By working with the channel we can offer local delivery and locally stocked hardware

Hughes Communications is creating a channel network, which will carry out

delivery, installation and maintenance of its enterprise solutions as well.

Krishna elaborated about the company's business offerings and channel strategies

Brief us on Hughes Communications' business offerings.



We have four business divisions, all of which go through the channel in one

way or the other. The first two cater to large enterprises and smaller

enterprises.

We also have an education sales division, which is a franchisee-based model

where we have tie-ups with educational institutions like XLRI and IIM and we

take their management programs through the retail level for the premium

education market. The last division is called Fusion, where we take Internet

education packages to non-metro markets in a kiosk-based model.

How do you work with the channel in the enterprise and the SME space?



On the enterprise space, our predominant model has been direct sales and not

through the channel. But recently, we have noticed that in order to bring in

operational efficiency, we need to work with the channel. By working with the

channel we can become more customer friendly by offering local delivery and

locally stocked hardware. We can also exercise options like rental. We are

trying to spread into the channel environment with partners who will look after

fulfillment.

So how does the enterprise customer acquisition take place? Is the channel

involved in that or is it handled entirely by your direct sales team?



There are 300 named enterprise accounts where there are direct sales

engagement. But the customer might say that he/she wants installations across

several sites all over the country. Earlier, we would ship this from our central

stocking facility and carry out the installation and maintenance ourselves.

While doing this we would get into a lot of problems related to road permits and

local issues.

Working with a channel partner will help us tackle these issues. We are

talking to some large systems integrators (SIs) like HP or CMS, who will help us

to carry out quicker deliveries.

In the SME division, we work with the tier-2 channel partners and we will

expand that network because we want to tap into a larger base of SMB and even

single site SOHO customers.

What does your company offer its channel partners?



We work with a channel network that is not into hardware sales predominantly

but offer services as well. Our partners carry out the entire sales engagement

like customer identification, sales engage­ment, fulfillment and maintenance.

We also do not work with the traditional IT channel who are used to high

turnover and low margins. Instead we work with partners who can offer

connectivity solution, because our products do not need the seller to be very

tech savvy. Most of our partners have 70 percent of their revenues coming from

our business.

VINITA BHATIA



vinitavs@cybermedia.co.in