The Year's Biggest Channel Stories

The focus on growth. The stock market was swinging wildly and economic indicators left many bewildered, but all eyes were on the solution providers that outpaced average industry growth rates this year. Vendors were especially hungry to understand and analyze the diet of hypergrowth VARs, those growing in excess of 15 percent annually.

The resurgence of HP. With its stock up 29 percent over the past 52 weeks (at press time) and satisfaction scores rising dramatically among partners, HP was the year's biggest story in the channel. The story did not center on Chairman and CEO Mark Hurd but on the company's ability to execute around its channel, sales and product strategies. HP had a near-flawless year, with the kind of stats posted by Yankee slugger Alex Rodriguez. HP finished its year with revenue topping $100 billion, surpassing that of IBM.

The awakening of IBM. Earlier this year, we published a rather controversial story that sent shock waves through IBM. Its hardware performance in the market was coming up short, satisfaction was declining and partners felt it was out of touch with the SMB market. After the story published, IBM's top execs wanted to understand what the company could do to improve its standing. Its efforts culminated in the "Battle of the Blades" with HP at October's XChange event.

Microsoft's new voice. In mid-October, Microsoft jumped headfirst into the market for unified communications with the launch of its Office Communications Server product line and its vision for changing the way we work and conduct business. It was vintage Microsoft, but in a market ripe with opportunity. That Microsoft Chairman Bill Gates granted us an interview was evidence of just how important this launch was to Microsoft and its partners.

Dell's indirect strategy. Someone pinch me because I may still be dreaming. One of the biggest stories of the year was Michael Dell's disclosure that the company generates $9 billion in worldwide revenue from VARs, has a loose collection of 15,000 partners and is serious about launching a channel program. Thus far, the program (based on what we've seen and heard) covers the basics yet lacks the innovation one would expect from a company coming to the table so late. It needs a strong pitch as to why partners would align.

What was this year's biggest story for you?
Contact CMP Channel Vice President/Editorial Director Robert C. DeMarzo at [email protected].