Master agency PlanetOne Communications expects to end 2014 with another record year; revenue is up 36 percent, said CEO Ted Schuman speaking to about 160 agents and service providers during opening remarks at the PlanetOne 2014 Telecom Tour stop in Scottsdale, Arizona, Wednesday.
“The good news is PlanetOne, thanks to all of you, is doing incredibly well. We are having our best year ever,” he said.
The privately held company increased revenue in 2013 by nearly 30 percent, Schuman said, noting the sustained growth has helped the company to qualify for the Inc. 5000 list four years running. It also has earned PlanetOne numerous awards from its top providers. For example, it recently attained elite status with Level 3 and became a top partner for Masergy.
Schuman said the growth is being fueled by telecom and IT convergence. That, he said, has blurred the lines between the LAN and WAN, opening the doors to partnerships with IT solutions providers, creating a broader and sticker product set, and enabling PlanetOne to close more enterprise accounts.
“Where we used to get a few enterprise deals a month, we are getting a few to several weekly,” Schuman said, noting average revenue per transaction also has grown six-fold in the last five years, from $500 to $3,000 per month. He added that services are sticker with some customers signing terms of five and even seven years.
“You are not going to go in and do a tech refresh if you’ve gone in and done it right and captured all of their spend,” he said. That’s a big difference from the traditional telecom agent model of year’s past. “Historically, the typical telecom agent went in and got a voice circuit or a data circuit – a little bit of connectivity and you were done, out the door,” he said. “Now we are looking at collaboration, DR, virtualization of services, desktops, servers, security. It’s happening. That’s really exciting for all of us.”
And, Schuman encouraged laggards to get with the program. “If you are not tapped into that to where you are moving upmarket and stepping up your game, you are missing out on a great deal of opportunity and revenue,” he said.