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Look to the channel

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 06 Jan 2010

SA's channel partners earned revenue of more than $10 billion in 2008, a figure which could triple by 2015, says local analysis firm Frost & Sullivan.

The growth prospect for the ICT channel is a key indicator for tech companies working locally to put more effort into partner strategies, the company says.

“It is clear there are many instances in which vendors and channel partners do not utilise best practice methodologies to ensure they maximise growth opportunities,” says Frost & Sullivan ICT programme manager Birgitta Cederstrom.

She says with the ICT industry poised as an economic growth driver in SA, and the government sector becoming a bigger tech buyer, companies need to look at how they distribute their products.

“Channel partner strategies are often overlooked in the broader analysis of technology markets. This is a mistake, as such strategies are key to understanding the manner in which companies deliver their products to market,” she notes.

The company's research shows one of the main challenges facing vendors to the ICT industry is ensuring products are effectively driven into the market. “This relates, in turn, to the selection of good channel partners and the utilisation of an effective ,” explains Cederstrom.

The key to choosing good channel partners rests in the ability to properly convey business objectives to the market, she concludes.

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