Share The Wealth

The latest economic data would seem to indicate that IT spending is finally coming back. Now the question is, how sustainable is this revival? Most signs would seem to be positive, with tax breaks, a wave of new applications that actually boost productivity and the need to finally replace end-of-lifecycle equipment all combining to drive demand.

Given the current state of morale in the channel as it applies to vendor relationships, good economic news could not have arrived at a better time. The majority of solution providers, as evidenced in CRN channel satisfaction poll results, appear to have become disenchanted with vendor channel programs after two-plus years of a sustained downturn. While nothing improves morale better than winning business, vendors need to apply a little tender loving care to their channel partners now if they want to maximize their potential as the economy recovers.

Solution providers are increasingly fed up with programs that require them to invest in certifications with little hope of getting a return on their investment because the end customer doesn't value certifications. They are fed up with competing with the direct-sales arms of some vendors. They are fed up with bad lead-generation engines that serve to increase their cost of sales following up bad leads. They are fed up with supporting products that have been rushed to market. They are fed up with channel programs that fail to create a level playing field for all vs. the few focused on volume sales. They are fed up with senior industry executives who have little-to-no understanding of the business models of the partners that drive most of their revenue and profits.

All of the above makes the job of vendor channel chief the single toughest management job in the industry. So as the recovery expands, now is the time for executive management to step up and support these people more aggressively than ever. Otherwise, as solution providers with long memories gain more economic muscle in the recovery, they will act on their frustration with some old-fashioned payback. And we all know what payback is.

Are you listening? Do you agree? I can be reached at (516) 562-7477 or via e-mail at [email protected].