RAM | Reseller Advocate Magazine: Issue 44

By Beatrice Mulzer

Recently, I spent a couple of days at a bed and breakfast lodge in the Berkshires, MA. If you have never been there, this is one location in the U.S. where you can just sort of lose yourself in the gargantuan woods along the Appalachian Trail and its pristine waterfalls and creeks. To say the least, the county is very rural and the foothills are scattered with little towns consisting of turn-of-the-century majestic mansions. Nevertheless, prior to my trip, I phoned the lodge inquiring about Internet connectivity. Being a frequent traveler, I have come to expect broadband service even on the last fleck of earth, especially in the U.S.

The information I received was that the lodge has Internet access and is in the process of getting wireless service, which is sort of there but not installed yet. Hmmm. So off I went armed with my laptop and Pocket PC, because I knew my editors would expect me to check in by email and generally be connected. Upon arriving at the lodge, I again asked about the type of Internet access offered and it was confirmed by the staff that there was only dial-up on the property. However, there was an Internet café only 12 miles down the road in another town. On top of everything else, my HP 6315 cell phone/PDA hybrid with Wi-Fi, GSM, and Bluetooth capabilities had lost reception starting about an hour before getting to the lodge. There went my last resort: GPRS and mobile access to the rest of the world. I was disconnected!

Not to dwell on this pity story, but it demonstrates just how dependant we have become on available technology, especially if one has a busy travel schedule. This does not just affect me but the entire SMB market, as well.

To define SMB, some companies consider SMBs to be 1,500 employees or less, while others say 500 employees or less or define SMB based on revenue from $10 million or less. Enough said. There is no fine line here. What I am driving at, though, is that a paradigm shift has already begun in the way SMBs operate, from family-owned stores to Fortune 500 companies, not just based on general technological advancements, but specifically with wireless technologies. Heck, read about the research study (www.blipsystems.com/Default.asp?ID=293) in Denmark where cows are outfitted with Bluetooth-enabled sensors measuring each cow's pulse and body temperature. The sensor broadcasts health state information to the farmer as an early illness detection system. Bet you'll never look at that milk carton the same way again.

OK, Bluetooth-enabled cows aside, right about now you are asking, "What does this have to do with my business?" Simply stated, not since the early days of the Internet have there been so many revenue-generating opportunities for solution providers and resellers in the SMB market.

Originally considered a convenience, wireless has made the inroad to SMB on the fast track. SMBs are realizing that wireless improves productivity, enabling employees to work just about anytime from anywhere. An IDC study undertaken in Europe found that SMBs experienced a 22% profit increase by adopting Internet technology solutions, mainly through the use of mobile access technologies like mobile phones, wireless LANs, and laptops. SMB wireless technology trends are currently so hot that companies known to be enterprise players are getting into the market.

Writing a proposal and telling your client that there will be a 22% productivity increase if they purchase a wireless solution will, most of the time, not be exactly measurable and may not tell a compelling enough story until you help them visualize the actual benefits gained. For example, in a healthcare office, you could paint the picture of the doctor using a wireless Tablet PC, instantly looking up MRI or CAT scan images and entering information right into the patient's record while visiting with the patient. The patient's new medication information would be immediately available to nurses or staff that then can forward prescriptions to the pharmacy. By the time the patient arrives at the pharmacy, the prescription will already be filled and ready for pick-up. Selling to the real estate sector? Ask the real estate broker how much business would increase if his agents were able to receive email notification just about anywhere using their Pocket PCs. It has been estimated that about 75% of home buyers now use the Internet for researching the market. For a real estate agent to be able to respond immediately to an email inquiry of a prospective buyer is a distinct competitive advantage. The agent could be in a grocery store, restaurant, or showing a house and would be able to respond from his or her Tablet PC or Pocket PC. Other benefits would include having the ability to pull data on other homes for comparison during the showing of a house and checking public records. This can help close a deal instantly.

The corporate world will surely gain the most benefit from wireless connectivity between buildings, thus reducing cabling cost and gaining a more productive workforce. A study conducted by NOP World Technology for Cisco Systems in 2003 revealed that wireless LAN users stay connected more than 3.5 hours to the LAN per day. Combined with other mobility features, there was a productivity increase of 27 percent.

In reality, most small businesses still believe that wireless technology is just a convenience item and too expensive to implement to be cost effective. That does not hold true, and it is up to the VAR to educate the customer. Extending network access by mobilizing the business is a substantial increase in employee productivity for SMB. Employees that are frequent travelers, outside sales, or branch office employees enjoy the most benefit from mobile network access 24 hours a day.

Having a wireless high-speed Internet connection alone allows for many benefits while traveling. Wireless has allowed me to remotely manage servers at client sites and offer assistance on the client desktop while I was stuck in the airport waiting on a delayed flight. I remember one particular situation where we sat on the tarmac for four hours before being able to take off. During that time, I was able to send out invoices, confirm meeting schedules, book a flight, car, and hotel for the next trip, and patch a server. It doesn't matter whether I am in San Francisco, New York, or anywhere else in the world. Having instant access to my email via PDA has cut down the time I spend on my desk answering emails and keeps me in the loop while on the go. With the combination of a wireless laptop, dead airport time, and remote server management capabilities, my clients are not even aware of when I am out of town (except for the airport announcements in the background) as long as I respond within a decent time frame.

An IDC study undertaken in Europe found that SMBs experienced a 22% profit increase by adopting Internet technology solutions, mainly through the use of mobile access technology like mobile phones, wireless LANs, and laptops.

