“ Maintaining Profitability By Offering Maintenance” George Schaefer  Director of Sales Engineering TONE SOFTWARE – ReliaT...
Discussion Topics… <ul><li>Maintenance as a Business Strategy </li></ul><ul><li>The Convergence Evolution </li></ul><ul><l...
Maintenance as a Business Strategy <ul><li>Highly Competitive Landscape – M&A, Triple Play, Consolidation, etc.  </li></ul...
Maintenance as a Business Strategy <ul><li>Hardware / Equipment Highest Profit Margin </li></ul><ul><ul><li>Provides Limit...
<ul><li>Increase Profits and Expand Business Through Maintenance   </li></ul><ul><ul><li>Leverage Maintenance Revenue from...
Define Your Maintenance Offering <ul><li>Remotely Manage Client Premise Equipment </li></ul><ul><ul><li>Monitor Faults / H...
Position & Differentiate With Maintenance <ul><li>Full Service Provider vs. Just a Dealer or Reseller  </li></ul><ul><li>S...
Providers’ Convergence Evolution Voice Service Providers Must Expand to Data Voice Data Data Service Providers Must Expand...
Convergence - Both Friend and Foe <ul><li>Convergence Expands Maintenance Opportunities </li></ul><ul><ul><li>Maintenance ...
Convergence - Both Friend and Foe <ul><li>Convergence Presents Maintenance Challenges </li></ul><ul><ul><li>Multiple OEM E...
Convergence Creates Competitive Issues <ul><li>Maintenance for Complex Converged Environments Can Increase Overhead / Cost...
Maintenance Execution & Delivery Options <ul><li>Option 1: Resell Manufacturers’ OEM Maintenance </li></ul><ul><ul><li>UPS...
Maintenance Execution & Delivery Options <ul><li>Option 1: Resell Manufacturers’ OEM Maintenance </li></ul><ul><ul><li>DOW...
Maintenance Execution & Delivery Options <ul><li>Option 2: Utilize Third Party Solutions for Maintenance </li></ul><ul><ul...
Maintenance Execution & Delivery Options <ul><li>Option 2: Utilize Third Party Solutions for Maintenance </li></ul><ul><ul...
<ul><li>Third Party Solutions - Multiple Delivery Options </li></ul>Harnessing the Right Technologies SaaS NOC Installed <...
Choose Technology to Drive Maintenance <ul><li>Solution Provides Flexibility to Pursue & Support Clients </li></ul><ul><ul...
Technology Check List - What to Look For  <ul><li>Solution Performs Non-Intrusive Real-Time Monitoring </li></ul><ul><ul><...
Technology Checklist – What to Look For  <ul><li>Solution Ensures Client SLAs Are Met </li></ul><ul><ul><li>Reveals SLAs a...
Technology Checklist – What to Look For <ul><li>Solution Provides Automated Service Reporting </li></ul><ul><ul><li>Docume...
Maintain Profitability Through Maintenance  <ul><li>Maintenance Builds and Sustains Your Value to Clients:  </li></ul><ul>...
About TONE SOFTWARE <ul><li>Strategic Communications Technology Developer </li></ul><ul><ul><li>Experts in Multi-Vendor, C...
<ul><ul><li>Stop By Following The Session and Pick Up Your FREE 1GB USB Drive with our WHITE PAPER:   </li></ul></ul><ul><...
