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Spiffs, IT Jobs, SMB and CIO

TelePacific Talks | February 2013

Vendor Talks February 13 archive version Up To Date | February 2013
February 2013

If you give us a lead, we'll do the rest — and you earn big bucks up front or from residual commissions for new customers referred because this year we're offering additional spiffs on top of our already rewarding referral programs.

Our Residual Vendor Program pays a 4 percent monthly residual for the initial term of a new customer's contract. In addition, vendor partners who achieve $5,000 to $9,999 in monthly recurring revenue (MRC) and usage billings earn an extra 1 percent spiff (5% total) and an extra two percent spiff (6% total) after exceeding $10,000 in MRC and usage billings.

Vendor members opting for our Up Front Vendor Program receive a one-time upfront fee of 50 percent of MRC on 2-year deals and 75 percent on 3-year deals. Vendor partners in this program who reach $1,000 in commissionable customer revenue also earn an extra 10 percent commission. If they exceed $5,000, they are awarded and extra 20 percent commission. And $10,000 in commissionable revenue earns an extra 33 percent in commission.

TelePacific has extensive coverage throughout California and Nevada, and now Texas. That means one bill and one contact for multi-location customers in those markets, and greater referral commission potential for vendor partners.

IT Job Market Up,
IT Outsourcing Expected to Grow

The IT job market grew by 73,500 jobs in January and there were a total of 209,100 jobs added in the last three months. Employment especially is on the rise in healthcare IT and spending will reach $40 billion by the end of 2013, according to Janco Associates, a management consulting firm that tracks the IT market.

Much of the healthcare IT growth will come from investments in electronic health record (EHR) systems, mobile health applications and efforts to comply with new government standards. Boosted by increased spending on healthcare software—which is needed for the roll-out of EHR systems – the U.S. healthcare IT market is expected to grow at a rate of about 24 percent per year from 2012 to 2014.

Recent mergers and acquisitions in the healthcare IT market also point to growing private-sector interest in software, which will see sales grow at a rate of more than 30 percent annually from 2012 to 2014, Janco estimates.

Based on this data and interviews, Janco predicts there will be more churn in IT staffs as CIOs accelerate their move to more flexible staffing models. CIOs also are outsourcing more technical work, including managed IP services such as VoIP and VPNs. In addition, they are hiring more contractors for desktop and security services, and they are putting more applications such as remote backup in the cloud.

Based on these trends and remarks from CIOs that they are having trouble finding IT professionals with the right skills and/or can't afford them as employees, chances are good that vendor partners will have more opportunities in 2013.

SMB Tech Support:
Small Target, Big Market

A new report from Parks Associates suggests that demand for sophisticated tech support solutions is expanding as small and medium sized businesses adopt new and complex technologies, such as cloud services. The report examines related opportunities including help desks, virus protection, security, and hardware/software proactive monitoring, among others.

"Businesses of all sizes have been relentless in their adoption of new technologies," said Jim O'Neill, a research analyst at Parks Associates. "They have acquired new hardware and often allow the use of employees' own devices, creating a complex environment of support needs. Throw the cloud and its various services into the mix, as well as the need of SMBs to curtail their expenses, and you have a perfect storm of opportunity for companies that can provide 24/7 help desks, remote software and hardware support, and the occasional site visit."

O'Neill ads that the cloud services most popular with SMBs are collaboration, data backup, storage and CRM, saying that SMBs value migration to the cloud as a way to reduce software and hardware spending. However, integration can be complex, opening new opportunities for tech support providers that can address these issues. O'Neill concludes that tech support, especially for small businesses, is approaching a boom phase.


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