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The Business of Reselling IP Telephony

Nemertes Research, Aug 2008, Pages: 18


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In recent years IP telephony has become mainstream technology. Almost all organizations are doing something with IP telephony in the LAN, and voice over IP in the WAN. For most, migration to VOIP opens the door to numerous additional applications across the enterprise. IT leaders view the move as a stepping stone towards a full unified-communications strategy that allows voice, data and video communications to converge under a single network. The business of selling IPT is stronger than ever. Enterprises continue to replace end-of-life legacy systems. They also continue to expand their operations and increase the number of branch offices, which requires new telephony deployments.

This issue paper examines the business of selling IP-telephony products and services. Although the vendors do, in some cases, sell their products directly, the more common approach is through third parties, including distributors, system integrators and value-added resellers (VARs). Resellers have choices when it comes to which vendor products they sell. Of course comparing profit margins from equipment sales plays a role in the decision process, but margins from hardware sales are only part the equation. With such a huge enterprise interest in professional and managed services, resellers view IP-telephony sales as extended services opportunities, and depending on their offerings, they can be quite profitable.



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