Communication is key to a profitable channel

A knowledgeable reseller can be a valuable source of new business - so why is miscommunication between VARs and vendors still such a problem?

Ever hear the story that during the first world war, a radio message saying, "Send reinforcements, we're going to advance" became "Send three and four-pence, we're going to a dance" at the other end?

Miscommunication is as much of a problem today as it was 85 years ago, whether you look at two people having a telephone conversation or two organisations working together.

For many companies the channel is the vehicle that turns products into profit, and it is therefore a key element of any business strategy. Whether resellers represent the bulk of your business or not, a strong channel is key in the current economic landscape, and every company should try to improve it if necessary.

Whenever a vendor enters a new target industry, introduces a new product or technology, it is important that it educates its channel, because the distributors and resellers will be in part responsible for the success of the new direction.

If a VAR does not understand the pros of 10GB Fibre Channel and how this compares to 10GB Ethernet, how can it advise a prospective client effectively?

An ill-informed reseller could lose out on an order to a competitor because it did not explain how the client could increase productivity with a specific installation.

Your product might be more cost-effective or appropriate but if a lesser solution is presented in a better light an inexperienced customer might choose this option over yours.

It is therefore very important that vendors work closely with partners to ensure both achieve maximum benefit from their relationship. VARs should be brought up to speed with new developments from the start to allow them to understand developments and how they will fit in the portfolio.

What good is it to sit a reseller in a room with a product manager for two days if this is the first time he hears about iSCSI? Experience is built over time and crash courses are no replacement for an ongoing feed of information.

This is especially true now that many VARs are offering services on top of traditional pre- and post-sales support. A knowledgeable reseller can be a substantial source of new business.

The issue is not whether a company's main route to its end users is original equipment manufacturers or resellers. The point is, whether you do 10 or 60 per cent of your business through VARs, they should be strong partners for you.

Paul Trowbridge is marketing director Nordic at Brocade.