Novell has pledged that savings from dealing direct with its top-tier resellers will be reinvested in channel development.
The company has offered its 25 top-tier UK resellers, which are called Business Experts, the ability to buy direct. Although this will not affect the price resellers pay Novell, it will reduce distribution costs, according to Patrick O'Connor, channel sales and strategic relationship director at Novell.
He said the money saved by Novell will be reinvested in reseller programmes, such as boosting the vendor's channel team. A larger channel support team will be increasingly important to Novell because sales are becoming more and more complex, O'Connor added.
Novell also wants to invest money in training the channel to meet customer needs. O'Connor said: "Over the past 12 months our consultancy services have been stretched, and rather than increasing our own capabilities we want to train resellers."
Everybody will benefit, he claimed. Business Experts will move up the value chain and other resellers will receive more support, following further investment. Novell has more than 800 resellers in the UK.
Steve Derbyshire, managing director of Novell Business Expert Telamon, said the reseller was considering Novell's offer of buying direct. "If Novell has the right level of support and it does not damage our relationships with distributors for other products we will probably take it up," he said.
"We usually deal direct with Novell on big deals anyway, but then we have to buy through distribution."
Kevin Vine, director of networking services at Ingram Micro, said he was disappointed by Novell's move. However, he said: "If it pushes the savings back into the channel it will benefit everybody."
Reacting to Novell's move to bypass distributors for top-tier VARs, Vine said: "We'll see [the scheme's success] when the number of Business Experts that migrate [to direct] is available."
Telco also announced series of initiatives to drive digital growth in the UK
Nana Baffour opens up on Getronics' mammoth acquisition of Pomeroy
Analyst predicts SaaS will remain the dominant segment in the market as it grows 17 per cent in 2019
NSS Labs claims vendors are refusing to have their products tested effectively and are trying to restrict its access