Some very interesting developments are taking place in the channel community. One thing that I find very interesting is the foray of vendors who have so far catered to the needs of SMEs and SMBs, into the enterprise space.
While the shift can be a strategic business decision for the vendor, what does it spell for the channel partner? Well, there is no clarity.
Stories I have read on this strategic shift in the channel journals and online sites revolve around new products, R&D investments, increasing sales staff, direct presence, etc., to tap the enterprise. The channel model, however, has remained the same. Largely, the vendors want to follow the distributor-sub-distie-reseller opportunity, with fancy metallic names.
On a brighter side, vendors are talking close co-ordination with large SIs and ISVs. They are thinking about installing dedicated resources (sales executives) at the channel office. Some of them who already have a large base and who can afford to be placing dedicated resources in tiered cities (class A&B). Many of them are also thinking of converting large partners into value added resellers. And the small resellers are left on their own…
As one reseller based out of Mumbai told me recently, “All these deals and projects are for the big guys. We are very small fish.” All the same when I raised the question whether a foray into the enterprise space makes business sense for them? The reseller replied in the negative. I will certainly speak with him for more information. But that will have to wait for now.
My view is that traditionally SIs and ISVs have had a long standing relationship with large accounts for eons now. Plus when large corporate place orders for PCs, laptops, or even Blackberries, the small reseller does not have the resource to firstly bid for the project (because of high deposits), and secondly because of the money required to purchase the equipment, fall in a particular criteria for a longer credit period, and so on and so forth.
So does that mean that small resellers should not aim high? I believe they should. But tread cautiously. Think before you leap. Understand the dynamics of the new business. Prepare yourself. And if you do that, not will you be servicing large global corporate, but also the President of India or the Prime Minister… Keep your fingers crossed for that .
So till the next weekend…