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Schaefer George

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Schaefer George

  1. 1. “ Maintaining Profitability By Offering Maintenance” George Schaefer Director of Sales Engineering TONE SOFTWARE – ReliaTel Team March 18, 2008
  2. 2. Discussion Topics… <ul><li>Maintenance as a Business Strategy </li></ul><ul><li>The Convergence Evolution </li></ul><ul><li>Maintenance Delivery Options </li></ul><ul><li>Harnessing the Right Technologies </li></ul>
  3. 3. Maintenance as a Business Strategy <ul><li>Highly Competitive Landscape – M&A, Triple Play, Consolidation, etc. </li></ul><ul><li>MSPs Must Find Ways to Offer Newer, Higher-Value Services to their Clients… </li></ul><ul><li>“… .. Service Providers in Mature Markets Must Optimize the Performance of their Business Models to Mitigate Declining Traditional Services Revenue and Profit Margins…” </li></ul><ul><li>- Gartner Research </li></ul>
  4. 4. Maintenance as a Business Strategy <ul><li>Hardware / Equipment Highest Profit Margin </li></ul><ul><ul><li>Provides Limited Residual Income </li></ul></ul><ul><ul><li>Mandates Constant Customer Churn </li></ul></ul><ul><li>Perpetual Revenue Stream Needed </li></ul><ul><ul><li>Annuity Business Beyond Initial Sale / Project </li></ul></ul><ul><li>Customer Retention Strategy Needed </li></ul><ul><ul><li>Ensure a Continuing Relationship </li></ul></ul><ul><ul><li>Ensure Continuing Revenue </li></ul></ul>
  5. 5. <ul><li>Increase Profits and Expand Business Through Maintenance </li></ul><ul><ul><li>Leverage Maintenance Revenue from Existing Clients </li></ul></ul><ul><ul><li>Increase Value of each New Sales Opportunity to New Clients </li></ul></ul><ul><ul><li>Maximize Profit Margin on Every Maintenance Contract Sold </li></ul></ul><ul><ul><li>Create Annuity Revenue Stream to Fund Stable Business Growth </li></ul></ul><ul><ul><li>Increase Client Retention and Build Long Term Relationships </li></ul></ul><ul><ul><li>Increase Follow-on Sales Opportunities </li></ul></ul>Maintenance as a Business Strategy
  6. 6. Define Your Maintenance Offering <ul><li>Remotely Manage Client Premise Equipment </li></ul><ul><ul><li>Monitor Faults / Hardware Health, Manage Alarms </li></ul></ul><ul><ul><li>Remote Alarm Diagnostics and Resolution </li></ul></ul><ul><li>Remotely Manage Client Voice Service Levels </li></ul><ul><ul><li>Monitor Performance / Capacity, Threshold Alarming </li></ul></ul><ul><ul><li>Remote Performance Diagnostics </li></ul></ul><ul><li>Remotely Manage Client Voice / Call Quality </li></ul><ul><ul><li>Call Metric Analysis and Reporting </li></ul></ul><ul><ul><li>Traffic Analysis and Reporting </li></ul></ul><ul><li>Ongoing Capacity Analysis and Recommendations </li></ul>
  7. 7. Position & Differentiate With Maintenance <ul><li>Full Service Provider vs. Just a Dealer or Reseller </li></ul><ul><li>Standardize Maintenance into All Sales Offerings to Position You as a “Value-Add” Provider </li></ul><ul><li>Target Broader Maintenance Market by Selling Through the Convergence Barrier with Multi-Vendor Voice & Data Support </li></ul><ul><li>Offer Tiered & Premium Service Plans </li></ul><ul><ul><li>24x7, 8x5, Response Windows, SLAs </li></ul></ul><ul><ul><li>“ Best Fit” Clients’ Needs </li></ul></ul><ul><li>Implement “Ever-green” Clauses to Stimulate Long Term Commitments </li></ul>
  8. 8. Providers’ Convergence Evolution Voice Service Providers Must Expand to Data Voice Data Data Service Providers Must Expand to Voice CONVERGENCE “ By 2010, 95% of Enterprises will commingle voice and data services…” - Gartner
  9. 9. Convergence - Both Friend and Foe <ul><li>Convergence Expands Maintenance Opportunities </li></ul><ul><ul><li>Maintenance Scope Expands as Clients Adopt Technologies: </li></ul></ul><ul><ul><ul><li>VoIP, IP Telephony </li></ul></ul></ul><ul><ul><ul><li>Collaboration, Mobility </li></ul></ul></ul><ul><ul><ul><li>Unified Communications, etc. </li></ul></ul></ul><ul><ul><li>Further Penetrate Clients’ Environment Across: </li></ul></ul><ul><ul><ul><li>Voice Communications </li></ul></ul></ul><ul><ul><ul><li>IT Operations </li></ul></ul></ul><ul><ul><ul><li>Network Infrastructure </li></ul></ul></ul><ul><ul><li>Grow Sales / Maintenance Value of Every Client </li></ul></ul>
  10. 10. Convergence - Both Friend and Foe <ul><li>Convergence Presents Maintenance Challenges </li></ul><ul><ul><li>Multiple OEM Equipment – Multi-Vendor Environments </li></ul></ul><ul><ul><li>Diverse Voice Systems – Harder to Manage </li></ul></ul><ul><ul><li>Varied Metrics, KPIs </li></ul></ul><ul><ul><li>Broader Deliverables to Clients </li></ul></ul><ul><ul><ul><li>Higher Service Level Expectations / Commitments </li></ul></ul></ul><ul><ul><ul><li>Communications Network Performance Becomes “Mission Critical” </li></ul></ul></ul><ul><ul><ul><li>Voice Call Quality Assurance Mandatory </li></ul></ul></ul>
  11. 11. Convergence Creates Competitive Issues <ul><li>Maintenance for Complex Converged Environments Can Increase Overhead / Cost Per Client </li></ul><ul><ul><li>Multi-Vendor Converged Environments Can Require Multiple NOC Management Tools </li></ul></ul><ul><ul><li>Additional Staff Required to Maintain Complex Converged Networks </li></ul></ul><ul><ul><li>Greater Staff Expertise Required to Meet Clients’ Quality and SLA Expectations </li></ul></ul>What are the Options?
