'The channel is facing the same challenges as when I started in 1996' - Trend Micro UK MD

Ross Baker claims managing the relationships between vendors and partners is still the primary challenge in the channel

Managing the relationships between vendors, resellers and distributors is still the most important challenge the channel faces, claims Ross Baker, UK VP and MD at Trend Micro.

In an interview with CRN, he explains that the channel is the ultimate relationship and it's constantly tested by events outside of the companies' control.

"I think it's easy to lose sight of the purpose for that relationship, maybe to lean in favour of one party over the other and I appreciate in vendor land, sometimes we're the conductors of that orchestra, and then the orchestra is at the mercy of what we say and do.

"So, for me, that's still the fundamental of any relationship - the purpose and the joint plans that you're working towards."

For this reason, Baker says that consolidation is an opportunity for Trend Micro.

He explains that being able to consolidate partners and customers with one solution, rather than 10 or 15 is the best way for the channel and its customers to save money.

"So the Trend Micro opportunity for us is definitely to consolidate because ultimately, you can save money for everybody doing that. And that's still such an important factor at the moment.

"If we want to make money, of course, we want to make margin if we're in the partner community, but you also ought to save money. That's a dichotomy we've all got to figure out."

Helping partners

Baker explains that in the process of developing a new partner programme, Trend Micro has been working on making things easier for partners - starting from margins.

"From a partner point of view, we're trying to make the margins that the partners make more predictable.

"What we're trying to do with our channel is make the way that they can bid, and the way that they can make margin more predictable.

"We're trying to guarantee margin, so we ask the partner, ‘How much margin are you prepared to give up?'"

"And if we do need to discount the customer, then we'll take our fair share of it to make that business much more predictable."

Some of the updates to the partner programme are also coming from the deal registration side, Baker explains.

"Deal registration is still one of those discussions - one of the hottest topics.

"So, what we're trying to do with our partner programme is create a model where partners and deals should be protected and we're trying to make it a lot more robust.

"We're coming out with some new magic dust that's going to solve the challenge that nobody's thought of, but for us, it's going back to basics and making effort rewarded and business predictable to our partners where every penny counts at the moment."

A channel-first strategy?

Finally, when asked about Dell's move to a a channel-first business model Baker said: "To be honest, it's 2023 and companies are still realising that having a channel-first strategy is the strategy."

"I've only ever known vendors with a channel-first strategy, I've only ever been channel-first myself so for me that bandwagon left the station a long time ago.

"I'm really surprised that that's still considered a new strategy today.

"For me the new strategy has to be how do you solve those customer challenges in partnership with your channel?"