HiTech Solutions Case Study
For IT consulting firm, HiTech Solutions, the requirements for a PBX vendor were simple: great technology, strong profit margins and a channel program that understood its New Zealand roots. The search led HiTech to trixbox Pro from Fonality and a distribution relationship that has altered its business model and allowed it to meet some aggressive profit run rates.
HiTech Solutions is an Auckland, New Zealand-based IT consulting firm that targets SMBs and has traditionally focused its business on five key market segments including network solutions, security consultancy, hosting solutions, outsourcing support and VoIP solutions. For two years, the company sold Cisco, Avaya and Nortel phone systems, but opened its eyes to open source technology when it noticed a shift in customer requirements. "The customers were demanding more presence management and Outlook integration. We lost deals because the products we sold were not able to function in the way our customers wanted them to. We needed to find a different, more flexible solution, and trixbox Pro provided us with a powerful PBX product at a terrific price point," said Danny Tomsett, general manager at HiTech Solutions.
Needed: Flexibility with strong profit margins
Tomsett's search for flexibility initially led him to Asterisk, where he immediately recognized the revenue potential of working with open source technology. "Asterisk had great margin potential, but it's ugly, difficult to work with and does not have a good service model. I didn't want to move from one set of products that couldn't fit the customers' need to a different one that was difficult to work with."
Upon further investigation, Tomsett was introduced to trixbox Pro. He was instantly impressed with the hybrid-hosted technology, which provides both the reliability of an on-premise solution and the flexibility of a hosted model.
"The telephony market is extremely competitive," said Tomsett. "trixbox Pro provided us with exactly what we were looking for – its hybrid hosted model is unique and offers great value for our customers. The product is powerful, flexible and gives our customers a corporate-grade PBX at a small business price."
Tomsett also saw tremendous value in the lifetime licensing program offered by Fonality. "It's amazing – with trixbox Pro our customers will never have an old phone system again. A program like this will lead new customers to us, which is a huge benefit from any channel program."
A smart channel program
Once Tomsett found trixbox Pro and examined the business benefits of selling the product offered by Fonality, he opted to officially become a member of the company's channel program. In fact, Hi-Tech Solutions has become the value added distributor for the New Zealand market.
"Fonality is really smart about its channel program and understands that each country is different – they worked closely with us to develop a model that worked in the New Zealand market," said Tomsett. "Fonality's channel managers have deep product knowledge and are communicative, and the executive staff doesn't hide behind their desks — they work!"
Working with a vendor that took the initiative to understand the sales process in his country was particularly important to Tomsett. "New Zealand is a small market of about 4.5 million people," he said. "Fonality channel executives spent a lot of time with us to ensure we had a good pricing model that would work well in our country." In fact, HiTech is already reaping benefits, having created its own reseller channel and program for selling trixbox Pro within New Zealand.
A trixbox Pro Future
With the success Tomsett has seen since coming on board as a trixbox Pro value added distributor, several important HiTech business decisions have been made.
"trixbox Pro is a fantastic product with huge revenue opportunities," Tomsett said. "We have dropped Cisco, Avaya and Nortel and completely changed our business model so we can focus exclusively on trixbox Pro."
The company has committed more than $100,000 into converting its core business to trixbox Pro sales, and has even signed a lease on a new building due to the revenue projections it anticipates from selling the product. And those projections look great. HiTech is shooting to have 10,000 users in New Zealand in the next five years and is already operating in excess of its desired profit run rate of $130,000 each month.
"New Zealand is a wonderful market full of SMBs," said Tomsett. "Because Fonality has worked so hard with us to ensure our success selling trixbox Pro, we are certain we can bring true business value and sophisticated phone technology to our country's entrepreneurs."