  12. 12. Maintenance Execution & Delivery Options <ul><li>Option 1: Resell Manufacturers’ OEM Maintenance </li></ul><ul><ul><li>UPSIDES: </li></ul></ul><ul><ul><ul><li>Quick, Bundled Pass Through Sale </li></ul></ul></ul><ul><ul><ul><li>Range Beyond Initial Equip Warranty Period </li></ul></ul></ul><ul><ul><ul><li>Quick Incremental Increase in Revenue </li></ul></ul></ul><ul><ul><ul><li>Little to No Up Front Investment </li></ul></ul></ul><ul><ul><ul><li>Little Ongoing Overhead </li></ul></ul></ul><ul><ul><ul><li>No NOC Investment Required </li></ul></ul></ul>
  13. 13. Maintenance Execution & Delivery Options <ul><li>Option 1: Resell Manufacturers’ OEM Maintenance </li></ul><ul><ul><li>DOWNSIDES: </li></ul></ul><ul><ul><ul><li>Limited Profit Margin – Typically 8% - 10% </li></ul></ul></ul><ul><ul><ul><li>Typically Limited to Manufacturers’ Equipment </li></ul></ul></ul><ul><ul><ul><li>Does Not Support Diverse Converged Environments </li></ul></ul></ul><ul><ul><ul><li>Limited “Value Add” for Provider </li></ul></ul></ul><ul><ul><ul><li>Less Flexibility in Pursuing Diverse Clients </li></ul></ul></ul><ul><ul><ul><li>Does Not Build Long Term Relationship with Client </li></ul></ul></ul>
  14. 14. Maintenance Execution & Delivery Options <ul><li>Option 2: Utilize Third Party Solutions for Maintenance </li></ul><ul><ul><li>UPSIDES: </li></ul></ul><ul><ul><ul><li>Higher Profit Margin on Each Maintenance Client </li></ul></ul></ul><ul><ul><ul><li>Greater “Value Add” as Full Service Provider </li></ul></ul></ul><ul><ul><ul><li>Facilitates “Up Sell” for Convergence Support </li></ul></ul></ul><ul><ul><ul><li>Provides Immediate “NOC” Status & Credibility </li></ul></ul></ul><ul><ul><ul><li>More Flexibility to Pursue Diverse Clients </li></ul></ul></ul><ul><ul><ul><li>Promotes Long Term Relationship with Client </li></ul></ul></ul>
  15. 15. Maintenance Execution & Delivery Options <ul><li>Option 2: Utilize Third Party Solutions for Maintenance </li></ul><ul><ul><li>DOWNSIDES: </li></ul></ul><ul><ul><ul><li>Greater Up Front Investment </li></ul></ul></ul><ul><ul><ul><li>Longer ROI Cycle </li></ul></ul></ul><ul><ul><ul><li>Initial Increase in Overhead – NOC and Staff </li></ul></ul></ul>
  16. 16. <ul><li>Third Party Solutions - Multiple Delivery Options </li></ul>Harnessing the Right Technologies SaaS NOC Installed <ul><li>Hosted Solution </li></ul><ul><li>Quick Start </li></ul><ul><li>Low Up Front Investment </li></ul><ul><li>Fees Adapt to Fluctuations in Client Base </li></ul><ul><li>In House Solution </li></ul><ul><li>Branded for Maximum Value </li></ul><ul><li>Expand Without Incremental Costs </li></ul><ul><li>Best Overall ROI </li></ul>
  17. 17. Choose Technology to Drive Maintenance <ul><li>Solution Provides Flexibility to Pursue & Support Clients </li></ul><ul><ul><li>Manages all TDM, IP based Equipment </li></ul></ul><ul><ul><li>Provides Multi-Vendor, Multi-Platform Support </li></ul></ul><ul><ul><li>Supports Current and Emerging Converged Technologies </li></ul></ul><ul><ul><li>Provides “Branded” Solution Portal to Showcase Provider </li></ul></ul><ul><ul><li>Integrates with Other OSS – NOC Tools </li></ul></ul><ul><ul><li>Provides a Common Solution Across Entire Client Base </li></ul></ul><ul><ul><ul><li>Contains Overhead Costs </li></ul></ul></ul><ul><ul><ul><li>Stabilizes Staffing Levels </li></ul></ul></ul><ul><ul><ul><li>Baselines Staffing Expertise </li></ul></ul></ul>
