Expert Speak

Sustaining the Solution

Solution

It’s a very subtle shift that is happening in the channel today. As the solution-centric approach gains more acceptance as a business model, the onus to develop and find a solution rest not with the partner, but with the vendor. The bigger the vendor, the bigger the solution and consequently the impact it’s striving to achieve.

The best advantage of standardization and commoditization of technology is that everything now works with everything. It’s very easy for a tech-savvy partner to put together products of three different vendors and offer a comprehensive tailor-made solution to the client. These solutions are currently being offered across networks, in educational institutes, in homes and in the corporate environment.

Realizing that they could stand to lose their market share if their products are not compatible or are limited in reach, vendors have gotten on the solution bandwagon too. Nowadays, it’s the vendors who are touting the solution approach more than the channel partners. They are the ones who are burning the candle at both ends to improve – not just the margin – but the complete package to the partner.

As a result of this move, the advantage has moved back to the partner. Once again, it is he who is calling the shots vendors make solutions, partners pick and choose the ones they want to sell. What determines business is once again not the solution, but the value-added margin that comes with it.

The way the channel is looking at solutions currently is no different from the way it looked at margins a few years ago. The best offer won the deal.

Ironically, this is not the solution at all.

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