ChannelVision Playbook V6

for verticals (automotive, healthcare, smart cities, manufacturing) is likely to create more opportunities for specialists that already sell software solutions into those verticals. It might also be safe to predict that channel partners will sell way more “connectivity” services than “TaaS” ser- vices, to enterprise customers using IoT services, for several reasons. The TaaS market will be highly fragmented, and much of it will logically be sold by verti- cal market specialists, not “horizontal” communications specialists. While the value of IoT apps will be higher than the value of IoT communica- tions services, almost all the “apps and solutions” business will be oriented to specific industrial or enterprise buyers. Most apps, in other words, will be orient- ed to verticals, tailored to solve problems specific to particular industry categories. Conversely, IoT communications are classically horizontal: akin to special access or Internet access services, which channel partners are well used to selling. Assume that by 2020 or so, global enterprises are spending about $250 billion on IoT products (hardware, software, services, connectivity). As- sume connectivity revenue is 15 per- cent of the global total. That implies global IoT communications revenue of about $38 billion. Assume about 25 percent of that revenue is earned in the United States. That implies U.S. connectivity revenue of about $9.5 billion. Further assume that 55 percent of that communications spending is by enterprises, not consumers, implying enterprise spending of about $5.3 bil- lion. If 10 percent of IoT communica- tions sales to enterprises are made by channel partners, that suggests an annual market of about $530 million in connectivity sales. Present-day enterprise informa- tion technology spending estimates by CompTIA suggest telecom services are 30 percent of IT spending. So if U.S enterprises represent 30 percent of total global enterprise IoT spending, and total spending is $250 bil- lion, then U.S. enterprises might spend $75 billion on IoT, by about 2020. If 30 percent of that amount is com- munications spending, then enterprise IoT communications spending might be $22.5 billion. If 10 percent of that amount is earned by channel part- ners, then IoT-driven communications spending by enterprises could reach $2.3 billion. So it is possible that, by 2020, be- tween $530 million to $2.3 billion could be earned by channel partners selling IoT communications services. That is likely going to dwarf TaaS sales volume booked by telecom chan- nel partners. o one stream networks OneStream Networks • 500 Lee Road • Rochester NY 14606 800-869-0315 • OneStream Networks offers a single-source solution to the evolving communications needs of multi-site and multi-national enterprise customers. Global Voice Services From single site local deployments to international multisite deployments, OneStreamNetworks has you covered with TrueGlobal service coverage and certified install staff. Scale & Resiliency We provide geo-redundant global voice, data and security services in over 200 countries and 8,000 cities. Reliable and Disaster Proof Zero-Outage Global Architecture Fully Meshed, High-Availability Technologies Mirrored Technology Customer SIP trunks peer with multiple POPs for 100% fail-advance Extraordinary BC capability Global Presence | Global Origination | Global Termination | Global Localization | Global Deployment 16 THE CHANNEL MANAGER’S PLAYBOOK