  18. 18. Technology Check List - What to Look For <ul><li>Solution Performs Non-Intrusive Real-Time Monitoring </li></ul><ul><ul><li>Monitors Health, Faults, Performance </li></ul></ul><ul><ul><li>Analyzes Quality Metrics, Capacity Metrics </li></ul></ul><ul><ul><li>Provides Real-Time Visibility of Client Environment </li></ul></ul><ul><ul><ul><li>Voice, Data, Network, Circuits, Adjunct Systems </li></ul></ul></ul><ul><ul><li>Flexible Connectivity / Communication with Client Premise Equipment </li></ul></ul><ul><ul><li>Requires NO Probes, Agents, or “Black Boxes” </li></ul></ul><ul><ul><li>Scalable to Grow with Client Base </li></ul></ul>
  19. 19. Technology Checklist – What to Look For <ul><li>Solution Ensures Client SLAs Are Met </li></ul><ul><ul><li>Reveals SLAs at Risk in Real-Time </li></ul></ul><ul><ul><li>Enables Provider to Prioritize Resources to Meet Highest Value SLA Commitments </li></ul></ul><ul><ul><li>Performs Flexible Notification and Escalation </li></ul></ul><ul><ul><li>Provides “Cut Through” Remote Access for Diagnostics </li></ul></ul><ul><ul><li>Reveals Traffic and Capacity Thresholds </li></ul></ul><ul><ul><ul><li>Triggers Notification Based on Traffic and Capacity KPIs </li></ul></ul></ul>
  20. 20. Technology Checklist – What to Look For <ul><li>Solution Provides Automated Service Reporting </li></ul><ul><ul><li>Documents and Validates Service Value </li></ul></ul><ul><ul><li>Showcases SLA and MTTR (mean time to repair) Statistics </li></ul></ul><ul><ul><li>Reveals Trends & Facilitates Client Operational Improvements </li></ul></ul><ul><ul><li>Identifies Capacity Issues and Helps Justify New Equipment Sales & Upgrades </li></ul></ul>
  21. 21. Maintain Profitability Through Maintenance <ul><li>Maintenance Builds and Sustains Your Value to Clients: </li></ul><ul><ul><li>Increases Your Credibility and “Expert” Status </li></ul></ul><ul><ul><li>Increases Client Retention </li></ul></ul><ul><ul><li>Promotes Long Term Relationships </li></ul></ul><ul><ul><li>Increases Follow-On Sales Opportunities </li></ul></ul><ul><ul><li>Provides “Viral Marketing” Network for Your Business </li></ul></ul>
  22. 22. About TONE SOFTWARE <ul><li>Strategic Communications Technology Developer </li></ul><ul><ul><li>Experts in Multi-Vendor, Converged Infrastructure Management Technology – ReliaTel Solution </li></ul></ul><ul><ul><li>30 Years Industry Experience and Success </li></ul></ul><ul><ul><li>World Wide Client Base </li></ul></ul><ul><ul><li>Customer Focus, Premier Service & Support </li></ul></ul><ul><li>ReliaTel Technology Partner for Service Providers </li></ul>
  23. 23. <ul><ul><li>Stop By Following The Session and Pick Up Your FREE 1GB USB Drive with our WHITE PAPER: </li></ul></ul><ul><ul><li>“ Managing Convergence: How MSPs Can Increase Profits and Drive New Business” </li></ul></ul><ul><ul><li>Visit us on the Web: </li></ul></ul><ul><ul><li>www.reliatelsolutions.com </li></ul></ul>THANK YOU! <ul><ul><li>“ Managing Convergence: How MSPs Can Increase Profits and Drive New Business” </li></ul></ul>

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