10 Channel Tricks And Treats
Symantec raised partners' eyebrows this summer when COO Enrique Salem told a group of Wall Street analysts that the company is giving its largest 900 customers the option to buy direct. Salem also revealed that Symantec plans to automate SMB software license renewals, a strategy that caused concern among some partners that those renewals would go directly through Symantec. The vendor maintains that the process will facilitate renewals through partners, but some solution providers remain unconvinced.
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With the Apple iPhone, Google's Android-based G1 and a spate of sleek new BlackBerry devices from RIM, mobile computing has never been more popular. For savvy solution providers, that translates to big-time opportunities in mobility solutions, mobile security and other related IT practices.
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The current economic downturn has some solution providers worried as cautious customers cancel or postpone planned IT projects. The credit crunch, too, could pose problems for the channel if funding for leasing or general credit lines runs dry. Even though vendors historically have turned more channel-friendly in tough economic times, the current state of affairs has many solution providers on edge.
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The Green IT movement has been generating a lot of buzz lately, and the floundering economy will only help push green solutions to the forefront. Even if customers aren't motivated by the environment to go green, they are interested in the cost savings that come with reduction of power consumption, cooling requirements and travel. Solution providers that can clearly demonstrate cost-cutting IT solutions will be in good position to bring in greenbacks.
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Adrian Jones and the channel team over at Hewlett-Packard have been pretty busy. The company on Nov. 1 plans to launch a revamped PartnerOne channel program that boosts incentives for partners that grow and replaces the familiar Gold and Platinum partner badges with Preferred and Elite monikers, which the company says will help solution providers better market themselves. Solution providers are optimistic that the new program will help them reap bigger rewards.
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The year started off with solution providers still feeling the impact of AMD's "Barcelona" debacle, in which a major glitch halted distribution of the long-awaited quad-core server chip at the end of 2007. Then Intel delayed the launch of its "Montevina" Centrino 2 mobile processors, and packaging problems with Nvidia's graphics processors caused a ripple of performance issues throughout the notebook market. The end result? Solution providers have had to duck and cover to avoid all of these components problems.
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While some early bumps were reported when Microsoft rolled out Service Pack 1 for its Vista operating system, by and large the launch was a net positive, delivering hundreds of bug fixes as well as performance improvements. While Vista still takes its share of potshots from users and rivals alike, the SP1 release offered the channel some sweet relief. Here's hoping SP2 continues the trend.
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Regardless of which candidate wins the U.S. presidential election in November, the channel has already reaped at least one positive outcome: e-mail security has stepped into the spotlight after vice-presidential candidate Sarah Palin's account was hacked. The attack on Palin's Yahoo e-mail account gave solution providers a prime example of how easy it can be for hackers to infiltrate a system if they set their minds to it. Let it be a lesson to us all.
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Dell's move into the channel has certainly been met with skepticism, and the vendor is well-aware that it has a ways to go before it earns the channel's trust. That said, the company has injected its partner program with new features aimed at building up its value proposition for partners. One is the planned rollout of an SMB account registration program, one that allows VARs to stake a claim to customers, not just specific deals with those customers. It's a bold move for Dell, which Channel Chief Greg Davis said is "one we have to get right." Another is Dell's creation of a formal product return program for certified partners. VARs are anxiously awaiting Dell's next step.
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Former Cisco solution provider Infra-Comm took the vendor to court, accusing Cisco of breaching its partner agreement and the terms of its deal registration program by passing a potential sale to AT&T. A California jury agreed, finding in favor of the VAR and awarding it more than $6 million in damages. While Cisco is expected to appeal the ruling, the case could have widespread impact on the contracts vendors draw up with their channel partners, forcing vendors to reconsider the one-sided nature of some partner agreements. Many in the channel see it as a big win for the little guy.
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