AT&T Telepresence Gets Retailers Talking

AT&T demonstrated its telepresence capabilities at this week's National Retail Federation conference in New York City. Retailers and other attendees are already talking about how the global industry could use Business Video technology to improve supplier and customer relationships, reduce travel expenses, and make supply chains more efficient.

Using Cisco's TelePresence technology for videoconferencing, AT&T offered attendees the chance to participate in sessions with Cisco employees in San Jose. Chris Eubanks of athletic equipment retailer Sports Authority said, "It was one of the most real things I'd ever seen. It was like being in the same room as the people in San Jose." Carlo Pochinesta of clothing manufacturer Gucci said, "It was as close to meeting in person as you can get and yet not be in the same room together."

As a salesperson, Erik Kostelnik of employment Web site careerbuilder.com found it helpful in his work. "I started reading the body language of the people. I'm in sales, so it's real important that to understand who I'm talking to and how they're responding to my questions."

Telepresence for Training and Improved Customer Experience
In addition, AT&T and Cisco announced that several retailers were already using AT&T's telepresence solutions. Office products retailer Staples is using it for corporate training, while Cabela's, one of the leading retailers of outdoor equipment is using it to improve the customer in-store experience.

Cisco's TelePresence solutions are part of its Connected Retail strategy to help retailers collaborate better with suppliers, partners and internal staff, while lowering operating costs.

Based on the reactions in the above interviews, telepresence is on its way to becoming a clear alternative to air travel for companies with a global presence. They can benefit from maintaining face-to-face discussions and relationships, while still avoiding the time and expense required for on-site visits.

Watch another video to learn more about the fully managed AT&T Telepresence solution.

Can Retailers Respond to Changing Corporate Needs?

Joe Panettieri did a great job describing the IT management and business implications of the growing dispersion of today's workforce in his post "Managed Services: Safe at Home".

This trend is not only creating new challenges that are driving greater corporate interests in managed services, it is also attracting a broadening array of managed service providers (MSPs) to satisfy businesses' escalating needs.

The office supply retailers are increasingly nibbling around the edges of the IT services market. The most obvious example is Best Buy's Geek Squad which has primarily served the consumer needs of the residential market, but is also responding to the needs of the small office/home office (SOHO) market which Joe described in his post.

The latest example of this trend is the recent news that Staples is going to deliver a portfolio of IT services to small and mid-size businesses (SMBs). These services are going to center around the acquisition Staples made in late 2006 of Thrive Networks Inc., and the online storage services offered by EMC's subsidiary, Mozy Inc., formerly Berkeley Data Systems which was acquired in 2007.

Although Staples' new services are primarily aimed at SMBs, they could also appeal to large-scale enterprises trying to support remote workers working in branch offices or out of their homes. Both Thrive and EMC are already serving large companies grappling with these challenges.

So, should you consider out-tasking your IT support and management requirements to these retailers?

Your Selection Criteria
Staples' on-site and remote services will appeal to many companies who could get the best of both worlds -- economical field support and cost-effective managed storage services. You can also bet that Staples will continuously expand its portfolio to include managed security and desktop services, along with a wider array of on-site capabilities.

But selecting a retailer to support your IT needs will still depend on the complexity of your end-user requirements, and the geographic reach of the retailers' local personnel.

The Scalability Challenge
While EMC's Mozy service is location agnostic, the scalability of Staples' Thrive Networks staff is still unknown. Best Buy has been able to grow its Geek Squad to satisfy the bulk of its residential customers' needs. The key to success for Staples will be the retailer's ability to recruit and retain IT professionals to satisfy the on-site needs of SMBs anywhere, anytime.

If Staples, and other major retailers, succeed in delivering these on-site and managed services they will disrupt the highly fragmented IT services market in the same way they disrupted the office supply industry.