Colt has launched a new franchise business model as it looks to grow uptake of its network and IT services portfolio across Europe.
Franchise partners will have full access to Colt’s Smart Office portfolio of integrated network, compute and communications services, explained Jatinder Sispal, north region sales director at Colt Communication Services (CCS).
Selected partners will exclusively provide Colt services in conjunction with their own complementary offerings, allowing them to create a profitable new revenue stream through a range of co-branded solutions and services specifically for their SMB customers.
Sispal explained that Colt is split into three main divisions: Colt Communications Services (CCS) – its main channel business which represents 60 per cent of the entire company revenue; Colt Enterprise Channel (directly connected customers) and Colt Datacentre Services.
“Our franchise model is an evolution and we have an aggressive strategy for growth,” he told CRN. “We are doing something groundbreaking and do not believe other companies are offering a full B2B franchise solution.”
Colt intends to work with about five partners in an initial five territories: the UK, France, Germany, Italy and Spain, he said. The programme will be rolled out to the rest of Europe throughout 2012 and 2013.
The first French partners have been unveiled this week, and the vendor is in discussions with a number of potential UK partners. He added that for the first time under this strategy, partners in the franchise model will also provide first-level support and billing directly to customers, as opposed to the traditional agency model where end customers are billed by Colt.
“In terms of projection, we expect this to represent five per cent of total CCS revenue by 2015,” Sispal said. “We value our brand and believe internally in it. We will ensure our franchisees are kept up to date with ongoing accreditations and support and are confident they will see an uptick in business working with us.”
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