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The Channel Wire
July 17, 2008
Change: v, to make the form, nature, content, future course, etc., of (something) different from what it is or from what it would be if left alone: (Dictionary.com Unabridged (v 1.1). Random House, Inc.)

When is a change not a change? When it's a "clarification." Or a "proactive approach." Or any other Symantec semantics.

In an effort to extinguish a maelstrom of negative publicity surrounding its channel policies and quiet an increasingly angry and disenchanted partner base, Symantec is going heavy on damage control with denials that it is implementing changes to its channel program, taking deals direct or intervening on SMB software subscription renewals.

In a July 16 e-mail to partners viewed by ChannelWeb COO Enrique Salem wrote:

"There has been no shift in our channel strategy. It is important to remember that Symantec's customers have always had the opportunity to buy direct in all of our segments. This is not new."

Yet, in a June 12 meeting with financial analysts, Salem said:

"The other area, as an example of trying to drive improvements on the cost structure, is we made some changes in our channel strategy."

Back to the e-mail from July 16:

"I would also like to reiterate that we have not moved away from a two-tier distribution strategy. We continue to maintain a two-tier distribution strategy and, like many other vendors, we are now allowing our single tier partners to fulfill complex enterprise contracts directly with Symantec to streamline the process for our customers and partners."

And the transcript:

"But as we've built out a very strong direct salesforce where we're heavily engaged with each customer, it doesn't make sense to continue to leverage both a distributor and a partner to serve let's say the seven, eight, 900 largest customers in the world. So those deals will now give the customer the option to go direct."

"The other thing that we'll do is we'll move from a two-tier distribution model to a one-tier for our largest partners. So if you're a platinum partner, you'll have the opportunity to buy direct from Symantec. Because if the distribution channel is not adding value, there's no reason to keep them in the part of the equation."

A similar e-mail viewed by ChannelWeb, sent to Symantec channel partners July 16, also reiterated Salem's denials that the company is changing its channel strategy, going direct or transitioning to a one-tier distribution model at any level.

"We are not changing our channel strategy and taking high-end deals direct. Our sales model for the large enterprise segment is and has been based on customer choice—Symantec's largest enterprise accounts have always had the option to buy direct and we will continue to give them that choice."

"We also maintain a two-tier distribution strategy and, like many other vendors, we have allowed our tier one partners to fulfill complex enterprise contracts directly with Symantec to streamline the process for our customers."

Salem's recent denials that the company embarked on changing its channel distribution policies were initially corroborated by Symantec VP of Global Channels Julie Parrish, in a July 14 e-mail to ChannelWeb.

"We maintain a 2-Tier distribution strategy."

But then Parrish subsequently stated that there was a teensy change that went into effect this year:

"Starting this year, like many other vendors -- we have allowed our Tier 1 partners to fulfill complex enterprise contracts directly with Symantec to streamline the process."

So which is it Symantec? Change or no change? Partners are waiting for the final answer.

Posted by Stefanie Hoffman at 7:43 PM
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