Resellers must wake up to convergence market

Resellers must wake up to convergence market

Profits are being lost as VARs ignore the benefits of convergence services and products

Too many resellers are losing out on consistent profit streams because they have not woken up to the real opportunities of convergence, according to internet service provider Timico.

Convergence has been a hot topic in the channel for some time and is expected to drive the expansion of services such as voice over IP (VoIP). However, Timico has suggested that while convergence is moving the market forward, resellers are failing to move with it.

Chris Tombs, chief executive of Timico, explained: “Resellers are not making the most of the opportunities convergence offers when they should be. They are not moving with the market and this is going to have an effect on their business.

“Rather than just selling a computer, resellers should be trying to sell the broadband and VoIP services that the end user will later use. This will keep revenue streams going and resellers will be in a better position as a result.”

It has been suggested that vendors must also do more to push the convergence message to the channel.

Keith Humphreys, managing consultant at analyst house EuroLAN, claimed manufacturers are failing to get their hands dirty and educate resellers on the required change in payment methods.

“The vendors are not educating their partners, which is affecting the opportunity for resellers to change,” Humphreys said. “They need to get more involved.

“Any extra money earned from convergence will be through annuity schemes. This will mean income being spread over two to three years, which is a different process and resellers need to realise this.”