Growing Up Together

So, it makes a lot of sense for many solution providers to gravitate toward relationships with smaller product vendors upon which both sides can build a long-term relationship.

This theme resonates loudly in the main story in our special report on profitability, which publishes next week. Several solution providers who shared their best practices for that article pointed to close alliances with a less-established software or security vendor as one key to their ability to build a profitable solution. I found myself writing down the names of several as news story leads, since I know our coverage of them has been minimal or nonexistent.

These VARs cited the low operational overhead associated with these alliances as one reason for their success over time. In other words, they could resolve issues and questions more rapidly, jointly approach prospects armed with deeper specific knowledge of the technology, get products (and rebates) more quickly, and make more of a financial impact on their own bottom line and that of their vendor partner.

Certainly, it’s risky to stake your business on a product supplier that may not be around in two years either because their financial backing ran out or because a larger vendor has swallowed them up. In that sense, your well-being is completely entangled with theirs, and either scenario presents its own unique challenges. Then again, it seems there are just as many stories these days of companies that have grown up into respected industry forces in lockstep with their VAR partners. SonicWall, frankly, is one recent example. I’m sure you could share many, many other names, and I hope you will.

One definition of the word “partner“ describes a relationship where the participants have equal status. As you routinely reevaluate your vendor relationships, thinking small may just turn into something big.

Who’s growing with you? Tell me about your favorite emerging vendors at (516) 562-7446 or via e-mail at hclancy@cmp.com.