MULTI-VENDOR APPROACH

Multi-vendor approach makes more sense...



For a SI offering end-to-end solutions in large enterprises, it makes sense

to work with multiple vendors, rather than sticking to one. However, choosing a

multi-vendor strategy should be in line with the business the partner is into.

For example, providing a complete storage networking solution with the

best-of-breed approach gives the SI a chance to fulfill the customer’s needs

with the most suitable solutions.

"Choosing a multi-vendor strategy should be in line with the business the partner is into" NITIN SHAH MD ALLIED DIGITAL

Customers get a wide choice...



An SI working with only one vendor will not be in a position to offer its

customers the best solutions. In this scenario, a SI would be doing a reactive

selling with whatever they have. Here the fear is that they will not be in a

position to talk technology and will tend to sell on the basis of price and

size. Having a multi-vendor strategy help SIs in presenting the pros and cons of

each brand to the customer while deciding on the budgeting and sizing factors.

Here, positioning the right brand to the customer becomes easier and realistic.

Three principals is the right mix...



To present whatever is the best to customers, every good SI has to work with

at least three vendors who promise flexibility in pre-sales and post-sales

support. While a multi-vendor strategy is a good approach, having more than

three vendors can sometimes be chaotic and difficult to manage.

Small SIs go for single vendor...



Small SIs who do not have the bandwidth to grow with a multi-vendor strategy

should stick to only one vendor, though they will limit their knowledge

offerings. They end up depending on the skills of the pre-sales people of that

single vendor. Any SI who wish to grow as a solutions provider should say no to

a vendor who wants its partners to be more like a trader, while the principal

does the fulfilling. Small SIs should have a clear roadmap of their future and

should be able to map what they want to be after five years.

Some product needs no value addition...



In certain commodity items, partners need not focus on a multi-vendor

strategy. These are products like UPS or network laser printer, where there is

no great technology that needs to be explained to the customer. In such cases,

it is better to go with the leading brands. Also, there is nothing wrong if a

partner decides to have a single brand, if he or she is focused on a specialized

area like security, than on a complete end-to-end enterprise solution.

"Specialized areas requires partners to focus on a particular vendor to provide the best solution from them" AMBARISH DESHPANDE MANAGER - SALES & MARKETING SYMANTEC

Focused partners do well...



From a vendor’s perspective, channel partners taking up multiple vendors

for any particular product category is not a good idea. To make a choice between

whether a channel partner should have a single vendor strategy or a multi-vendor

strategy also depends on the industry one is focused on. Specialized areas like

security solutions, storage or networking solutions requires partners to focus

on a particular vendor to be able to provide the best from them.

Customers may not make the right choice...



A multi-vendor strategy for any channel partner would mean that the partner

is giving the customer a multiple choice, but then by giving more choice you are

selling to the customer what he wants and not what the customer needs. Here the

partner would be doing just the fulfillment than providing the right solution.

At the same time, you will find ten other partners standing with 10 other brands

in the competition.

Have three principals in big market...



However, in big markets, large SIs may find it difficult to remaining loyal

to a single vendor. In this scenario a mix of three vendors is ideal for any

segment that required value addition by the channel partners. Anything more than

three will lead to the same competition of price, where talking about the

technological advancements take a back seat. The partner has to decide with whom

to work with. In our case, we don’t care if the partner is working with more

than one vendor but, while choosing a partner we ensure that our partners gives

a commitment of at least 50% of its revenue selling our products.

Brand loyalty pays in many ways...



Having too many principals is not good for the partner because he/she will

lack focus on any of the brands. Brand loyalty also pays, like the continuous

support that partners can expect from vendor in many ways. It is true that one

may lose out on many account due to this strategy, but the few good customers

that a partner will get will be more money than others. And this is possible

only if the partner is dedicated to a particular vendor and committed to

providing the customers with value additions.

Volume products needs no exclusivity...



It is okay for companies like Adobe or Microsoft to have large number of

partner selling almost every competing products, because here the business is

done on volumes. The products are also such that it does not require much of

value addition to be done to sell them. Same is not the case when you are

selling storage products or security solutions. Any solution that has to be sold

on the basis of value addition should be sold through a specialized and

dedicated partners. That is the reason Symantec today has just 15 partners

across India and not 50.