Central box targeted at the small office market. The company launched product in late 2007.

Sutus' Business Central was specifically developed for businesses with up to 25 employees and includes a phone system that supports both PSTN and VoIP connections, a file server, email server, router, firewall, wireless access point, VPN remote access server, and automated backups; it can also serve as a gateway for hosted servers and includes extensive remote management and support features for the VAR/resellers that install it. This reporter doesn't know if a kitchen sink option is available.

For more:
- Sutus announces new CEO, funding on MarketWatch. Release.

FierceVoIP Leaders: Chris Lyman, CEO Fonality

Pete Wylie — Mon, 15 Sep 2008 08:56:36 -0400

FierceVoIP: How did you get the idea for Fonality?

Lyman: I had purchased a start-up residential VoIP service from a friend and I realized I needed a phone system for the office. I had never priced one before, and so I was shocked to get a five-digit quote for the office staff of four. That's when I realized I was in the wrong market, and that's really how I started Fonality. I realized there was a huge opportunity in the SMB market for a better priced option than the major players were offering.

FierceVoIP: Bloggers have raised concerns in the past about the remote access you have to the IP-PBX solution. Have customers raised the same ones?

Lyman: Well it's more something we just discuss with the customer. We do have access to the end-users box, but that's a cost-saving mechanism, not a privacy invasion. Part of our value proposition is that updates and add-ons to existing systems don't require a truck roll. We can do it remotely, and save the customer a lot of money, while also ensuring the highest level of security. I mean, that's how we competed and eventually won the Dell deal. We weren't even on their radar until they realized our solution runs on a Dell box, and they looked into it and saw how much more cost-effective the Fonality solution is.

FierceVoIP: Speaking of the Dell deal, who was your biggest competitor there and in general in the VoIP space?

Lyman: I think in order it's probably Avaya, Cisco, Nortel, Shoretel and I guess down to someone like Panasonic.

FierceVoIP: Why do you think you are competitive with these companies, all of which are larger and have more legacy business?

Lyman: I think we are competitive, and will continue to be competitive for two reasons. The first, most obvious one, we just are a better value. Our systems, since they are PC based, are much cheaper to make and install. Secondly, the open source code that we built our solution over enabled a really low cost of development, which we can in turn pass to the customer. We also offer a higher degree of mobility and ease of transition to additional systems or features.

FierceVoIP: Do you have any plans to expand out of the SMB market and compete for larger accounts like Dell more often?

Lyman: We are really not comfortable working with a customer with over 500 seats at one location, and I offer this rationale. There is a deli near our office, and you go in to order, they hand you the menu; it's got like 16 pages. You can be pretty sure, that while nothing is going to be outright terrible, nothing is going to be that good either. I don't want to be that company. Our business model depends on the pricing we offer SMB's and I don't see a move out of that space anytime soon.

FierceVoIP: Well it's obviously working well for you; Fonality has demonstrated 15 consecutive quarters of growth.

Lyman: It's actually 16 now. We just got the second quarter numbers, and surprisingly enough, it was the largest percentage growth we've ever experienced at Fonality, revenues increased 31 percent.

FierceVoIP: That's impressive for a business that has already grown considerably. Do you foresee any slowdown in the growth given the present condition of the economy?

Lyman: I don't quite know, to be honest. We continue to grow and I guess I can think of two reasons why we would see continues growth in recession conditions. One, as budgets get tighter, our solution becomes more attractive. It enables people to work from home elegantly, as well as being cheaper to install and operate than traditional PBX offerings.

Second, I think more and more businesses are recognizing that the whole communications industry will be IP soon, and they are examining IP-centric offerings to cut costs and increase mobility.

FierceVoIP: Where do you see the industry, both your niche and the broader VoIP space, in the next three to five years?

Lyman: Well I think IP is the only way to go in the future. I just think "VoIP" as a term, can be misused and misunderstood, because it's really a question of "Which communications will not be IP in three to five years?" Kind of like if you asked me when the first digital camera was released, where I thought that industry was going. I think there really isn't any other way to go. Most of the big telcos even, its IP for most of a long-distance call, and it might travel the last mile on copper. And that's even getting replaced soon enough. The biggest question to me is when all the communications someone wants begin to converge; for instance, on my Blackberry, I'm texting, browsing, SMSing, all in addition to regular phone calls. I think that's where the industry is moving, total communications convergence and ease of use and access, and the mobility that IP can bring.

