Bridging the gap between telecoms and tech

At Digital Wholesale Solutions, we have learned that there is a £10 billion market opportunity for our partners to take advantage of. That’s why we are encouraging IT and technology resellers to embrace convergence, partner with us and start selling communications products.

The convergence of voice and data brings a fantastic opportunity for IT resellers to move into the Channel, offering new solutions to their existing customer base. With operations moving into the Cloud, hardware-only suppliers are at risk and should be looking to new areas to generate additional revenue streams.

IT companies may be concerned that they do not have the knowledge or experience to compete with Channel resellers, but their familiarity with the technology arena affords them a base on which to build. For example, printers have evolved from standalone devices to network-based hardware, meaning suppliers are now experienced with connectivity solutions and Cloud operations.

Hardware resellers also work with their customers on a long-term basis, much like the telco industry. They don’t just sell the goods and leave them to it; they build ongoing relationships to generate monthly recurring revenue (MRR). It’s logical for these businesses to now find new recurring revenue sources from their existing base, instead of relying on the search for new customers.

According to Megabuyte, the average EBITDA margin of telco resellers is two times that of IT resellers. So, although it may be daunting for resellers to enter this new arena with little experience of communications products, there is a huge opportunity to be addressed, and with the support of DWS, they can succeed.

There is no denying that the continuing convergence of IT and telecoms is affecting the hardware industry. The advancements in Cloud-based devices allow users to send files to print from almost anywhere, whether that’s via email, Bluetooth or over a private network. Printers are now a huge part of any converged environment. By branching out into connectivity, resellers can offer a complete solution with both the printer and the network that it sits on.

Another great starting point is with simple mobile products. At DWS, we offer straightforward, SIM-only mobile propositions that are easy to buy and sell. The product is offered on an MRR basis and enables resellers to leverage their existing relationships with customers to offer complementary solutions.

From here, you can expand into enhanced connectivity, voice, IP telephony and Cloud solutions, all available from one supplier. The benefits are clear, you can boost your revenue and increase profits from your existing customers with new products that help differentiate you from competitors and increase the value of your business.

In addition, our One and Only Webstore, coming soon, offers everything from smartphones and laptops to printers and routers. It gives partners the opportunity to source hardware from multiple distributors at fantastic prices, through a single provider, on a single contract.

We want to get reseller businesses excited about this opportunity, provide the right products that work for them and their customers and then hold their hand throughout the process, from the first adoption through to a successful bill run. It’s a true partnership, we only succeed if they do, so it’s imperative that we offer the right products at the right price, while fully supporting partners in making it a real success.

If you are an IT or print reseller, ready to take the next step towards growing your business, get in touch with us today to start your journey to becoming a converged reseller with a feature-rich, future-proof portfolio.

This article has been adapted for our blog from a feature in Print and IT Reseller magazine. To read the full, original piece, please click here.

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