AMC or annual maintenance contract what does the term signifies to all of you?
For large system integrators (SIs) or independent software/hardware vendors, it implies erasing bugs in the software/hardware, renewal of licenses, security, etc. But is AMC that simple? I am trying to look at the issue, and will not touch upon a particular application/technology for obvious reasons.
While corporate and vendors still enter into traditional separate SLA agreements for spare part and skill support, I am seeing a shift in trend where customers are taking a shift away from the traditional route. They are opting for specialized service providers, signing on very granular SLAs (taking nothing for granted), and are not only saving large amounts on hardware and software maintenance, but seeking genuine service from authorized/certified partners.
Yes, the market is now opening up for partners who used the slowdown to train in the services aspect of business. And yet, is everything as rosy and as simplistic as it sounds? No! exclaims V.R, a reseller based out of Bangalore. A touchy subject for him, V.R. who is used to working with the vendor companies feels that AMCs in India only mean assembling and other aspects. Not many people have the actual expertise or understanding of specs in a particular hardware, and hence the age old lombarding contitures, “Oh!, this is not a hardware problem, your software is corrupt.” And the software guy retorts, “The software is running fine, the hardware is not OK.”
And in this melee, the harried customer runs pillar to post, for he knows not what exactly is the problem, whom to go to, etc etc,. But he is getting smarter. He realizes that AMCs are very important. But the definition of an AMC has changed from assembling, repair etc, to actual services that include cleaning, debugging, etal. And the customer is ready to pay a premium just so that the equipment does not konk off at an unearthly hour. Online search is helping the customer learn more and more about similar problems faced by others in the industry, and how the AMC service provider helped overcome it.
And what is expected from the channel partner? Honesty and commitment. Is the channel community equipped for the service? Here lies the catch. For there is a debate with some partners claiming readiness on the service front, and some others admitting that the claims are fake. I was recently told about a large service provider who owns a large organization. But only one person among all the employees knows the entire pc-lap-top inside-out.’ The company is also very granular, and commits in SLAs that a service engineer will be at your door in about a couple of hours. This US trend is slowly creeping into India, and this is good-both for the partner as well as for the customer. For this will not only bring in more professionalism, but also a commitment that your problem will be resolved at the earliest.
It is high time we come out of the lethargy and take the services aspect of business very seriously, essentially since all vendors are giving the channel a chance to earn recurring revenues through services.
And before I sign off, I want to invite the community to share their concerns, woes, or any question it may have regards Technology, HR, Finance, Sales and Marketing or legal with our experts. Yes, your favorite Channel Times is shortly introducing a panel of experts who will respond to your queries. You should have their names probably by this time next week.
…and so till the next week end…