Comms Dealer

Vodafone's results for the year ended 31st March 2015 showed group revenue up 10.1% to £42.2 billion, with a return to growth in Q4.

Professor Mark Skilton of Warwick Business School commented: "The results are encouraging as the mobile industry becomes ever more indispensable infrastructure for data and voice traffic services.

"All the mobile operators are reporting 'caution' as the adoption rate of 4G is still low - 14% for Vodafone - but it is a big opportunity as customers will migrate to these new standards if the network speeds and coverage are there.

"The focus on 'quad play' is common for many telecoms players as they seek to increase revenue from existing customers buying more services across multiple channels of broadband, mobile, voice, and content services.

"This is a rich area for pricing and margin improvement in a cut-throat market where operators are desperately trying to find anything that helps create a 'sticky service' to retain and increase revenue share per customer.

"The challenge for telecoms operators is running their business in a quad play market, which is highly acquisitive.

"Firms are competing mainly through acquisition in countries as well as addressing complex internal integration of services into a new bundled multi-play digital platform. This is a big growth area for telecoms operators and investors are excited by this."

A free offer could jolt SIP adoption into a phase of unprecedented growth according to TalkTalk Business Managing Director Charles Bligh, who says the days of sluggish uptake will soon be long gone following the operator's acquisition of tIPicall and its subsequent launch of free wholesale SIP to the channel.

From the moment when partners expressed an appetite for SIP trunking, the invitation was there for TalkTalk Business to give them what they want. It has done just that, and more, with a clear commitment to 'get serious about SIP' and address the pressing question. Bligh noted: "Discussions with partners during the last 18 months about the evolution of our data products always led to the big question - 'when are we are introducing wholesale SIP trunking?'. With our products now mature and going well, fulfilling the SIP requirement became a case of sooner rather than later."

TalkTalk Business has been busy building out its wholesale data proposition for five years. First selling broadband, then Ethernet, EFM, EAD and FTTC. During this period the network operator developed strong credentials based on its robust and far reaching network across 3,000 exchanges. Perhaps not surprisingly, voice over data was the next logical step, and being able to break his silence on the matter did not come a day too soon for Bligh. "I've been looking forward to this for months," he added. "Notably, we are already a key SIP provider, carrying over 16 billion SIP minutes per annum and we have won awards for SIP connectivity over data. But our activity was primarily market-led and in the high end Ethernet space, rather than a wholesale variant. That's been missing until now. This is a full scale channel play."

The acquisition brings the full complement of wholesale SIP trunking, including portals and value propositions such as fraud management and DR, all with scalability. Bligh is 'going after' BT and Gamma plus other rival providers, and doing it in a disruptive way, offering free SIP trunking to partners who buy connectivity from TalkTalk Business. Nor is that all. The network operator has also lowered the cost of voice termination, and according to Bligh the end-to-end product could land partners between 20-30 per cent savings. He noted that SIP trunks will also be sold off-net. While not free, off-net SIP comes with a 'very disruptive price', according to Bligh.

While rivals may gulp at the prospect, TalkTalk Business is busy advancing its 'one throat to choke' strategy and aims to attract hundreds of new partners in an all-out push to achieve dominance. The move may prove to be a masterstroke of titanic proportions, believes Bligh, who hopes to onboard hundreds of new partners with a channel campaign that promotes TalkTalk as a one-stop-shop that offers a single point of contact with account managers able to handle both voice and data queries, reducing complexity and simplifying processes.

This is also a straightforward advance on the more complex bundles offered by rivals, claimed Bligh, who said TalkTalk Business' radical approach to wholesale SIP trunking is a 'charter for simplicity and commercial empowerment', first proposed last summer and now increasing the profitability of partners. It was in July last year that TalkTalk Business decided to add wholesale SIP to its portfolio, and sitting on the idea was not an option.

"We acted quickly to assess the players in the market with the potential for wholesale SIP trunking, both small and large companies," explained Bligh. "tIPicall was building a platform that could scale substantially, and a key point of discussion with its Chairman Neil Linter and the management team was that we could take their aspiration and scale it beyond their wildest dreams. It's one thing to have thousands of SIP trunks, but it's another to have hundreds of thousands."

As for Bligh, he says the wind is changing across SIP territory and a joint approach with tIPicall will bring an audible cheer from Land's End to John O' Groats as partners catalyse the uptake of SIP services. This comes at a time when analysts point to 30-50 per cent increases in uptake every year, but down on reality street the UK is lagging. "Doubts about the technology persist despite its proven success," commented Bligh. "However, the launch of wholesale SIP over the TalkTalk Business network will create confidence in the channel and remove those barriers to adoption.

