Mind the mid-market gap

Get big or get niche is a familiar strategy in the channel and the same seems to apply to the vendor community.

There are rich pickings to be had at the top end, selling into the large corporates who have the money to expand their technology. Whereas at the other end of the market, vendors like to keep it simple and cheap, creating point solutions that are apt for ‘pile ‘em high, flog ‘em quick’ approaches.

Both models are equally valid, but unfortunately it means that the mid-market is under served. Products from low-end vendors simply can’t scale up or provide the support needed. They don’t provide the required feature set. In comparison high-end vendors find it difficult to scale down their packages in order to offer an attractive price-point.

Yet, in the networking market, we’re seeing a growing demand from more and more medium-sized companies who are looking to implement sophisticated wireless infrastructure and networking solutions in order to maintain a competitive edge in their industry. While at the same time, resellers are moving away from the diminishing returns of ‘flogging tin’, and have their sights set on providing ‘value-add’ consultancy and services.

Often, it is the larger corporations who are gaining the most from innovative technology, while small to medium businesses who are hungry for growth are becoming frustrated that their aspirations are stunted by outdated systems. In order to compete with the giants, SMEs need the most intelligent environment they can get. But all too often they have to take their place in the line before the solution they need comes out at a realistic price point. This can often take years.

This is not always down to supply and demand. More than often the channel is confused about how to sell the product both in terms of its technical capability and how to break it down or package it into the size and price that SMEs require. They do not appreciate the benefits of creating bespoke solutions and building long-term relationships with smaller customers. Resellers need to keep in mind that customers aren’t buying technology, but answers to problems.

Of course it is not just the fault of the channel. Much of the buck stops with the vendors. They aren’t giving the channel the training it needs to cater for the full spectrum of businesses and are only demonstrating the product’s capability in relation to its place in a large network with in-house technical support, rather than its adaptability.

The challenge for vendors is that the mid-market needs all the same high-end functionality as the corporate market (albeit on a smaller scale). So what’s the answer? Well, that’s largely being driven by market economics and we’re seeing a new breed of vendor emerge that is born ‘mid-market’ – i.e. it has invested in developing the required technology but has the right cost-base to keep prices at the right level

So the advice to resellers is to research the market thoroughly and find the right vendor to bridge that mid-market gap.