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How Can a Communications Consultant Triple Revenue?
CEO Reveals "PAETEC Power" By Dan Baldwin, 9/3/9 At a keynote speech at this week's ITEXPO, PAETEC CEO Arunas Chesonis shared how PAETEC telecom agents and channel partners can "more than triple" their future revenues by getting into the power consulting business. While many business utility consultants have long mixed telecom and power, PAETEC's entry into the arena gives the whole idea instant and big time credibility. Click the video below to hear what Arunas had to day about the whole idea in front of a packed ITEXPO audience excited to hear the PAETEC CEO's keynote address. While I've hear a lot of telecom agents, consultants and channel partners give their reasons for getting into the power consulting business, Arunas' thoughts on the matter are clear, succinct and will no doubt motivate an active response in both communications consultant as well as multi-location business owners and managers struggling to real in energy costs as well as communications costs.
For more information about how you can get involved in PAETEC's power program, contact your PAETEC channel manager or click here. Keynote Speech Video Notes: Reinventing Energy & Communications - How can a communications company more than triple its revenue? - How can a communications service provider fight "unfair"? - A business that spends $10,000 per month on network services might spend up to $50,000 per month on energy - PAETEC's 1998 Prediction: Within 10 years the majority of telecom purchasing decisions will be made by the office of the CIO or "chief information officer". (Telecom companies are now selling data center, network security, information storage and software services and solutions) - PAETEC's 2009 Prediction: Within 10 years the majority of energy decisions will be made the the office of the CIO. (Current backup power & generator decisions. CIO data centers sometimes use most of the energy. Charged with building a "green data center". Pulled into real estate and facility discussions and decisions. Facility directors will work for the CIO.) - How does PAETEC do this? To leverage telecom & energy PAETEC bought a two-person energy brokerage firm generating $30,000,000 in annual revenues from energy purchasing leveraging their telecom contacts. Half their resulting telecom business came in from talking to the right person about energy. PAETEC's Five Point Strategy 1. Competitive Electric Supplier "CES" (billing for the actual electricity) - 12 to 15 states in the Northeast & Midwest (plus Texas & California?) - Over 5,000 existing PAETEC customers in these states likely spend over $100,000 per year on energy (40% are raving PAETEC fans & 50% think we're better than average) - Helps drive MUCH STRONGER relationships with building managers and owners for critically important last mile access 2. Equipment for Service "EFS" - PAETEC has funded $200,000,000 in off-balance sheet gear for our customers (phone systems, routers, storage devices, etc.) - In future, PAETEC will fund solar panel projects, wind projects, geothermal projects, etc. with PAETEC's EFS program and the customer tapping into available state and local tax credits. - New telecom agents and channel partners will be created from energy brokers and consultants. The PAETEC EFS program will be the secret key agents and partners use to help energy brokers and consultants unlock their business customer's unfunded purchase orders. 3. Energy Expense Management - Very similar to telecom expense management "TEM" - PAETEC will use its PINNACLE software platform to offer power expense management to customers - Help customers save money by shifting loads to off hours, etc. - Telecom agents and channel partners can help business customers in all 50 states 4. Energy Generation (but not building new nuclear or coal-fired power plants) - Would not spend capital to build power plants - Telecom agents and channel partners will use EFS program to build out distributed renewable energy projects - An example would be to fund an Arizona solar project with East coast data revenue by tapping into a customer's monthly MPLS spend. 5. Energy Management Tools - Allworx phone & network server equipment - PAETEC EDGE "engineering design group" - Integrate hybrid IP-PBX servers with other network applications connected to energy using devices like freezers and grills
About PAETEC - 2008 Revenue: $1.6 billion - Employees: 3,700 - Customers: 46,000
Why Does Energy Make Sense for PAETEC? - Financially strong - National scale - Existing customer base - IT infrastructure - Sales & marketing machine
Questions about this article? Please contact Dan Baldwin at Dan@TelecomAssociation.com or 951-251-5155 |
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