May 11, 2009
Siemens: Shifting 75 Percent of Sales to Channel Partners
The VAR Guy
The VAR Guy writes that over the next three years, the Siemens Enterprise Communications Group will work to flow 75 per cent of its overall revenues through the channel.
“Mark Vayda, president of sales for Siemens Enterprise Communicatons (said) that Siemens Enterprise Communications had struggled in recent years because of the company’s unclear ownership status and market position. The new compensation plan was implemented across North America in April 2009, and will be rolled out incrementally across the globe through October 2009 – the start of Siemens Enterprise Communications’ fiscal year.”
“I believe judgment day will arrive in the MSP space within the next 12 to 18 months. Some MSP software providers will attempt to acquire companies and/or get acquired. Software companies that sold thousands or millions of unused software licenses will have a difficult time selling their companies at a healthy valuation.”
“Revenue for the quarter was $664.2 million, a decrease of 42 per cent compared to $1.2 billion during the same period last year. Now the good news: that $664.2 million was an increase of 38 per cent over the previous horrific quarter, when the company pulled in a mere $481.1 million.”