Creating Value-Added Opportunities in Converging Applications

A Case Study from Ingram Micro June 2002

The Business Situation:
In today's challenging market environment, converging applications combining video, voice and data present a unique opportunity for VARs looking for new revenue sources and customers. Leveraging its vast knowledge and experience in converging applications, Ingram Micro helped Ping Technology, a Venture Tech Network (VTN) reseller partner based in Waco, Texas, capitalize on these emerging markets. As a hub of knowledge and resources in the IT industry, Ingram Micro used its expertise to help Ping Technology identify two high-potential technologies - videoconferencing and IP telephony - that would enhance the company's product portfolio.

Market Background:
In the wake of national tragedies and decreasing travel budgets, long-distance audio and videoconferencing have become hot growth areas. Similarly, IP telephony, which allows video, voice and data to be transmitted over a single network infrastructure, is a rapidly growing market. According to a February 2002 report on video conferencing systems from high-tech research firm InStat/MDR, the worldwide market for set top box and room video conferencing systems will grow from approximately $772 million in 2001 to more than $2.2 billion in 2006.

The Resources and Offering:
Ingram Micro provides a broad range of products and services to support converged applications, allowing VARs to capture new business and deliver high quality to their customers. These products and services are backed by an array of technical support, marketing and business development programs, which include:

- Regionally deployed business development managers offering market and technology expertise, vendor contacts and demo units
- Training programs delivered instructionally and via Web casts
- The Ingram Micro Solution Center with a demo facility for prospective customers
- Dedicated technical support including a help desk to answer pre-sales questions, conduct demonstrations and assist post-sales
- Product and service solution bundles
- Lead generation and end user referrals
- Alternative financing options
- Convergence Inside Sales Specialists who provide information about videoconferencing and other converging technologies such as IP telephony
- Ingram Micro's Web site provides additional information about converging technologies

By taking advantage of the resources provided by Ingram Micro, Ping Technology has broadened its lineup of convergence products to include Polycom videoconferencing solutions, as well as Cisco and 3Com IP telephony solutions.

The Benefits:
Since partnering with Ingram Micro on this initiative, Ping Technology has received extremely positive feedback from its customer base on both the new IP telephony and videoconferencing solutions.

According to Jeff Moody, president of Ping Technology, "Ingram Micro listened to what Ping Technology was trying to achieve, and helped us focus on value-added opportunities that would grow and complement our existing business. Emerging technologies are our lifeblood, and our sales staff is extremely excited about the potential for voice-over-IP and videoconferencing, as well as the next wave of new, converging technologies."

"Ingram Micro's market knowledge, extensive training programs, lead generation efforts and established vendor relationships have all proven to be invaluable to Ping Technology," Moody added. "In short, Ingram Micro has demonstrated a true commitment to our business - and has been instrumental in helping us expand into new markets."

Ping Technology has been so pleased with the Polycom videoconferencing solution offered by Ingram Micro that they are not only selling it to their customers, but also using it to communicate with their Ingram Micro technical support and sales teams. In addition, Ping Technology used the system to share its success with another VTN member, Dynamic Computer Solutions, a VAR also planning to enter the videoconferencing market.

* From 2001 Multimedia Telecommunications Market Review and Forecast.