... managed IT and other managed services. And also the Pacific obviously doesn’t play ideally on the Eastern Seaboard.
Because our goal is to do no harm, we’ve maintained DSCI’s entire management infrastructure. Their CEO is in place and he’s running Northeast operations, their senior vice president of sales is running their sales in their region. There are aspects of the business in the interior where we have combined the entity, but from what the agents would see in the Northeast, it’s business as usual. They have the same leaders of their channel, the same channel management in place, same support people and the same operations people. And behind the scenes we’re certainly maximizing best practices across all our regions and our growth that has now gone outside of our regions with SD-WAN technology.
CP: Are TelePacific and DSCI’s partner programs going to be consolidated, or will they remain separate? If they are being consolidated, what’s the timeline?
KB: The interesting piece is that because DSCI was Northeast-centric and we were California, Nevada and Texas-centric, we didn’t have a tremendous overlap, and DSCI hadn’t really secured many master agents the way we had over the years, so we didn’t have overlap with that. So instead, what happened day one is that opened the floodgates for the national masters that we do business with – Sandler Partners, Intelisys, WTG, Telarus, TBI, etc. – to now do business under the TelePacific umbrella in the Northeast through DSCI. So from a standpoint of integration, we still have different billing engines, and how we handle payments will be consolidated. But from a contractual standpoint, it’s still supported under the DSCI agreement they signed. We may combine that over the next couple of years – that’s usually what we do over time – but our programs are both very channel-friendly. The channel was about 50 percent of DSCI’s revenue and about 45 percent of our revenue, so from that standpoint, we’re really just maintaining that same channel-friendly environment with both companies. And they’re leveraging the best practices that they get out of a bigger-scale company.
CP: Previously you spoke of TelePacific partners expressing regret about not being able to work with clients outside of California, Nevada and Texas. Has that already changed?
KB: The geographic expansion was one of the big gets for DSCI and TelePacific. But alongside of this acquisition, we put SD-WAN infrastructure within our network, which now gives us nationwide reach for the DSCI family of products, the UC product, the managed services-managed IT offering, ITx, along with the expansion we naturally have with our WAN offering, which is our OneNet MPLS offering, that allows us to provide services to customers with class of service anywhere in the market.
Our partners who focus with us with our channel managers in California, Nevada and Texas right out of the gate got a channel-management team based in the Northeast, and then [with] the combination of the group, we’re able to cover any place in the country, along with our quoting engine, our services/support channel team that we have to help them move fast to provide their subagents or their customers with what they need for our quote from TelePacific.
CP: Has the ability to expand your capabilities and reach a nationwide audience changed your channel strategy? If so, how?
KB: It has changed our channel strategy. As a matter of fact, we recently announced .an internal change, and added additional management staff and another director to the TelePacific channel, someone promoted from within. What that did is freed up Hilary Gadda, who has been with TelePacific for over 15 years as our director in the channel ... to focus on business-development activities outside of our markets. Hilary is also the president of Women in the Channel, she has tremendous relationships and we have great relationships with partners who do business with us, but have done business with us in our markets.
People are now looking at TelePacific beyond the regional nature of who we used to be, and the same for DSCI, and see us now as a combined geographic business.
And in the future, any expansion that we do will ...