Survey: VARs and Systems Integrators Sway Carrier Service Sales

Solutions providers — otherwise known as data VARs and systems integrators — are selling complex solutions along with carrier services in surprising numbers, according to a new survey conducted earlier this year by Level 3 Communications Inc. The poll found 89 percent of solutions providers surveyed provide carrier services.

The survey, which was conducted by the carrier between Feb. 21 and March 31, 2008, solicited responses from 2,000 solutions providers focused on WAN/LAN solutions. More than 200 surveys were completed.

A Majority of VARs and Systems Integrators Sell Carrier Services

Of the respondents, more than half (54 percent) sell carrier services directly and another 35 percent refer the carrier services piece to other providers — a close split between agents and direct carrier representatives (see Exhibit 1).

Craig Schlagbaum, vice president of indirect channels for Level 3, was surprised to learn so many VARs and systems integrators already are selling carrier services. However, he said, the big opportunity revealed by the research belongs to the traditional telephony channel. He said savvy agents can wrest some of the referral business away from the incumbent carriers by creating partnerships with solutions providers to be their outsourced carrier groups. Solutions providers are open to such arrangements primarily because incumbents often are competing with them on the hardware sale, Schlagbaum said.