"There has also been a perception that SIP is too expensive, hard to do and involves various suppliers. But our wholesale SIP is on-net and priced to disrupt the market. We are entering this space in a big way and have dropped the price to make SIP more profitable for partners. This is the ultimate statement on our channel commitment. This is all about the channel and expanding the marketplace."

Flexibility is also at the heart of TalkTalk's new offering, with partners able to scale contracts up or down on a monthly basis without committing to a minimum term. This bout of initiatives is touted as a 'game changer', and Bligh says it's up to rivals how they respond. "Some do bundles, but we are taking a far simpler approach," he explained.

"Our SIP trunks are free. This is quality data at great prices, with voice termination also at a great price. When you add it all together we're not just disrupting the market, we are also changing the game. We're changing the nature of the discussion with partners. This is a huge opportunity for them to maximise their revenue potential, especially as the switch-off of traditional voice in 2025 approaches, while ensuring an enhanced experience for their own customers."

What is not so clear for the moment is how TalkTalk Business will use tIPicall's hosted telephony solution called OnePBX, and its sister project MobiPBX, which offers hosted seats as a mobile application. Both were launched to the channel in July 2013. "TalkTalk Business will continue to resell and support these solutions," commented Bligh. "And this year we will determine how we move forward with them."

The running message for now is that SIP requires robust and reliable connectivity, and with TalkTalk Business SIP's free. But free does not mean low value. "We are sharply focused on value adds like fraud protection and DR," added Bligh. "We are maintaining tIPicall's purpose-built provisioning, management and support portals, its 24/7 support across voice and data, and dedicated sales and operational training, testing and on-boarding.

"The tIPicall team have done a wonderful job building the business and the brand. The more we got to know them - their approach, skills, the scalability and quality of their asset - the fit with TalkTalk Business became crystal clear. This is why we say our wholesale SIP is 'powered by tIPicall'. The name has risen to prominence over the last two years."

tIPicall was established seven years ago as a project to build a wholly owned UK SIP platform. In 2010 the company negotiated a relationship with Tata to exclusively provide its SIP capability to switchless resellers. Since then the company grew to become one of the main SIP and hosted providers.

TalkTalk Business completed its acquisition of tIPicall in April for an undisclosed sum. tIPicall's senior management now form the core team driving the new SIP trunking business within TalkTalk and are now based in the operator's Farringdon office. "This is our first acquisition in three years, and we are very much in top gear with our new capability," commented Bligh. "We'll let our partners do the talking over the coming months."

TalkTalk Business is on a mission to shake-up the wholesale SIP market with a free offer following the acquisition of SIP and hosted carrier tIPicall. TalkTalk Business MD Charles Bligh (pictured) says the new proposition is the 'ultimate statement' on channel commitment, offering partners free SIP, disruptive voice rates and competitive connectivity pricing.

"We're not just disrupting the wholesale SIP market, we're changing the game," he said.

Bligh hopes to onboard hundreds of new partners in a market assault that also includes lower voice termination charges. According to Bligh the end-to-end product could land partners between 20%-30% savings.

"Voice over data is the next logical step for TalkTalk Business," he added.
"We are combining what tIPicall does very well with our data and SIP integration."

As well as wholesale SIP and a highly scalable platform, the acquisition brings value propositions such as fraud management and DR, all free.

tIPicall's MD Guy Miller has been appointed Director of Next Generation Voice Services at TalkTalk Business.

He said: "Our passion for innovation and TalkTalk's reliable network will create a springboard for partners looking to access the full connectivity portfolio while leveraging the underlying cost base and scale for SIP services."

Bligh added: "The tIPicall team have done a wonderful job building a platform that scales substantially. It's one thing to have thousands of SIP trunks, but it's another to have hundreds of thousands."

SPECIAL FEATURE: Click here for the full interview

Exertis has acquired Computers Unlimited, which supplies a range of third party branded software, IT hardware and consumer electronics products to over 2,000 partners in the UK and Europe.

The business employs 200 people and operates from offices in London, Paris and Barcelona.

The acquisition brings new product categories and specialisms to the Exertis portfolio, with a range of products sourced from 70-plus manufacturers including Apple.

Exertis Group MD Niall Ennis said: "We will extend the reach of Computers Unlimited to the multiple retail channels that Exertis supports in the UK and France. 

"This acquisition also extends the Exertis footprint into the Spanish retail sector where Computers Unlimited has a growing presence.

"We see significant opportunities to expand the reach of the brands currently working with Computers Unlimited into the Exertis operations in the Nordics and the Middle East."

