Quite often when lost in thought of an aggrieved channel partner, a memory flashes in my mind- the picture of a sleazy little businessman with bulging eyes that reflect fear. He had put all that he had on stake for his business including his money, honor and future, only to lose everything due to no support from his co-partners when a reputed MNC vendor raided his shop in Bhavnagar in Gujarat and got him behind bars.
If to fight is human, the urge to stay united together in times of crisis is only an inherent part of that human urge.
The channel partners are currently facing a situation in which revenue from traditional sources has declined or at best is reaching a saturation point. The competition has grown manifold and there is multiplicity of other issues confronting them. The unhealthy tax regime often punctuated with official dichotomy like the discrepancies in states on VAT implementation, the vexed Octroi issue and the duality in the sale process itself vis- -vis value versus price and the unrealistic targets set out by vendors.
Various trade associations across the country have assumed a key role in fighting for the partners causes. Our good friend P N Prasad, president of Pondicherry IT Association, says whenever resellers get together it is not to make vendors bend before them but rather because partners want to ensure their own survival.
But I would like to specially refer to separate cases of splits and unity moves among the channel in four different cities lately.
While raids by a software giant on piracy have urged the channel members in the tiny union territory of Pondicherry and Tamil Nadu to form a broader conglomerate, in Karnataka the urge for unity is driven by the need to stay together, especially to brave any uncomfortable tax regime.
In fact, the decision to form the Confederation in the south came after a section of the Coimbatore channel decided to stop selling Microsoft products in retaliation to the raids conducted by the software giant and the unprecedented slapping of fines. In Karnataka, Bangalore-based Association of Information Technology (AIT) has taken the initiative.
But if on one hand the resellers bodies are coming together and posing a united front, there have been cases when strong and established associations are marred with rift from within resulting in formation of new parallel bodies. The emergence of multiple associations of resellers has become more a rule than an exception in many cities. Lately, two such influential associations split in Bhopal and Surat. There is uniformity in pattern as the channel fraternity in both the cities cites the failure of the existing body as the reason for the split.
Tamil Nadu Information Technology Associates (TANITA) has made it clear recently in a missive to us that Chennai dealers are not part of their association.
What has irked me as much as it has affected the channel community is that in many places, top vendors are alleged to have masterminded the split in the associations. The story of such splinter group formation made waves in Delhi sometime back; while now a similar allegation has been charged against a major hardware vendor. Interestingly, the vendor is already in news in Bhopal for its dealing with a government-run organization.
This might be or might not be true. But Bhopal Computer Dealers Association president Prakash Chandra Gupta has a point up his sleeve when he informs that 13 out of 25 members of the new association are dealers of that vendor. So that raises eyebrows for all the obvious reasons.
Now, this is an unfortunate and unethical business practice if the allegation is even partly true. Vendors should desist from such indulgence. Divide and Rule is an old craft that is undoubtedly often considered helpful tool, but history is witness to the fact that each time this policy has harmed harmony and the spirit of co-existence to the peril of common good.
I lay special stress on this topic as channel business, especially in the Indian context, thrives on relationships. Having volunteered to counsel these words, I must add that channel members should also refrain from falling prey to any such inducement from vendors. The benefits, on the face value, could appear lucrative but on the other hand, the damage done to the channel business due to disunity will be irreversible.