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Should you still trust your vendor?

One of the biggest criticisms of local networking vendors is the constant change of country manager, which leaves many wondering who to trust.
Martin May
By Martin May, Regional director (Africa) of Extreme Networks.
Johannesburg, 12 May 2004

While the local networking industry seems to have taken a bit of a backslide and the foundations are not quite as stable as they seem, I have identified a checklist which will ease decision-making when selecting a networking partner.

One of the most obvious problems facing the user when selecting a is knowing who to talk to. While a sales person will always stay close, well until the deal is finalised, do you know who is sitting at the top and to whom you can escalate problems, both technical and business wise? Possibly one of the biggest criticisms of local networking vendors is the constant change of the country manager, as well as the positioning of these people in the `ivory tower` scenario.

A country manager should never just be seen as a marketing tool, sent from the parent company to download the latest messages and company ethos. They should be an active member of the local market, they should have local know-how and experience and most importantly longevity. There is little way that any one individual can make a real difference to an organisation in only two years.

Next up is the vendor`s investment strategy. Too many companies are all too happy to rest on the excuse that they are an international organisation and it is not necessary for them to make any real investments - besides handing over a cheque or two to a local charity.

It is also crucial for a vendor to understand the exact needs of the local user. Technology is technology and one solution might have a slight technical advantage over another, but the business solution should be the driving factor in the decision-making process.

A country manager should never just be seen as a marketing tool.

Martin May, Regional Director Africa, Enterasys Networks.

In my opinion and experience the reason so many international vendors are under constant pressure is the ongoing drive for increased revenue and dollars being pumped back into the US (or relevant geography) - the usual `horse before the cart scenario`. As soon as there is a dip in any of these figures the usual set of cutbacks are thrown into the mix; goodbye marketing budget, goodbye head count.

The reality is that as soon as numbers start sliding, surely more marketing dollars are required not less? Similarly, while on a global scale cutting headcount in the case of the US is not that much of a problem and the usual scenario is cutting heads in operations like marketing, sales and engineering and then expanding when times are good - doesn`t impact them. Emerging markets, however, need reinvestment. A company will not survive locally if this is not the case as the offices are designed small in the first place, the revenue pool and model are also smaller and the barriers to entry are greater. The result: vendors pullout to focus on healthier revenue streams.

It is easy to see which US companies follow the strategy that dictates they should pull as many dollars out of Africa as is possible. This is particularly prevalent with those that are following an over-traded model - where distributors are pegged to compete directly with each other and those with the most deals win. The reality is that any `good` distribution model adds value to a client through knowledge of product, support of products, and availability of product. The problem with pegging distributors against each other is the loss of focus, second level support in many cases and diluted value.

On the flipside there are also vendors in the market that are more and more approaching to handle distribution themselves; this allows the vendor to put the money straight into the offshore coffers. The problem with this is that there is no redistribution of wealth and reinvestment into the local market with local profits belonging to the local market. A well-researched, tiered distribution model is there to assist the user. Cutting out the distributor and allowing the reseller to sell direct while also running a distribution model is not only a breach of trust but also highly unethical.

The trick when selecting a partner is to step away from the noise, move away from being `brand-conscious` and take a look at the foundation of the vendors in question. Only when you can truly say, they will not only meet my technology requirements, but they are here to stay, should you make a purchase decision.

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