James Sanson, Chairman and CEO of Computers Unlimited, said: "The opportunity to combine Computers Unlimited's brand and channel building talents with Exertis' retail, logistics and geographic strengths is compelling."

Exertis partners with 350 global technology brands and over 14,000 resellers, e-commerce operators and retailers across Europe. 

In its most recent financial year to 31st March 2014 Exertis reported £2.3bn turnover and 22.4% growth.

Unify has taken decisive steps in its journey towards becoming a channel-centric organisation and there's no turning back, according to Jon Pritchard, Executive VP of Worldwide Channels. That was the message trumpeted to the 200-plus partners from 50 countries who converged on the Unify Partner Conference 2015 in Florida.

Staged under the umbrella headline 'Engage, Evolve, Execute', the event served as a platform for the vendor to showcase its future roadmap and provide an update on the progress of its channel building strategy.

Pritchard said: "Unify has now transitioned 54 of the countries we do business in to channel and distributor-led sales only.

"By the end of Unify's 2015 fiscal year we will have only nine countries that remain a combination of channel and direct sales.

"In two years, we expect to get 45% of our revenue through the channel. We can't go back. Our future depends upon the success of our partners and we are committed to working with them to stay ahead of the changes facing the technology market today."

An important part of Unify's channel plan is its Partner Programme. Launched at the beginning of this year more than 2,000-plus partners now take part of the scheme, which is proving popular with 91% of partners planning to develop their Unify business in the next fiscal year.

The Unify Partner Programme rewards partners for their expertise, offering specialisation level discounts to partners who invest in Unify.

The company has also added to its channel management team with two hires.

Simon Minett joins from Westcon Group as Senior VP of Global Partner Management; while John DeLozier takes the role of Senior VP Channels for North America.

"Unify's success will be based on our partner's success," added Dean Douglas, CEO of Unify.

"We have very clear rules of engagement in place to ensure that we are doing all we can to help our partners execute and grow their businesses."

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Cisco's product sales continued rebounding in FQ3 following a late-2013/early-2014 slump, rising 6% yr/yr to $9.33bn.

Services revenue were relatively stable and rose 3% to $2.81bn, says the company, reporting Q3 results.

Service provider orders (-7%, with US down 17%) remain a weak spot, as do emerging markets (flat, with BRIC markets declining), but enterprise and public sector orders (each up 7%) were healthier, as were SMB orders (+6%). Americas and EMEA orders were both up 2%, and Asia-Pac 1% (8% exc. China).

Product line performance: Switching revenue +6% yr/yr in FQ3 to $3.56bn. Routing +4% to $2bn. Collaboration +7% to $973m. Data centre (UCS servers) rose +21% to $801m.

John Chambers, Cisco chairman and CEO, said: "Cisco is in a very strong position and we delivered another solid quarter. Our vision and strategy are working and we are executing very well in a tough environment, as evidenced in our revenue growth, profitability, strong gross margins and cash generation.

"Our customers feel the pace of change and disruption in every industry and market, and know their success depends on digitising their business. Whether they are the disruptor or the incumbent, they are coming to Cisco as their strategic partner.

"We believe we are pulling away from our competition using the same formula we've always used: integrating our products in every category into architectures and solutions that deliver real outcomes. We've created this opportunity and it is ours to execute.

"Europe first turned up for us five quarters ago, and since then has averaged mid-single-digit growth, including this quarter. If you take out Russia, we saw solid growth across all of Europe, Middle East, and Africa of 4%."

SAP is to change its partner programme to bring in more non-standard channels including OEMs, ISVs and integrators.

Rodolpho Cardenuto, the head of the company's Global Partner Operations, told the recent partner event that 'Partners first, simple wins, deliver value' is the theme.

SAP has grown its number of partners from 2,000 to 13,000 in the past 10 years and increased the number of partner solutions from two to 57 in the same period.

As a result, partner-driven revenue has increased tenfold since 2005 and now makes up 33% of total revenue.

To simplify partners' go to market, Cardenuto announced that the SAP PartnerEdge programme will be revamped in 3Q15.

PartnerEdge Next Generation includes new programmes for training, enablement and value creation, offers more attractive discounts and reduces barriers to adoption of SAP solutions as SAP wants all of its partners to use its products. SAP PartnerEdge also provides 'one holistic partner management model' to reward partners for their total business contribution.

Analyst TBR says SAP will need partners to be key evangelists around transformational solutions such as S/4HANA and its IoT portfolio as these solutions require strategy-led engagements between customers and partners.

Partner Select is the new programme built for lower midmarket partners, designed to reduce cloud barriers and offer fixed-price packaged solutions and services.

