As PeopleSoft Canada readies PeopleTools 8.44 for the market, it is also bolstering its channel partner base.
Andy Aicklen, vice-president and managing director of PeopleSoft Canada, said his operation is working on a new channel program and will add two or three new partners to its list of five.
He
also admitted that there are not enough resellers in the subsidiary’s current crop to adequately cover the
market in Canada and that more are needed.
“”Before we acquired J.D. Edwards, there was nothing really going on there (building a channel base for PeopleSoft Canada). We were focusing more on alliances. After the acquisition, we owned this channel. So what are we going to do with it? Are we going to grow it? Are we going to let it stay the way it is or are we going to kill it? Well, we are not going to kill it. I looked at half of a dozen of those partners and they are in places we would never be in,”” he said.
Gary Gray, a former J.D. Edwards Canada executive, and Aicklen are formulating the new channel plan that could be announced sometime in May. The new plan will have a mid-enterprise focus and will include special incentives, lead generation and educational programs.
Warren Shiau, software analyst at IDC Canada, said PeopleSoft Canada understands that it cannot be direct and have success in the mid-market.
“”To go to the channel is obvious,”” Shiau said.
“”They were trying to establish a reputation for PeopleSoft Canada in the mid-market and then they get J.D. Edwards and a channel. J.D. Edwards has a great reputation as well. A lot of it was very fortuitous for PeopleSoft Canada, but it jelled together very well.””
With the addition of two or three new partners, PeopleSoft Canada would still have fewer than 10 partners in Canada. Aicklen sees his channel landscape changing within the next six to 18 months and he realizes his competitors are recruiting as well.
“”If you tried to add six more (partners) right away we could not give them the focus needed. I want to nurture and grow each one. I know the competition is talking to them, but I have to make sure we have the right ones and I think we do.””
Margins will be a factor going forward. Aicklen would not divulge exactly how much margins partners will get, except to say they will not be “”quick 20 pointers.””
“”Lets face it, when I ran my business I was looking for 50 per cent margins and I would shoot for 60. I think the number depends on how independent that company is. So if they work from discovery to contract signing I have no trouble giving them 50 per cent right there. If they are going to use (several PeopleSoft resources) and the CEO calls me everyday and we are really involved, I am not so sure that is worth more than 30 per cent because the cost of that sale to PeopleSoft is worth a lot of money,”” Aicklen said.