Carriers have already slowed the expansion of the fiber network in anticipation of new wireless technologies. The demand for mobility is driving industry leaders to develop new wireless standards that will extend and expand the wireless reach on a global level. New developments are focusing on products and services that will enable wireless communications on a wide scale. There is talk about using overlapping technologies such as Wi-Fi, WiMax, 3G, and UWB (Ultra-Wideband) to coexist and offer users the best choice for the best possible connection. Intel has a global vision of Wi-Fi hotspots in all public places, homes, and businesses, enabling users to stay connected as they move about their daily lives. Developers are talking about integrating multiple wireless technologies into mobile platforms, maximizing the ability for users to stay connected.

Therefore, regardless of what size your business is and what size customer you market to, it makes sense to form a partnership with one of the industry goliaths. Staying up to date with the latest technologies and trends, making business decisions on what technology or manufacturer to represent, and being proficient in implementing and servicing technology solutions will be much easier this way. This will produce what I call a win/win/win situation, because the manufacturer, reseller, and end user all win. The manufacturer wins by being able to strategically expand into specific geographic areas by offering partnerships to VARs, expanding its sales force and distribution channel at a low cost. The VAR wins by being able to take advantage of partner programs that offer training and shorten the learning curve on a product, build knowledge, have access to resources that would usually be hard to come by, and allow the VAR to expand into key markets and enhance credibility. Start-ups and struggling businesses in particular gain instant credibility benefits through carrying the larger known company brand name. The customer wins because they will not only have a brand name company product but also certified support and service. Just look at companies like Cisco. Cisco has been making a concerted effort in the last three years to change its partner program, moving into the reseller space and helping to make it a win/win for partners. Cisco has become very serious about the SMB market and empowering channel partners to deliver profitable solutions. Edison Peres, vice president of advanced and core technologies, understands that SPs (solution providers) and VARs are often relied upon as trusted business advisors to SMBs. Peres states that "customers want the business benefits that network technology can give them but often lack the expertise and resources to successfully implement networking solutions."

Cisco will be introducing about 30 to 35 products this year from security to IP communication to wireless LANs that are specially designed for the cost-conscious SMB market. Cisco promises higher margins and additional resources to partners that invest in Cisco's advanced technologies. There are also several channel incentive programs. For instance the Value Incentive Program gives 20% rebates on voice SKUs and 10% rebates on security SKUs. The Solution Incentive Program goes a step further, encouraging and supporting channel partners to develop applications that can be packaged or sold in conjunction with Cisco equipment to provide solutions to business problems. There are also the Registered Partner, SMB Select Partner, Specialized Partner and Certified Partner programs. In return, Cisco is asking partners to register and complete a sales associate learning module and exam. The strategy is clear.Cisco doesn't want its partners just to be box pushers but true value-added resellers. Another program that also deserves mention is the SMB Icebreaker Program. It allows partners to receive considerable discounts on specific Cisco switches when selling to non-Cisco customers with 250 employees or below.

Regardless of which programs you engage into with Cisco, you can take advantage of varied training opportunities, either free or discounted training through its partner E-Learning Connection, as well as programs and tools to help drive partner profitability. Please check the Cisco partner programs out at www.cisco.com/en/US/partners/pr11/index.shtml.

Another big player getting into the SMB market is Intel with its Small Business Solutions Technology Campaign. At the Intel campaign portal, you will find all the tools and links to start your own campaign, from online training videos to ready-made brochures to electronic evaluation tools like the ROI calculator. Intel offers an entire campaign library full of pre-sales, marketing and customer assessment materials, customer solution brochures, and tips to close the sale. You can access this information at www.intel.com/cd/channel/reseller/asmo-na/eng/sales_marketing/marketing_tools/sb_portal/camp_start/index.htm. On the same site, you will find a link to Technologies and Trends, where wireless and mobility is on the top of the list. Intel knows that SMBs are the largest growing sector of global business, and, being a VAR, you can't miss taking advantage of all the resources offered to you by companies like Intel, Cisco, and many others.

It is hard enough to stay competitive locally and expand your business. One way you can ensure staying on top of global trends that are already hitting home is by using all of the tools and resources that are made available to you. Not in the wireless market yet and not sure how to expand your services to local SMBs? Visit the Intel and Cisco sites and read the case studies. There are endless examples of wireless benefits throughout different industries. You can use those when you make your sales call to the wholesaler, government agency, automotive, or other industry. Getting into the market has never been easier, so what is stopping you?

And what happened in the Berkshires? I made my daily pilgrimage to the Internet café twice to download email and communicate with my evil editors and pesky customers. Then, the morning of departure, I booted my laptop at the lodge breakfast room (with Wi-Fi enabled) to take some notes and found a strong, unsecured wireless network signal. Now, very curious about the information previously given, I sought out the owner and engaged to get to the bottom of this. The owner told me that the live-in hired hand on the property had a broadband connection and obviously his very own wireless router separate from official lodge business. I also found out that the lodge had offered access to guests before, but there had been too many problems with downloads and viruses that effected the network, including their reservation system. The lodge had been through several computer consultants/resellers in the surrounding area, but none of them apparently had the know-how to set up a proper DMZ or fix the disparate network setup. With all the issues, the lodge owner at this point decided not to offer the wireless service. Eventually this may cause him to lose business. If I would have made the reservations myself, I would not have stayed there just based on it not having Internet access.

This also brings me right back to my mantra of training and customer service. The lodge owner needs to find a consultant/reseller that has the proper technical and sales training, understands the big picture, and can see the revenue potential. This lodge may be only a one-time market for a hardware-only reseller, but offers a great opportunity for a long term client to the VAR. Since the lodge consists of eight separate buildings and meeting facilities spread across the vast property, all buildings could be outfitted and maintained with 21st century wireless connectivity while retaining their original 1776 stage coach charm. Someday, the owner will find the right VAR, and whomever that may be will get to stake the first wireless technology claim in that neck of the woods.