In Ofcom's Business Connectivity Market Review (the market through which Ofcom regulates leased lines) the watchdog proposes that BT should give competitors physical access to its fibre-optic cables, allowing competing operators to take direct control of the connection.

This is subject to consultation until the end of July 2015 and this form of access would not be available until April 2017.

Matthew Howett, Practice Leader, Regulation at Ovum, said: "For many years now there have been calls for Ofcom to force BT to offer a dark fibre product. Those calls have been answered. The price for access and the conditions on which it is granted will now be subject to debate before Ofcom finalises its position later this year. 

"As well as satisfying the demands of large enterprise users, the announcement is also set to partially reassure UK mobile operators should BT successfully acquire EE later this year.

"Vodafone, for example, has been particularly vocal about the need for a dark fibre product to connect base stations and backhaul mobile traffic without fear of interference from BT.

"This is relevant since BT currently provides all UK mobile operators with high-speed mobile backhaul links.

"Elsewhere in Europe, a requirement for dark fibre is fairly common. According to recent Ovum research, around half of the 28 member states already have a requirement in place - along with countries in Asia such as Japan, Singapore and South Korea."

Knight Corporate Finance has advised Siphon Networks on its £1.5m investment from Finance Wales.

The investment will boost the Cwmbran-based UC provider's growth plan as it looks to increase its presence in the UK and Europe.

Steve Harris, MD of Siphon, said: "Securing this investment is a significant milestone for Siphon and demonstrates Finance Wales' confidence in our business model as well as in our professional and technical expertise. Knight were instrumental in securing the investment and providing us with a range of options."

Paul Billingham, Director at Knight, added: "ICT businesses with strong management teams continue to be held in high regard by institutional investors."

Hosted telephony provider Inclarity has launched a new £7 per user, per month licence package for channel partners to include a Polycom VVX 400 handset with colour display.

The 36 month deal was announced at the company's partner day held at Ascot Races where it took the opportunity to give partners a specialist view of the fast growing IP market and demonstrate its expanding range of value added solutions including hosted UC and hosted video.

Speaking to Comms Dealer at the event, MD Enzo Viscito (pictured) commented: "Our new licence offer is all about breaking down another barrier for our reseller partners when they are in front of customers looking for a true OPEX hosted solution.

"We chose the VVX because it's a high quality mid-range end point and it's a great selling point having a colour display."

Special guests at the event included Mike Wilkinson, VP of Product Marketing at Broadsoft (Inclarity's hosted platform partner) and specialist VoIP analyst Matthew Townend.

Both predicted a massive hike in hosted telephony uptake in the next two years.

"Hosted will take more market share in 2016/17, that's for sure," said Wilkinson. " It has a 10-15% market share in the UK currently but we expect this country to follow the highly competitive Dutch model where 35% of telephony seats deployed are now hosted."

Underlining the scale of Broadsoft's global outreach, Wilkinson said the company's flagship VoIP product Broadworks was now powering 444,000 seats for the US Postal Service.

Promising more apps and cloud services in the future Wilkinson added: "We are looking at Wi-Fi to bring mobility onto our platform and a number of vertical solutions on WebRTC to extend applications onto web browsers."

Townend, MD of Illume Research, said the hosted voice market in the UK has grown 17.49% in the last six months with 245,489 seats now deployed.

He said: "Traditionally, the market was driven by small and large enterprises, but the mid-market is now showing strong growth following the roll out of fibre and affordable quality ensured networks.

"The switch from ISDN to SIP is keeping BT people up at night and by 2016/17 there will be more SIP trunks than ISDN.

"BT will be looking to migrate everyone off traditional telephony platforms by 2025. The ISDN network is now end of life and the market is moving fast to an IP world."

Inclarity Marketing Manager Jaci Hale reinforced the company's commitment to helping partners sell more hosted solutions, announcing a range of marketing aids including a new company video which can be white labelled by partners, an upgrading of the Playbook Partner Portal, new weekly training webinars and a monthly Foresight newsletter.

Concluding the proceedings, Viscito said: "We are not the only Broadsoft switch in town, but we focus on offering the best value add possible.

"This includes all customer service calls answered within five seconds, and we have a great knowledge of the Broadsoft platform with all of our engineers trained, as well as a brand new core network.

"We also offer our partners marketing and pre-sales support. It's about helping them generate leads and wining business.

"I am massively excited about the market. We are three years behind the USA and I have seen what the hosted companies are doing out there.

"Back in 2007 hosted was a struggle, but in 2012 I saw things starting to boom. Now it's a tidal wave."