Channeling VoIP sales

M5 Networks, a competitive service provider serving medium-sized companies with hosted voice over IP and advanced features, is finding success selling through IT consultants who provide data network support to small- to medium-sized businesses. Jeff Silbert, vice president of channel and alliances for M5 Networks, spoke with Editor-in-Chief Carol Wilson about M5's strategy.

On the largest of its two channel programs: We have about 200 IT consultants that co-sell with M5. What we found is that there are a whole bunch of IT consultants that know they need to have a voice strategy and don't. They realize that every new phone system is going to be IP-based and is going to ride on their network. They have three options: Do nothing, which essentially invites the competition in; try to get the expertise themselves to have a voice practice; or partner with M5.

On its newest channel strategy: Our national partnership program, which we launched in January, is focused on partners with the capability to sell voice as a service themselves. One great example is a company called All Covered, which is a nationwide IT consulting firm that has over 3000 clients nationwide in 18 locations. They weren't offering voice to their clients; now they will standardize offering voice to 18 locations using M5.

On the changing business model for IT consultants: They're moving from a break/fix model to more of a managed services model, and we fit nicely within the managed services model. They don't want to just be on call to fix network problems, they want to help businesses transform and drive business change. It's what sets them apart from other IT departments.

On future direct sales for M5: There still will be a direct sales component where we go after them direct and with partners. Typically we will see a lot of the larger deals. We are also looking to help the businesses that co-own with us to help them make the transition to managed services.