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ScanSource Seeking 300 VARs For SMB Convergence Market: Page 2 of 5

He also points out that end users think voice never goes down. Black believes, in the end, customers will go with solution providers who know the industry -- including the regulations -- not just the solutions.

Baur says that the number of Avaya channel VARs grew about 20 percent this year, roughly the same amount Avaya itself grew. The chief executive expects similar, "if not slightly higher growth from the channel in 2005," he said.

ScanSource, with $1.2 billion in annual revenue, focuses on point of sale, automatic ID, and data and telephony solutions. ScanSource is Avaya's largest distributor, Baur says. Catalyst Telecom started in 1997 and partners with 1,200 resellers nationwide, primarily involved in voice solutions.

At the recent Raymond James IT Supply Chain Conference in New York, ScanSource officials touted the company's growing telecom operation. According to Jeff Bryson, vice president of administration and investor relations at ScanSource, telephony products now account for 44 percent of the distributor's revenue.

In addition, Bryson told attendees at the conference that ScanSource will continue its Solution City program, which includes a series of road shows for solution providers that offers training and education for emerging technologies, such as VoIP and RFID.