XChange Shows What VARs Worldwide Share

I just got back from CMP Channel Group's first XChange Eastern Europe event, held in Budapest, where we attracted more than 100 solution providers from Russia, Hungary, Poland, The Czech Republic, Slovakia, Slovania, Croatia, Bosnia and Latvia.

ROBERT FALETRA Can be reached at (781) 839-1202 or via e-mail at rfaletra@cmp.com.

When you get past the difficulties the various language barriers presented, requiring us to provide nearly as many different translation services as AMD has chips, there are lots of similarities between what our comrades in Eastern Europe and America face.

Most of the players are a bit smaller than the average-size solution provider here, but they are all running up against the same problems you are. Most don't get the information they need from the vendors they do business with on a consistent enough basis.

One solution provider from Russia told me he meets regularly with the in-country field-sales managers for most of the vendors we had in attendance. That was the good news. The really good news was he learned lots more about what the vendors have to offer through his meetings with them during the show. What shocked him, however, was that the in-country channel managers didn't know about much of what he was learning.

Another similarity between North American and Eastern European VARs is that many of them are looking to partner with other VARs to deliver results to their customers or drive into new markets. One Hungarian VAR I had lunch with was thrilled with the conference because it allowed him to find potential partners in neighboring countries.

Every single solution provider I talked to told me they had never attended a conference that was as structured, disciplined and well-run as XChange. One thing we all take for granted here is the access we have to conferences and information. It's just not as plentiful nor is it readily available in some other parts of the world.

But there are many differences in the Eastern European market as well. Clearly, the technology adoption by businesses is not as developed as it is here. There are far more distributors than we find in North America, and the size of most solution providers is smaller.

Will they eventually see those things change? Well, one would assume that technology will be used in increasing amounts as the market develops. The fact that there are hundreds of distributors in these markets has to lead you to believe they will consolidate. Smaller VARs that have been in business just a few years aren't necessarily going to stay small forever. As they acquire more expertise and experience the chances are they, too, will build stronger businesses.

In the end, VARs worldwide need more information, training, guidance and, yes, they also complain about the margins on the products they sell. Some things don't require translation.

What's do you take for granted in your channel dealings?
make something happen. E-mail CMP Channel Group President Robert Faletra at rfaletra@cmp.com.