Partners Wary As Business Objects Expands Services Business

Golden Consulting Group President Ken Dixon said his company, based in Bloomfield, Conn., is picking up subcontracting work and better leads from Business Objects as the vendor expands its services business.

"From where we sit, it's actually a good thing," Dixon said. "They're looking for partners to have more focus on the small-to-midsize companies, and our company is very well-suited to target those customers."

Business Objects' services push comes in the wake of margin revisions that annoyed some partners. Earlier this year, the vendor revised its commission terms and trimmed margin to 5 percent on enterprise deals with customers that have more than $1 billion in annual revenue, according to channel sources.

"Everyone agrees that Business Objects' partners are not commissioned enough for selling its products," said one partner who has worked with the company for more than a decade.

Business Objects spokesman Peter Olson acknowledged that the company adjusted its partner compensation structure but declined to give details. Overall, the company is paying more in partner compensation this year than last, he said, but he didn't dispute the claim that Business Objects has cut margins on enterprise deals.

"On certain deals, [the changes have] reduced our margins," Dunn said. "We're not worried about it, but I do think that new partners might not like it as much."

Golden Consulting's Dixon also was unfazed by the changes. "You always want the highest margins, but you have to look at what's going on overall," he said. "We believe it's the best product set that's out there, and Business Objects has always been very supportive of their partners. They've got a group of inside sales folks that refer opportunities to us in the midmarket, and what's happening now is that the leads are becoming more appropriate for what we can deliver."