Finding Hot New Products From Smaller Vendors Is Important Service
After my comments, some informal polling in smaller breakout sessions showed an even split between solution providers who agreed with me and those who disagreed.
While there is little doubt that solution providers can and do build successful businesses focused on a single large vendor, I still think it is hard to argue that diversification of suppliers isn't a less risky approach. If you are a solution provider dedicated to a single vendor and that vendor stumbles badly in terms of keeping pace with technology innovation, trouble for your own business is sure to follow.
But multivendor models do have challenges of their own. For one, diversified solution providers need to be proficient on multiple platforms. This can drain resources and require investments that dedicated solution providers don't have to make.
Still, I believe those investments are worth it. In fact, some customers may be reluctant to deal with solution providers that carry a single line, possibly believing that they are pitching a product not because it is the best one for the job but because it happens to be what they carry.
Solution providers dedicated to a single vendor note that being focused affords them a deeper knowledge of that company's products, and since very large suppliers have so many different products there is ample choice across those lines.
We could debate both sides for years, so let's just agree that both models can and do work but that the multivendor approach carries less risk that any one vendor's mistakes will impact your business.
For the vast majority of you dedicated to multivendor models, one way to stay ahead of the curve and hold on to better margins is to constantly be in search of new technologies.
But how do you do that in an age where distributors are in some cases cutting back on not only the number of customers they deal with but the number of vendors they carry or add?
There are a number of tried and true ways, including distribution, that still play a role. But finding new companies comes down to a willingness to dedicate some time to hunting as well as good old-fashioned footwork.
Glen Jodoin, vice president of operations at Kittery, Maine-based solution provider GreenPages, says that finding and evaluating emerging technologies is a critical value-add for the customer. Jodoin notes it's difficult to find them on your own, and he and others at GreenPages use a variety of methods including XChange conferences to seek them out.
VARs focused on particular verticals or technology initiatives such as storage, compliance, virtualization and so on should encourage their employees to spend some time exploring and understanding everything that is going on in that area. That requires reading trade publications to spot newer companies as well as talking to distributors and other solution providers. This is one area where specialty distributors shine. Those focused on a finite area must spend a great deal of time finding newer players to add to their line cards, so they tend to go deeper into a particular product category out of necessity.
If you believe customers are increasingly going to be looking for best-of-breed multivendor solutions that solve problems in the most efficient and cost-effective way, then it is important to hunt for and find products from more than the traditional set of big-name vendors. After all, isn't that what built this industry in the first place?
Make something happen. I can be reached at (781) 839-1202 or via e-mail at [email protected].