Panasonic Opens Channel For Rugged Notebooks

Panasonic Computer Solutions Company until July operated with a somewhat closed channel for its Toughbook fully rugged solutions, allowing only authorized solution providers to sell the products. However, the company did grant temporary authorizations to solution providers that approached Panasonic with a sales opportunity. Now the company is letting anyone sell its flagship products.

"We've decided to open up our channel for authorization on our fully rugged and ultramobile products," said Sheila O'Neil, vice president, channel sales, for Panasonic Computer Solutions Company. "We had about a year of discussions and looked at the numbers before we decided to make this decision."

The idea to open the channel was first discussed last year in a meeting with Rance Poehler, Panasonic's president. The discussion focused around the next steps that the company should take. Eventually, Panasonic found that it had nearly three times the number of temporarily authorized partners than it did in its Toughbook Premier Partner Program (TP3), said O'Neil.

"We made the move to make it easier to do business with Panasonic," she said. "The economy didn't force our hand into this."

The company's somewhat newfound openness doesn't mean that Panasonic will stop focusing on its TP3 partners, according to its channel chief. Solution providers who invest their time and business in the Toughbook maker will still be rewarded with better discounts on demo hardware, as well as additional training.

For Paul Zoz, president and CEO of BizCo Technologies, a Lincoln, Neb.-based solution provider, opening up the channel isn't a problem as long as TP3 resellers are still protected.

"I can't foresee any negative aspects of opening the channel," said Zoz. "Some people might worry that during a big refresh everyone might start bidding. My hope then is that rules of engagement will be implemented to protect those resellers driving refresh business."

Panasonic's Rules Of Engagement -- which give partners pricing advantages -- will still only be available to TP3 partners and not the channel at large.

Ben Wilson, co-founder of the Falkor Group, a Chicago-based solution provider, is surprised that Panasonic doesn't have an entirely open channel and thinks the decision makes sense.

"Why would you have a closed channel?" asked Wilson. "Putting more Panasonic hardware in the hands of more resellers should be good for the company. It makes sense."

O'Neil also notes that the move to open the channel on fully rugged products may end up being temporary depending on the results.

"We plan to try [an open channel] for the next six months and then we'll re-evaluate," she said.

For Zoz, further market penetration for Panasonic will ultimately benefit his business as a TP3 reseller because he has no reason to believe that the vendor won't fulfill its word to protect longtime partners while still making the rugged product line an attractive sell to customers.

"It's critical in this competitive [business] environment for resellers who carry the Panasonic flag to know that the manufacturer is behind them and will protect them on margins," said Zoz. "If [we] can't be profitable on a product, people will quit selling it. But when it comes to opening the channel, I'm not worried because Panasonic's been a leader in protecting resellers' margins."