Posted: 01/2005  to Phone+

Target: SMB
Extending Enterprise-Strength Converged Network Solutions Downmarket
By Laurie Usewicz

Solution providers can achieve more success in the SMB market if they focus on understanding their customers’ requirements and develop targeted strategies that resolve business problems. There are many technologies available today that not only reduce maintenance costs of a network infrastructure, but also enhance the overall efficiency of an operation. Today’s convergence technology solutions enable companies to intelligently route information to the places it needs to be when it needs to be there. These solutions are especially appropriate for SMBs that have high levels of customer interaction.

SMBs should have access to the same enterprise-strength convergence products that large companies have enjoyed. For example, it might make sense for a company to maintain a presence close to its key customers. However, extending applications and maintaining communication with branches over a traditional network with dedicated lines for voice and data can be cumbersome and expensive. To help reduce operational costs, SMBs have increasingly turned to converged IP network infrastructures, with IP telephony (VoIP) as a key component rather than establishing separate data and voice networks. VoIP is more than just toll avoidance and 800-number elimination; it’s also about better management, unified messaging (CTI), increased mobility and more efficient usage of a network infrastructure.

Here are some reasons SMBs might consider investing in converged network solutions:

• Simplified systems management
• Toll savings
• Savings on equipment/line charges
• Increased mobility
• Increased productivity from more efficient and secure communications, including customer relationship management solutions, database retrieval and remote access
• Lowered maintenance costs
• Increased ability to consolidate back-office functions and telephone systems into a unified structure

SMBs may approach converged network solutions with some trepidation due to a lack of understanding. However, the chances of a sale can be increased if the following potential concerns are addressed upfront:

• Quality-of-service issues, such as voice delays and echoes with voice communications
• Potential failure and network downtime, and its impact on customers and sales
• Bandwidth-management issues (meeting voice and data needs during peak capacity)
• Security concerns for a converged network
• Interoperability with existing hardware and software applications
• Investment protection and concerns of equipment obsolescence
• Potential associated expenses, including consultants and setup costs

To successfully sell an IP telephony solution, solution providers must build a solid business case explaining a clear line to ROI. The following are recommended steps toward building a value-added solution:

1. Opportunity assessment — Determine the cost savings, increased productivity and resulting ROI for the IP telephony initiative.
2. Infrastructure analysis — Assess the current network infrastructure’s ability to accommodate IP telephony. Clearly outline the required upgrades, additions and improvements that will be necessary to implement a converged IP network infrastructure.
3. Security assessment — Determine the security requirements for the converged network including IP telephony, remote access and mobility.
4. Process/organization assessment — Create a proposal based on the current business processes and structure to determine enhancement requirements for ROI and productivity.
5. Business Continuity Assessment — Assess the organization’s WAN and LAN infrastructure and its ability to perform network continuity and performance assessments for a converged IP network infrastructure.
6. Deployment Planning — Outline product selection, deployment scenarios and training requirements. Familiarize the company with the benefits of a converged IP network.

Solution providers that get into IP telephony are usually able to deploy either voice networks or data networks. Today, few solution providers are qualified to sell and implement both voice and data. Since SMB customers are putting business applications and voice onto a single network infrastructure, it is important that solution providers deploy solid, reliable solutions. An experienced IP and voice distributor can help solution providers gain knowledge about converged networks and IP telephony products, but more importantly help them understand the ideal network environments where a converged solution might be deployed.

A solution provider must have a good understanding of the different types of business scenarios where a converged IP solution might fit. SMBs usually can be categorized into one of the following groups, depending on size, complexity, buying behaviors and needs:

Standalone/Startup Business. These organizations are price-sensitive and seek a solution provider to guide them through technology decisions.

The decision-maker is burdened with a variety of responsibilities including technology selection. Typical of this group is a one-person business in its first year, operating in a SOHO market. Small health care providers and restaurants might fall into this category.

Typical needs: Incoming voice, Internet access and mobility. Application needs may vary based on business operations from basic to midlevel complexity. No network management is required.

SMB Multisite Business. These companies are similar to the stand-alone, but may have other locations, leveraging their brand name and presence. SMB multisites might include small retail chains.

Typical needs: Employee expertise sharing and other logistics, requiring significant multilocation voice traffic. SMB multisites typically require secure internet access (VPNs), secure remote access and mobility. There is high perceived need for network management, but only basic management features are actually needed.

Franchise Business. Franchise businesses consist of diverse sizes and locations. Local purchasing decisions are usually guided by policies and procedures from the franchisor. The decision- maker is likely to understand some aspects of a converged IP network. Companies that fit this profile may include restaurants, service companies, retail stores, hotels or service franchises.

Typical needs: Data networking to support ordering/logistics with franchise. Voice routing call management, telephony-CRM interaction and IVR for customer interactions (pizza chains are a good example). Internet access is required, but may be limited to centralized systems. Outbound service workers may require remote access to voice and data. As with the SMB multisite, there is generally a high perceived need for network management, but only basic requirements are actually needed.

Business with Same-Type Branch Locations. These businesses are characterized by a standardized provisioning of many branch locations. Existing sites may have separate voice and data networks. Priorities are conflicted between cost control and revenue generation. A company of this description may include national retail businesses with replicated locations.

Typical needs: Voice and data networking with a particular need for a remote access to centralized resources. There is high need for sophisticated network management, capable of providing standardized services to many branches.

Companies with Centralized, Multiple Locations. For centralized, multilocation businesses, resources are widely distributed and interoffice travel is common. This business model supports the centralized applications and capabilities. Companies that fall under this description may include enterprise, government agencies, manufacturing businesses or distributed professional services.

Typical needs: High-level voice and data networking for collaboration and customer support is very important. Security is key throughout the network infrastructure. Voice routing, mobility, call management, telephony, CRM interaction and IVR are usually required for employee and customer activities, as is secure remote access for business partners. Centralized management is a key criterion for managing the infrastructure. As the same type category, there is high need for comprehensive network management.

There is a strong business case for convergence solutions for practically every business need, and there has never been a better time for solution providers to make converged IP Networks the focus of their value propositions. The key is taking the time with customers to understand the business model and issues that they are facing, and then offering proven solutions to address their needs.