As chief executive officer of Mitel Networks, Don Smith is responsible for setting the vision and building the organization for this global provider of business communications solutions. Mitel Report recently spoke with him to gain his perspective on the integration of Mitel and Inter-Tel, and to get a sense of where he sees the combined company’s opportunities in the coming years.
MR: Practically all of Inter-Tel’s employees and dealers are aware of Mitel, particularly its product line. But what would you want them to know about your company, particularly from a cultural perspective?
DS: Probably the one message we want to convey is that from a cultural standpoint Mitel and Inter-Tel were very similar, and I would hope they find working with and doing business with Mitel just as rewarding as they did with Inter-Tel. Both companies have enviable track records in creating technology solutions that address customer needs. In addition, both have always had the utmost respect for channel partners, and have worked hard to help them build their businesses. This commitment will only intensify as we continue to integrate the two companies. We want all of our partners to know regardless of which product line they sold, they can continue to count on the Mitel and Mitel US organizations to remain an indispensable resource.
MR: From a product portfolio standpoint, how do you see Mitel competing in the market?
DS: The combination of the two companies gives us what I think is the most comprehensive product portfolio in the business. We have solutions like the LAKE products, which serve the SOHO market, and the Mitel 3300, which can address several thousand users per single site. Between those two product lines we can offer the Inter-Tel 5000, a market leader in the SMB space. We can also serve the hosted environment with the Mitel 3600, so from a platform perspective, we can confidently meet the needs of a business of any size. We also have one of the most complete suite of applications in the industry including contact center, unified communications, collaboration and mobility tools.
I think that the breadth of our product line continues to be steps ahead of the competition, and our entire company is committed to maintaining this position of leadership.
MR: How about from a sales channel perspective? How does Mitel’s distribution network fare against your traditional competitors?
DS: One of the more satisfying aspects of integrating the two companies is the opportunity to work with very strong, savvy and distinctive groups of distribution partners. Our primary objective is to create a network of both dealers and direct offices that will work cooperatively to ensure our mutual customers are well looked-after.
Mitel now has over 50 direct offices in the United States, well above any of our competitors. And our distribution network exceeds 1800 resellers throughout the world. We are a global player, yet our roots are grounded in our ability to meet everyday business challenges. We’ve built a reputation for solving customer needs as evidenced not only through our product lines but also through innovative go-to-market initiatives such as managed services.
This philosophy, combined with an expanded product and services portfolio, should satisfy the needs of each of our channel partners. A relationship with Mitel gives partners access to selling compelling technology, comprehensive technical training and sales support, and innovative programs that empower resellers to develop closer relationships with their customers while enjoying recurring revenue.
MR: Some industry analysts state that technology has become too complicated and cumbersome for business to really understand, yet alone embrace. Do you agree with this assessment? Is it a challenge for a global technology provider to remain relevant to local market needs?
DS: It can be a challenge, particularly for companies who don’t listen to their partners or customers, or think that technology is automatically the answer to every problem. But that’s not the way we choose to do things. While our competitors may perceive themselves or even Mitel as a technology provider, the fact of the matter is our customers choose to do business with us because they see us as a company with a long-standing reputation for building advanced communications solutions that address both current and evolving needs. This philosophy resonates in every market we serve, and is the cornerstone of our success.
Each of our dealers, partners and employees embodies this philosophy, and they carry this message to the market. We are not about selling technology but are everything about solving very real business challenges.
MR: As separate entities, Mitel and Inter-Tel both were known for placing a great deal of emphasis on research and development activities. Do you envision this changing at all with the combined organization?
DS: Our entire executive team, as well as Mitel’s board of directors, have been steadfast in articulating the necessity of maintaining a competitive edge in technology. The market knows how powerful our systems and applications are, but this leadership role can be fleeting unless we continue to build on this success. The best way to accomplish this is through R&D. We’ve all been in the industry long enough to understand that while creating a short-term technology edge may be gratifying, the benefit lies in maintaining this leadership role over the long haul. And building great technology is not enough. In order to succeed in the market, it has to serve real-world business drivers. That’s the way we have always developed technology, and it’s a philosophy we intend to continue.
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