In Your Own Words: VARs Reveal the Pros And Cons of Channel Programs

Solution providers who hitch their wagons to vendors that are alternatives to market leaders in any given technology category have found they get more attentive support, often better products and, more than likely, higher margins. But they're also at a higher risk of experiencing problems, particularly with the smaller alternative players.

That was the consensus during a panel discussion at CMP's XChange conference last month. Ninety-eight percent of all solution providers offer products that are alternatives to the market leaders, according to recent VARBusiness research. Of those, 39 percent plan to significantly increase the amount of alternative brands and products they offer, while 56 percent plan to keep their investments the same.

"We are a small company. If I have to buy a product that SonicWall has vs. one that Cisco has, I'm going to be able to talk to people who are going to pay attention to me," said Pat Walsh, president of Longwood, Fla.-based Computer Station, and one of the panelists. "I don't have to buy $50,000 worth of SonicWall products to get what I need, nor are they going to kill me with certifications. I don't know why I wouldn't do that."

There are numerous reasons solution providers go with alternative vendors, the key reasons being they are able to provide a more varied offering, better technology and recognize the need to stay ahead of the competition. Improved margins are also key, said panelist Eydie Worley, marketing director of PCUniverse in Boca Raton, Fla.

"You've got to look at the margin opportunity with an alternative as opposed to a market leader," Worley says. "There is a whole process before you select an alternative vendor in terms of the quality of their product, their road map and their whole product offering."

Both panelists agreed that the process of evaluating vendors can be relatively quick, unless there are numerous players involved. Thorough testing of products is also advisable before bringing them to market, they said.

--J.S.