More Fertile Ground

Slowly but surely vendors are realizing that distributors' value doesn't just lie in logistics and financing expertise but also in their ability to connect them with the smaller VARs and resellers that many vendors can't be bothered to deal with directly.

That's nothing new, you say. That may be so, but the main difference today is that some smart vendors are rethinking their programs to recognize that invaluable contribution.

Cisco Systems is one such vendor. Through its self-proclaimed Project Disti, Cisco has already worked on better synchronizing its back-end systems with those of its three primary U.S. distributors, Tech Data, Ingram Micro and Westcon. Cisco's recent deal with Tech Data, under which the distributor will deliver advanced configuration services to smaller solution providers that haven't had a chance to invest in that capability themselves, is likely a harbinger of similar pacts. But a different sort of effort being undertaken this week by Ingram Micro on behalf of Cisco ISVs points to an even more telling shift in how vendors will think about their distribution partners in the future.

Under its new ISV program, Ingram Micro plans to help Cisco partners that have written software applications for its IP telephony infrastructure, among other things, link up with more traditional Cisco resellers and network integrators. Ingram's new program will also extend to its relationship with IBM. And look for Intel to adopt creative practices of its own when it comes to rewarding distribution partners that keep it out of the gray market and help it win mind share and market share in key vertical markets.

Specialty distributor Alternative Technology offers additional evidence that distributors have much more to offer than pick, pack and ship services. Its unique system of rewarding loyal customers enables smaller VARs to test new markets in which they may not otherwise have been able to invest. That may not sit right with VARs that have bet more than a buck or two on training for an emerging technology. But in the larger scheme of things, Alternative's strategy helps grow new markets. And isn't that what we're all looking for these days?

Are you a distribution skeptic or advocate? HEATHER CLANCY, Editor at CRN, appreciates your feedback at [email protected].