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The Channel News Is Coming Fast And Furious Right Now, Bringing Opportunity

By Robert Faletra, CRN
March 10, 2006    3:00 PM ET

ROBERT FALETRA
Can be reached at (781) 839-1202 or via e-mail at rfaletra@cmp.com.
Last week’s column on what value you should place on selling more of one vendor’s products sparked a number of responses from those on both sides of the debate.

As I mentioned last week, there is a lot more to explore on this subject, and I’m sure there will be plenty of developments to use as a springboard to do just that in coming weeks. But with so much going on in the channel right now, I thought I’d hit on a few other issues this week.

First off, while spring is always a hectic time, with many vendors holding their annual channel gatherings, I can’t ever remember a week like this one, in which three top-tier manufacturers such as IBM, Cisco and Intel are all doing so in the same week. All three also have significant announcements to make at their conferences.

Intel is showing signs it believes it will need to engage the channel if it is to fight back against the up-and-coming AMD. Intel President and CEO Paul Otellini, who sat down recently with CRN, is stressing the point that every platform the company is working on has a strong channel aspect to it. In the end, the channel holds more sway than ever over which chip ends up on the desktop and server. Otellini understands and wants to leverage that.

IBM, for its part, is embarking on a major recruitment campaign as first reported on CRN online last week. Channel chief Donn Atkins said the recruitment will cut across a number of areas of the IBM product line and is focused on solution providers servicing the SMB space. Details will be announced at IBM’s partner conference in Las Vegas this week.

In the meantime, longtime IBM veteran Frank Vitagliano is moving on after more than 30 years with the company. I’d say we will miss you in the channel, Frank, but the well-respected leader is slated to take over the worldwide channel reins at Juniper Networks. Frankie V, as Vitagliano is often called, has much to do at Juniper, which is continuing to push its model toward solution providers and away from a direct sales approach. Look for Vitagliano to leverage his relationships with distributors to help drive Juniper sales.

Lenovo is going to bear watching more closely going forward. The company, while still leveraging IBM in many ways, is beginning to build a steady stream of channel news in its own right. The latest came in the form of giving its channel partners an advantage over its inside sales team by allowing partners to discount product that the inside sales team cannot.

We should also expect important news from Cisco, which is inviting its partners to San Diego this week. Cisco is unquestionably one of the true thought leaders in terms of channel programs and engagement, and generally is out front in using its channel program to move solution providers in different directions.

 
‘IBM, Cisco and Intel are all holding their annual channel gatherings in the same week, and all three have significant announcements to make.’
 

Meanwhile, CA channel chief James Hanley made a significant move recently when he announced that the Long Island developer is pulling its direct sales force out of thousands of customers’ shops and turning that business over to the channel. CA had some 12,000 named accounts before the move. Anytime a vendor makes a change like this, it’s a solid sign it is serious about building a stronger channel. CA needs some consistency in the channel. If Hanley can continue to push in the right direction, it could prove to be a real opportunity for the channel, since CA is a company with such a wide product lineup and customer base.

With all this and so much more going on right now, solution providers will have to spend more time reading to keep up with the news or risk missing some big opportunities.

Make something happen, I can be reached at (781) 839-122 or via e-mail at rfaletra@cmp.com


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