VoIP consulting for SMBs

Doug Mohney — Wed, 23 Jul 2008 17:02:09 -0400

A new study finds small businesses are bringing in outside help to figure out VoIP buying decisions.

In research conducted by The Brookside Group, companies found that buying a phone system had become a much more complex task. SMBs expect more out of the systems they choose, so they're increasingly reaching out to consultants to help them make the right choices.

Likewise, consultants are depending more on revenues from VoIP, with more SMBs coming to them to help in phone system decisions. Companies are trying to decide between IP PBXes and hosted solutions, plus expressing more of an interest in unified communications and being able to bring in a broadband network capable of supporting IP telephony.

Companies believe using a consultant will help them save money on a phone system/service purchase and potentially help them out with a specific new technology or service. A consultant can conduct a needs assessment, evaluate and choose vendors, and even go so far as to write RFPs and assist in contract negoiations.

Consultants are also moving into deploying and managing phone networks on an outsourced basis, due to their involvement with network design and configuration.

Top verticals seeking help include (in order) health care, banking and finance, local and state government, and education. Lawyers and accountants also rely on consultants for phone system help.

For more:
- VoIP-news.com features consultants helping SMBs with VoIP

Related articles:
UC Confuses SMBs
Marketing mudding VoIP and UC

Jajah Launches SMB Hosted IP PBX

Doug Mohney — Sun, 20 Jul 2008 16:48:47 -0400

Not content in simply running the running the back-end VoIP infrastructure for Yahoo and a number of other companies, Jajah has launched a hosted IP PBX service for SMBs.

Jajah's SMB Solution Suite includes a fully functional PBX, with the set of services allowing SMBs to add IP to their existing phone systems and make VoIP calls to over 200 countries. The company already claims it has customers from "local Greek restaurants ... to Logitech."

Features of Jajah's SMB suite include the ability to make or receive calls via mobile, land and softphones with specific plug-ins for Blackberry and Windows Mobile. Productivity tools include the ability to embed telephony within office apps, including support for Microsoft office and Google Enterprise Apps and including a centralized address book, data base, and directory look up services. There's also support for presence, visual voice mail, SMS, conference calls, schedule calls, call logging and address book synchronization.

Available through www.jajahsmb.com, the platform will support companies with up to 5,000 staff--a little bit bigger than the typical variable definition of an SMB (anywhere from 50 to 500 users, depending upon vendor). Jajah will announce a global indirect channel partner in the coming quarter.

For more:
- Jajah announces SMB hosted IP PBX solution

Related articles:
Jajah Adds Gizmo to Customer List
Budgets drive N. American SMEs to hosted IP telephony

Costco (a Few) Selling Hosted VoIP

Doug Mohney — Mon, 14 Jul 2008 00:12:02 -0400

With CompUSA dead, Costco appears to be filling a low-cost SMB tech void, first selling Microsoft ResponsePoint and now offering Sotto Wireless hosted VoIP services.

Sotto Wireless, based in Seattle, will offer its Sotto@SOHO services through Costco Wholesale Business Center stores in Washington state, California, and Phoenix. Sotto is offering hosted VoIP services bundled with cellular. The Sotto@SOHO service is for businesses of up to 10 people working anywhere, with Sotto phones placing and receiving calls over VoIP when in range of a Sotto WiFi gateway. Away from the office, the Nokia smart phones switch to a GSM network.

Costco is going to sell starter kits with two Nokia E51 smart phones and a Sotto gateway for $399, with a $699 kit including two Nokia 61i phones, a gateway, and a Polycom IP320 desk phone with Office Attendant; service plans start at $49.95 per month for unlimited nationwide VoIP, plus additional charges for bundles of cellular voice minutes. An introductory offer includes 90 days of free wireless VoIP service, 1,000 cellular minutes, 20 MB of data, 100 text messages, and a 60-day, money-back guarantee.

For more:
- Marketwire reports on Sotto Costco SMB Host Deal

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