Friday, July 09, 2004

Issue: No Vendor "Owns" Its Channel

Many vendors get to feeling proprietary about their channels. While this is natural, especially in regard to competition, it is out of place in the open marketplace of VARs and Integrators. By definition, the VAR is integrating products from multiple vendors into its solution. Yet vendors still try to filter and control access to their channels.

I remember when we were building a channel for Pacific Bell whose connectivity was critical to network hardware and software vendors. Some such Cisco embraced us and actively helped Pacific Bell recruit its members into the new RBOC provider program while others such as Novell not only refused to cooperate, but actively tried to stop our contact with the channel. No surprise which one did better in the channel.

What some myopic vendors fail to realize is that this idea of proprietary channels not only is bound to fail (read The Cluetrain Manifesto), but also reduces the power of their own channel. If it is going to happen anyway, you may as well be part of the answer rather than an obstacle.

One of the best things a vendor can do for its partners it to help it build a stronger, more robust product and service offering. What are the strengths and weaknesses in your channels offering? What new product or service could they add? How could rapid adoption of a tangent or complimentary product impact sales of your products like PacBell's did for Cisco?



Scott Karren, The Channel Pro


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