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Channel challenges

Providing depth and breadth in software and hardware requires distributor intervention.
By Heinz Stephan, Products and services director at Comztek
Johannesburg, 16 Apr 2003

Resellers are increasingly compelled to offer hardware and software - and related services, knowledge and support - to their customers as end-users move towards demanding complete solutions from their technology supplier.

There are several key drivers for adopting this approach in a difficult technology sales market. One is that they hope to be perceived as providing a consolidated service. Despite this, there are still resellers that specialise in only hardware or software.

The reason for this is that many vendors are becoming more stringent in terms of their channel programmes, and require resellers to skill up on their products before appointing them as representatives.

Addressing what may seem an impasse, the channel model pulls in the distributor to offer much of the know-how required of the reseller.

Heinz Stephan, director of products and technologies, Comztek

These channel programmes force resellers into certain areas of specialty, yet in many instances, end-users want a single point of contact for their hardware, software and services requirements. Several factors conspire against resellers hoping to provide services across all disciplines, including skills, investment, headcount, the difficulty of penetrating new markets, and even the saturation of some market sectors.

From the vendor point of view, it is obvious why stringent certification programmes are becoming the norm - many complex products can only be expected to perform as designed if they are properly configured, installed and supported. Any vendor would want to avoid the accusation that their product is sub-standard owing to poor deployment on the part of the reseller.

Many vendors will continue to demand certification of authorised resellers, pushing them to become more specialised. The mid-sized may not have the staff to focus on numerous product sets required to address diverse end-user requirements. This makes the formation of close partnerships between resellers and vendors difficult, as it becomes onerous for the reseller to manage the relationship and ensure the proper skilling of staff. This can, in many ways, limit the reseller`s business focus.

Addressing what may seem an impasse, the channel model pulls in the distributor to offer much of the know-how required of the reseller. While the reseller may not be in a position to provide the diverse technical knowledge across, for example, the hardware networking and software product sets, the end-user demands this expertise. The distributor should position itself to offer such skills as an integral part of its contribution to the value chain.

The bottom line for resellers is that in endeavouring to provide their customers with the full range of products and services across hardware, networking and software solutions, they should look to their distributor to assist them in supplying additional services and support, as well as assist in growing their skills and breadth of their offerings.

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