In the last few weeks it seems like I have read several news stories about major vendors announcing products with little to no mention of the channel. Some might think nothing of these occurrences but I tend to think a lot of them.
So, here is my question for all of you who live and work in the IT channel. When a vendor launches a major product that clearly can be sold (and likely will be sold) through the channel and does not make mention of the channel does this upset you? I'm not trying to play armchair psychiatrist here, just trying to get a feeling for how the IT channel views itself.
The role of MSP and vendor is a difficult one and I imagine much discussion has (and should still) taken place on this subject. But I don't seem to hear anything coming from the IT channel (save for a few loud yet isolated voices. Does the IT channel view itself as powerless? Does the channel believe that the status quo will never change and that change is impossible so why try?
I'd really like to hear your thoughts.
Thursday, September 11, 2008
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4 comments:
I'd be interested to hear what solution providers have to say, too. We've been covering this issue a lot recently, particularly with Dell. Personally I think VARs and MSPs should speak up if they feel they're being ignored. I don't know if this is coincidence or not, but after I criticized Dell last week, their next big news release went out of its way to highlight partners. So it can't hurt for channel pros to make their voices heard.
Colin, it is great to have you as one of the loud voices on this issue. Keep up the great work!
I guess I will boldly chime in as a Vendor who is looking for channel partners - granted for a SaaS vendor this is sort of new.
I can't speak for established vendors but over the years (nearly decades!) I've been with smaller and start-up vendors. I've found the Channel most often will pay little attention to a vendor who does not have Street Cred, meaning an established customer base and a lot of pull-through sales. This requires the vendor to go out and get reference accounts via direct sales for cash flow as much as Cred, then come back and try to recruit early adopter partners. This was the case in the early days of SonicWALL, for example, and others.
At some companies I've been with (not SNWL or my current company LeapFILE) this has made Management indifferent to the Channel - until they realize they can't scale well without said Channel. I think it highly depends on product and sales model history Management CXO personnel has though. You are a Channel Believer or not.
Hopefully I don't rub anyone the wrong way when I say a lot of VARs (not sure about MSPs) are very much "me too" in terms of what they sell. At that point the sale has become commoditized and price/margin wars happen. I do indeed understand it's difficult to take a chance and add new vendors when 50 are knocking on your door daily though.
I do suppose this is why I've seen the MSP market as well as pure consultancies grow.
Have Street Cred. Looking for Channel Partners. Like long walks on the beach. Tim from LeapFILE...
Charles, great question. We work with members on both sides of this question and I hear “screams” from both sides. The Vendor typically feels the channel is not willing to invest in the infrastructure (i.e. training, marketing, pre and post sales support, technical resources) and therefore the channel is incidental to sales and tends to muddy the waters with the customer. The typical vendor’s expectations far exceed the capabilities and desire of the channel. The channel (resellers) see the demands made by the vendor to be excessive and difficult to implement given the margins they are given to work with. The irony is that both the vendor and the reseller want to achieve the same result and it is not always financially motivated. MSP is a particular challenge to the reseller as they do not know how to sell it or how to adapt it to their current model. They would love to build an annuity income stream but making the transition is a struggle.
Marv McGrew, CEO
SGI
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