An Insightful Move?

CRN Distribution Editor Scott Campbell writes about the Insight SMB solutions foray in our lead news story this week. Insight, which is investing $1.5 million to retrain its sales force to sell solutions as opposed to products, is looking to act as a prime contractor and will engage with a select group of VARs with expertise in areas such as security.

The Insight move follows similar entreaties by other national, product-focused solution providers, including CDW and PC Connection. All these companies see the steam running out of the proposition that deals can be won solely by offering the very lowest price.

What impact have these new strategies had on the channel as a whole? So far, not much. Local solution providers already have established tight relationships with their customers, and many have moved beyond solutions into managed services. Certainly, some select VARs will find it to their advantage to partner with the national players. (The Insight program could mean incremental revenue if the terms are right, but it doesn't carry restrictive contractual terms such as a non-solication agreement that prohibits the VAR from doing business with the account once it has engaged with Insight).

But none of these national resellers has yet come up with a broad partner-centric offering that combines low-priced product delivery, capital, marketing and sales prowess, and brand strength with the VAR's local services muscle. At the end of the day, the national players are in a battle with broadline distributors and national services organizations for the hearts and minds of local VARs. They need to leverage their size and capital to provide VARs with a competitive advantage. This could come in the form of aggregated functions for the backroom or even upfront sales and marketing assistance. Is there value in an Insight-powered VAR?

Give Insight credit for moving to engage some VARs. But all of these national resellers need a more compelling offering. Until that happens, they will find themselves on the outside looking in at the lion's share of the SMB solutions market.

What do you think of Insight's solutions play? Let me know at (781) 839-1221 or via e-mail at [email protected].