Channel conflict still high but tension is easing

Latest research from CRN's US partner The 2112 Group shows a growing appetite for collaboration and co-selling

Tensions between direct and indirect sales teams are easing, according to a report by CRN’s media partner in the US.

The second annual Channel Conflict Report, carried out across North America by The 2112 Group which owns Channelnomics, said the lessening conflict between IT vendors and their resellers is leading to greater levels of collaboration and revenue productivity.

Although the results of the report were US only, the region tends to mirror feelings on this side of the pond.

Despite finding little change in the level of conflict between IT vendor direct sales and partner indirect sales, it showed a sharp increase in the level of co-selling between vendors and resellers, as well as vendors handing direct sales to their partners for customer fulfilment.

Larry Walsh, chief executive of The 2112 Group, said: “The overall level of channel conflict remains moderate to high. However, value-added resellers and solution providers say they are engaged in more collaborative, mutually beneficial sales activities with their vendors.

“This is a strong indication that vendors are working more closely with partners to uncover and close sales opportunities.” Interestingly, two thirds of reseller respondents said they would de-emphasise their primary vendors in favour of an alternative if conflict were persistent and unresolved.

Walsh added: “The channel understands conflict is a fact of life, and nothing will completely eliminate it. They want to work with vendors in better managing conflict.”

To see a summary of the report, click here.