"What attracted us to SYNNEX was their nimbleness in being able to execute against this vision and to be able to put things together rapidly," Schlagbaum added.
The deal came together very quickly with talks beginning in February and a program rolled out this summer in advance of Tuesday's official announcement, with a few targeted cities and road shows to introduce it to the VARs.
"We've already had quite a few that have signed contracts and that have been onboarded," Dow said. "Now we are in phase two of enabling, training and getting those guys productive. In parallel we are working on phase three, which is expanding recruitment." Service is now available throughout the Comcast footprint, which covers 39 states and the District of Columbia.
One of the early converts is Allen Brooks, executive vice president at ServIT, an MSP based in Kennesaw, Ga. ServIT is a longtime SYNNEX partner that sells all-inclusive technology solutions, including connectivity. The company has recommended Comcast network services in the past, but has not gotten paid for doing so. He said the SYNNEX deal gives him an opportunity to make money on network sales and it brings him closer to the provider instead of calling an 800 number, which enables him to serve his customers better.
Working through SYNNEX, ServIT already has developed a pre-qualified target customer list, and Brooks claims that there are a couple of sales ready to close. He also said he has appreciated the joint selling approach offered by SYNNEX and Comcast.
Comcast is not just another vendor on the SYNNEX line card, but part of a larger strategy acknowledging that the traditional hardware channel needs to transition to a services-based business.
"As we see more services go into the cloud, we'll start seeing more and more VARs shuttering their doors because there's less and less hardware to sell," Dow said.
Dow is passionate about telling VARs about the upside potential of selling Comcast's services, noting that a basic coax circuit can earn them $200-$400 upfront as well as an ongoing monthly residual for the term of the contract. This compares to $50-$200 margin on the sale of a switch, router or server.
SYNNEX is offering three compensation options: Referral partners are paid an upfront bounty based on a multiple of the monthly recurring charge. VARs that want to sell the service as subagents get a larger upfront as well as a percentage monthly residual, which increases with the term length of -3 years. Finally, VARs that want to white-label and incorporate connectivity into a managed service will get a richer upfront and monthly residual.