Today, a large share of organizations operate with multiple unified communication as a service (UCaaS) vendors, coupled with a plethora of other apps and tools. This type of fragmentation is both a blessing – because many companies require it to meet new demands or reach new customers – and a curse, for the companies themselves, and for managed service providers (MSPs) and value-added resellers (VARs).

End-user companies essentially pay a ‘fragmentation tax’ on the complexity of their environment, while MSPs and VARs are forced to find ways to accommodate the complexity while also minimizing its appearance, cost, and burden.

What’s driving fragmentation?

Roughly half of organizations are operating a fragmented unified communications (UC) environment, and there are many reasons why this has come about. The transition from on-premises solutions – or even multiple on-premises solutions – to the cloud is among them. So too was the scramble to adapt to remote and hybrid working, forcing companies to move quickly without as much consideration for integration. Mergers and acquisitions have also historically been a driver for fragmentation.

Let’s not forget a crucial reason, though: best of breed. No single vendor can meet all of an organization's needs. Different departments may require different functionality, and niche solutions are likely to help only those with niche problems. Most organizations, therefore, must build up a suite of different applications to meet the needs – and address the problems – across the whole of their business.

The blessing is that with best-of-breed solutions, companies can excel in certain areas. The curse is that fragmented systems lack integration, which disrupts workflows and massively decreases overall performance. It’s also an administrative burden, with companies expressing frustration with managing multiple platforms, billing systems, and support contracts.

Why does fragmentation matter for MSPs and VARs?

The fragmentation of UC and other applications means that for MSPs and VARs, the traditional single-vendor strategy is no longer a viable approach. By aligning too closely with one vendor, both VARs and MSPs risk being replaced due to their inability to accommodate the diverse needs of their customers. Customers expect their suppliers to support their needs and chosen platforms, and when you don’t, your customers will start to seek a partner who can.

In an environment where customers want more, vendor lock-in is also a risk that can compress margins. Single-vendor strategies create a dependency that’s burdensome, leaving MSPs and VARs vulnerable to changes in their vendor contracts or price increases that are beyond their control. If your company is only aligned to one of the ‘big players’, then you’re effectively at their whim.

The complexity of the multiple applications also places additional burdens on MSPs and VARs, driving up operational costs and reducing margins. To support a customer who uses Zoom for meetings, Teams for internal chat, and Webex for a call center, for example, a VAR must hire, train, and certify staff on multiple platforms. This drastically increases operational cost. Likewise, an MSP must now troubleshoot and fix issues across multiple systems. This reduces the efficiency of management and pushes up the cost when those systems aren’t integrated into a unified platform.

Moving forward with choice and simplicity

MSPs and VARs have a choice: they can be skeptical in the face of fragmentation, wait for the trend to pass, and bury their head in the sand, or they can be agnostic – capable of working with whatever comes their way and with whatever their customers need. By taking a vendor-agnostic approach, VARs and MSPs can embrace the change while effectively carving out a lucrative niche within the market.

Taking an approach like this helps to retain customers because they’re not going to shop around for more flexibility: you provide enough for them already. It can also help to protect margins from compression as it lets MSPs, VARs, and their customers change vendors if they create less favorable terms.

Comms complexity causes knottiness for MSPs and VARs, but they can minimize that with the use of single-pane-of-glass management tools that can simultaneously monitor and report on the performance of multiple UCaaS and collaboration tools. This allows VARs and MSPs to meet any customer requirements without having to become a direct partner with every single vendor or train staff on their many platforms.

Ultimately, once VARs and MSPs have taken the new approach and invested in UC management platforms that span multiple vendors, they can start to position themselves as integration consultants – much more than simply resellers or managers. This is what the data shows companies want, too.

Research from Cavell and CallTower highlights that, for companies of all sizes, when they operate multi-vendor environments, they overwhelmingly want to purchase from (and work with) a single provider. They want best-of-breed functionality, and they want it from one best-of-breed partner.

MSPs and VARs that can accommodate the fragmentation of communications will succeed, where those who shy away from it will struggle. But simplifying the complexity internal to their organizations, without passing it on to customers, is a precondition of success.

Northamber has announced the acquisition of Nuvias UC’s UK hardware business for £7.1 million, as the distributor looks to strengthen its presence in the audiovisual (AV) and unified communications (UC) markets.

