Var contracts - Discount cuts provoke Autodesk VARs

Autodesk VARs reacted angrily to news last week that distributor Datech 2000 plans to cut marketing development funds and VAR discounts on certain Autodesk products.

Autodesk VARs reacted angrily to news last week that distributor Datech 2000 plans to cut marketing development funds and VAR discounts on certain Autodesk products.

Simon Weeks, a director at Computer 2000 who is in charge of the Datech 2000 division, would not give details of the changes but claimed that the cuts in discounts had been brought about by adjustments in terms and conditions from Autodesk.

Weeks said that Autodesk had moved beyond the original AutoCAD product, and was now "acutely encouraging" VARs to do the same.

"Autodesk wants VARs to move away from offering the vanilla flavour of AutoCAD. VARs that have ignored the calls to focus on a specific market will only have heard bad news for the past few years," Weeks said.

"The discount cuts may encourage some VARs to ask themselves if it is worth doing business at this level."

One Autodesk reseller, that asked not to be named, was horrified at the changes. A representative said: "The online store (CRN, 8 December) was the last nail in the coffin. It was obvious to us then that Autodesk believes that its products have crossed the chasm and are good enough to sell themselves.

They are chopping discounts to squeeze us out."

Tariq Mahmood, director at Autodesk-authorised VAR Teeside Cad Services, agreed that Autodesk was attempting to "get rid of low-end dealers".

"It is becoming harder to compete, because Autodesk wants to concentrate on the large system centre partners," he said.

Autodesk claimed the changes to some contracts have taken place because of market pressures.

Najeeb Khan, territory sales manager at Autodesk, said the company's financial year end, which falls on 31 January, had led to different targets and higher expectation levels.

He said: "The changes have been driven by the market and the customer.

The impact on VARs will depend on where they sit in the market. We want VARs to concentrate on the best areas for growth. If we focused efforts on one county, one town or one reseller we would lack leadership. We are looking at the bigger picture."