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SELLING LINUX: A Rewarding Challenge

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DQC Bureau
New Update

Over the last few years, Linux has grown to become a platform of choice for

big enterprises for creating IT infrastructure. Finally, Linux is moving away

from being an operating system that was used only by geeks, researchers or

students. This signifies a big movement in Linux adoption worldwide.

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This huge momentum of Linux adoption across the spectrum is rapidly

translating in the Indian marketplace as well. This signifies a big opportunity

for Linux, since India has predominantly been a Unix country.

Reliability and scalability have always been strong traits of Linux, but most

Linux users are unanimous about its USP: the low total cost of ownership and

overall value of running Linux in the enterprise.

RIDING

THE LINUX WAVE



It is a known fact that software distribution channel management is a very

critical function for any software vendor as it represents an extended sales

force. This ensures that the product and support is available at the right time,

at the right place and at the right price to customers. Considering the above

scenario, the timing is just right for any VAR/SI/solutions provider/reseller/to

consider riding on the Linux wave.

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The open source model is a very unique, innovative and revolutionary one for

developing software products and solutions. Here the customer benefits from a

global R&D effort–the open source community–that includes millions of

developers across the globe contributing enhancements and innovations to Linux

on a constant basis. Being open source, Linux is freely available along with the

source code to the customers.

HOW TO MAKE MONEY?



There is a new world of opportunities and benefits any channel partner can

get by selling Linux products and solutions.

Today, Linux because of its cost benefits and technology superiority has

become the fastest growing operating system. Channel partners could take benefit

of the increasing popularity of Linux by building a financially viable and a

successful business model based on support and services around the open source

products and technology.

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There are many vendors into Linux distributions like Red Hat, Caldera, Suse

and Mandrake among others. To be successful, these Linux distributors are

relying on strong distribution channel comprising of authorized channel

partners, technology partners, ISV partners and IHV partners.

Red Hat, for instance, has evolved a very successful and viable business

model based on enterprise-class support and services providing a reliable source

and final escalation point for all enterprise customers for their

mission-critical Linux deployments.

Since, Linux has huge cost benefits, it has a very natural and wide

acceptance amongst corporate customers. This provides an area of opportunity to

channel partners to get into a very strong relationship with the customer, in

the process, engaging enterprises to provide value-added services on Linux

products and solutions.

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Moreover, channel partners can add a lot of value to the sales process in

terms of information, availability of products and solutions, and providing

services such as installation and onsite support, which the customers expect

locally.

WHAT PARTNERS CAN LOOK FORWARD TO



Linux distributors provide channel partners an opportunity to replicate the

same business model as their own (that is of support and services), ensuring a

healthy bottomline for his business. This is contrary to the ever increasing

pressure on prices due to competition and shrinking margins in closed source

software sales.

By positioning Linux as a technology with a tremendous price/performance

solution to any IT manager, partners stand to gain instantaneous acceptance as

they address critical concerns of enterprises like costs, robustness,

scalability and availability of universal technology. More importantly, the

customer views channel partners as consultants, which is more fruitful

association.

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Partners get an opportunity to resell any Linux distributor´s comprehensive

support and training services as an additional revenue opportunity, which may

include implementation support, migration support, annual Support contracts,

incident-based support, 24x7 support, remote managed support, high-end

consulting and engineering services and corporate training. This enables the

channel partner to provide an end-to-end solution to the customers with a

limited investment.

In this process, a partner can develop his own internal skills on a

particular Linux distribution and build a similar model for providing basic

support like installation, implementation, onsite support and annual support.

Linux also provides multiple opportunities to cross-sell and up-sell high-end

products and solutions to the same customer. For Linux to be successful, many

Linux distributors are getting into OEM relationships where Linux OS comes

pre-loaded with OEM´s servers and desktops.

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Even availability of enterprise applications on Linux platform is becoming

popular. This provides a huge base of customers for channel partners to provide

support and training services on Linux.

SELECTING THE RIGHT DISTRIBUTOR



While choosing a particular Linux distributor, a channel partner should look

at few critical factors such as product reliability, price/performance, market

leadership, tech support, return on investment, licensing options, training and

certifications, marketing support and field sales support, which is the

cornerstone of any successful channel relationship.

However, the real formula of success in the Linux business is the focus,

determination and strong belief to build a strong and successful model based on

Linux.

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One example of such focus is GT Enterprises, who has built a very innovative

and successful business model on Linux. GT Enterprises started in 1995, with a

goal to serve end-user/resellers with Linux and Linux-related software. It has

grown from a handful of customers to a single-stop shop for Linux and open

source products. It carries over 300 products, 250 manuals and documentation.

Defying the conventional VAR model of handling multiple products from

multiple vendors (increasing the overheads of resources and time), GTE focused

only on Linux as a technology over the last seven years in business. In this

process of hard work and efforts they have been able to create a niche for them

and customers have started associating Linux with GTE as a "single-stop

shop" and an informed source for anything and everything on Linux.

By building similar competencies and portfolio of services around Linux, a

partner can invent new and innovative models in the competitive channel

business. And considering the diverse opportunity areas that Linux offers to the

channels with the increasing rate of corporate adoption, only the sky may be the

limit.

AMIT BHORASKAR is Channel Manager, Red

Hat India

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