NUC Distribution will merge with Northamber’s own portfolio to create a unified, scalable platform that covers the full spectrum of AV, UC&C, and smart office solutions.

The agreement follows Surrey-based Northamber’s previous acquisitions of Tempura Communications back in 2024 and Epatra earlier this year.

With this latest buy, Northamber said it is deepening its capabilities across Microsoft Teams and Zoom-certified video systems, enterprise voice and telephony, specialist UC endpoints, as well as smart workspace and meeting-room solutions.

“The addition of the highly specialist team from Nuvias UC to our group significantly broadens our UC and AV capabilities,” commented Alex Phillips, chairman of Northamber.

“We are delighted to have this opportunity, which, alongside our existing domestic and international portfolio, will accelerate our growth in one of the fastest-evolving technology markets.”

Partner benefits

The acquisition adds £28.8m in hardware revenue and bolsters Northamber’s capabilities across Microsoft Teams Rooms, Zoom Rooms, and hybrid working ecosystems, while absorbing the Nuvias UC team’s broad expertise.

More than 700 UK customers will now join Northamber’s ecosystem, extending the firm’s reach into the mid-market and enterprise, public sector, and service provider segments.

For UK channel partners, Northamber said the acquisition will provide ‘significant benefits’ – such as improved availability, stronger vendor alignment, expanded technical support, as well as comprehensive collaboration solutions.

The move comes as vendors increasingly favor specialist partners that can offer a combination of scale, reliability, and technical depth – while customers prefer suppliers that can provide complete solutions, according to Phillips.

“Having two highly complementary businesses in the Northamber Group means partners have a single, specialist route for end-to-end collaboration technology,” he explained.

“It is part of our long-term strategy to deepen our AV capabilities, strengthen UC and collaboration, add specialist services, and scale through strategic, targeted acquisitions.”

A natural fit

Having sold its hardware arm, Nuvias UC’s remaining software and services division will now operate under the Konekt brand as the company centers its focus on cloud communications and services.

Commenting on the future of the hardware business, Konekt CEO Joel Chimoindes said Northamber offers the scale and technical capabilities to support customers through the next phase of market growth.

“Their focus on AV and UC makes this a natural fit, and we are confident our teams and partners will benefit from the combined strength of the portfolio and expertise,” he added.

“As this part of the business transitions to Northamber, we are looking forward to our continued growth as we focus on supporting partners through our cloud communications platforms and services.”

Cloud communications platform provider 8x8 has announced the appointment of Kevin Kraus as its new chief financial officer (CFO) on a permanent basis, having served in the role on an interim basis since November 2022.

Prior to his interim spell, Kraus held the position of senior vice president of finance, overseeing the company’s financial planning and analysis, as well as procurement functions. 

He brings a wealth of financial expertise to the role, as well as a strong track record of strategic growth. 

In his new role as CFO, 8x8 said Kraus will lead its global finance and accounting organizations, overseeing financial planning and operations. 

“Kevin’s promotion to the CFO role is well deserved, and his experience driving both operational efficiency and profitable growth makes him a perfect fit for the role,” said Samuel Wilson, CEO at 8x8. 

“His strategic insight, coupled with his deep financial acumen, will be invaluable as we continue to evolve our business.”

Kraus first joined 8x8 back in 2019, having previously served as vice president of finance for cyber security software provider Imperva. 

Prior to that, he was senior director of finance for network visibility and traffic monitoring technology specialist Gigamon between 2015 and 2017. 

During that time, the seasoned veteran accumulated a wealth of experience across financial planning and analysis, procurement, facilities management, SEC reporting and investor relations, sales compensation operations, as well as M&A integration.

Kraus’s appointment as 8x8 CFO comes as the firm continues to expand its experience communications as a service (XCaaS) integrated cloud contact center and unified communications platform. 

The company said it is focused on investing in its ecosystem of technology and service partners to expand the portfolio of AI/ML solutions available on the platform, with Kraus’ appointment to help position the business well for further strategic growth and investment in innovation. 

“I'm incredibly excited to continue leading the finance and accounting organization for 8x8 as chief financial officer,” Kraus said. 

“We have a clear vision and a strong commitment to innovation and customer success. I look forward to contributing to the company’s continued growth and helping it achieve its strategic goals.”