Telstra's new services outfit will complement and compete with partners - EMEA channel boss

Adam Wilson talks to CRN about what the comms firm's new unit means for its two sets of channel partners

Aussie comms giant Telstra has rolled up a host of acquired businesses into a services arm that will both complement and compete with the channel, according to EMEA channel boss Adam Wilson.

The new division, Telstra Purple, is an amalgamation of a number of companies, including London-based Company85, which will sell services to end users and channel partners.

Purple provides advice and consultancy services to customers, specialising in networking, security, cloud, collaboration, mobility, software, data and analytics, and design.

Wilson (pictured) explained that Telstra operates two channels: one where businesses refer opportunities to Telstra and Telstra owns the customer relationship, and one where suppliers resell Telstra services to their customers.

The channel boss admitted that there could be some conflict with partners, as Telstra Purple will engage with end users.

"We find there's often an augmentation opportunity because quite a lot of the channel are looking to develop their own capabilities," he told CRN.

"For example, if a value-added reseller is looking to establish a security practice, undoubtedly there are nearly always areas where they require assistance, so there's an augmentation opportunity.

"The referral channel is an evolving channel in Europe and there's a community of agents and sub-agents in the market.

"So there's certainly no conflict with people who are purely looking to bring qualified opportunities to organisations like Telstra.

"But in the reseller channel, there can be an area of overlap; but we do find an augmentation opportunity as well to help our partners establish their own practices because those practices can't be built overnight."

The comms firm has had a presence in the UK for 30 years and most of its 250 master agents in EMEA are located here.

The effect that the newly branded Telstra Purple will have on partners depends on which channel they are in, according to Wilson.

He stated that it will have a "positive impact" on the referral channel as the firm can bring propositions to the master agents and their sub-agents.

"It makes a lot of sense for service providers and vendors to leverage the master agents as a go-between because they act as an aggregation point to those sub-agents; that makes it a lot easier to establish that channel," he explained.

The impact on reseller partners, however, is dependent on where they are concentrating their efforts.

"Typically, if you look at the vendors that they work with - be it Cisco or Microsoft - usually there's a great need to establish the practice quite quickly to be recognised by the vendor as an expert in the field, and we recognise that," Wilson said.

"Those consultancy services can help them better execute what might be an embryonic area of their business that they're still growing and developing.

"We could actually help them expedite that, and they might be seen as a better prospect in the eyes of the vendor."

The EMEA channel boss is optimistic about Telstra Purple's first year in the channel, stating that there is a "possibility" that over half of its indirect business in the UK will be for Telstra Purple's services.

"I can already see a healthy pipeline of opportunity," he said.

"We're expecting [initial project opportunities] to grow, but we will probably need a volume of opportunity to make it a success.

"So it's really key for us that we find the right partners to bring the right opportunities to establish that volume."