Resellers are firing vendors at a clip of one per year

Networking vendor Enterasys Networks announced findings from a global survey of reseller partners on top channel trends, which found 25 per cent of resellers have fired a vendor in the last 12 months.

The survey of 170 global resellers revealed the challenges associated with vendors is the lack of leads produced (42.7 per cent), competition in the channel (33.6 per cent) and poor service and support (31.3 per cent). Additionally, selling integrated solutions is the biggest trend in the channel for 2013 and the majority of respondents (74 per cent) are looking into how BYOD fits into current business models and how to best work with vendors to implement this technology.

According to Enterasys, the company is trying to address the need for integrated solutions, is through the company’s OneFabric Connect SDN, its ground-breaking software defined networking (SDN) offering which provides partners open interoperability with third party applications. This supports the solution sale, and creates an opportunity for partners to build new business models around application integration, which the survey revealed is important for the channel.

Key Findings

  • The top three channel trends for 2013 according to global resellers will be selling integrated solutions (60 per cent), new business models (20 per cent) and industry specialization (9 per cent).
  • Channel partners are looking to support BYOD (74 per cent) and mobility (60 per cent) by examining how these technologies fit with current business models.

Top Channel Challenges with Vendors

In addition to a lack of leads, competition in the channel and poor service and support, channel partners find insufficient profitability or ROI (30 per cent) and the lack of understanding as it relates to business partners (28 per cent) as top challenges.
Adding to the lack of trust experienced by the channel, poor service and support (36 per cent) and unshared business goals or go-to market plans (27 per cent) are cited as reasons for terminating a vendor relationship in the last 12 months.

Bob Noel, director global channel and field marketing, Enterasys said there’s no denying that the IT channel is undergoing a fundamental shift driven by the entrance of new technologies and vendors must be ready to provide partners the necessary support and resources. The most successful vendors will deliver open and interoperable products, transparency and outstanding services and support on a consistent basis.

Vendors will recognize the challenges faced by their channel partners and find ways to alleviate the pain points. These research findings validate Enterasys’ ongoing commitment to delivering on each of these requirements and our ability to enable continued growth and success for our partners.

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Jim Love, Chief Content Officer, IT World Canada

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