The Emerging Rule

This year's CRN Emerging Vendor list, which features a record-breaking 178 vendors, is a sign of the entrepreneurial spirit that makes the fast-moving technology business the most exciting and vital of all. There are more companies than ever before that are delivering a better mousetrap and are hungry for resellers to push their products into businesses.

If you want an example of just how far short the big boys fall when it comes to delivering cost-effective solutions, check out our cover story on how a former Cisco global- account-executive-turned-wireless-solution provider made mincemeat out of his old company with a cutting-edge solution from Ruckus Wireless. Bottom line: The Cisco solution came in at four times the cost of the more reliable Ruckus solution. And with the high price of Cisco maintenance, the total cost of ownership on the Cisco solution came in at a whopping $43,795 vs. $13,950 for the Ruckus solution. No wonder Cisco refused to comment on the head-to-head comparison with Ruckus.

When you have these kinds of cost and solution differences, you are doing your customers a disservice if you do not offer them a choice. The smartest solution providers offer their customers what amounts to three separate bids: the emerging vendor Ferrari bid with best-in-class technology and pricing; the midtier vendor bid offering better price and performance than the market leader; and the Rolls Royce market-leader, high-priced bid. Solution providers that stick exclusively with the high-priced, market-leader approach are cutting off their nose to spite their face.

Those that want to view just how quickly a big vendor- solution provider relationship can go south should read the story "VAR Sues Cisco Claiming Contract Breaches" at www.channelweb.com. Needless to say, it's not a pretty picture. And it has caused quite a debate online, with more than a few solution providers noting they are staking their future on emerging vendors rather than sticking with the big guns. Remember our emerging vendor rule: No CIO ever got fired for buying only Cisco or IBM. But there are more than a few solution providers that saw their business go down the tubes with that strategy.

Are you offering your customers three bids?
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