Which Way Will The Channel Go In 2017?

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6. The IT Channel Will Find A Way Into the Telecom Channel

With the rise of VoIP and cloud computing accelerating the convergence of IT resellers and agents, distribution and solution providers alike are looking to stake a claim in the telecom space.

Distributor ScanSource led the way in August with its purchase of master agent Intelisys for $83.6 million plus earn-outs to bolster recurring revenue telecom and cloud services among its traditional communications resellers.

ScanSource CEO Mike Baur described the $150 billion SMB telecom services market as "the biggest opportunity in years" for the channel, with just 10 percent of the telecom services market is served by the indirect channel today.

Getting into telecom services will allow the channel to dramatically boost its operating earnings, Baur said, since agents and master agents don't have to carry any inventory or accounts receivable.