Has dell made the grade in the channel?

While working at EqualLogic, about 2 months before the Dell deal was finalized (and I was to become a Dell'er) I was at a conference where solution providers were giving vendors feedback. There stood a very articulate solution provider who had just given the audience some great feedback on what works and what doesn't when it comes to communications, rebates, margins, and incentives. "And one more thing", he added enthusiastically. "I don't care what they do, I'm NEVER doing business with the four-letter word in channel!"

A gave a little chuckle with the rest of the vendors in the room, then it hit me. Wait! He was talking about me! I was going to be Dell, I was going to be the FOUR-LETTER WORD IN CHANNEL! Over the next 8 months I watched Dell flounder and put forth a very strong channel program. But had the damage already been done? Could Dell dig themselves out of the hole?

Well what do you think? Has Dell made progress? Would love to hear from solution providers.

Are you at Xchange 2009 in New Orleans?

If so I'd love to hear all about it! Comment back here or email me directly and post a "guest review" of the show, the products, or the speakers. Check out their list of top products to see.

I hope some people take part in the Habitat for Humanity rebuilding project on the 11th in New Orleans. Please send notes, comments, and pictures!

Is SaaS Channel an oxymoron?

In my last position I was working for a SaaS vendor that has a legacy premise based product being sold through the channel.  As our SaaS business picked up the channel was going to being selling that product as well.  Stepping away from this business I needed to take a look at how a SaaS based channel product differed from a premise based software or hardware for that matter.

Biggest difference?  MARGIN.  To sell something that has a one time cost of $1M is very different then selling something that has a lifetime cash value of $1M.  How do you incent your partners?  How are they compensated?  There's not much out there about this.  When searching on google the most recent document I found is from 2006.  

Anyone have more information or is doing this right now?

Channel Programs, one size does NOT fit all!

Most channel programs have tiers they put their partners in.  Gold, Platinum, and Diamond or Professional, Advanced, and Super-duper Advanced.  Whatever you call it, just because you have neat little tiers that your solution providers fit into that does not mean those partners all need the same support whether financial, technical, or sales/marketing related.  You've tiered these companies most likely based upon how much revenue they bring you, how many events they attend, whether or not they've bought a demo unit, and how many certified professionals they have with you.  Does that mean you wouldn't give top tiering to a solution provider who has brought you $10M in revenue, has 20 certified professionals, and attends an event a month just because they won't buy a demo unit?  It had better not or you are SO missing the point.  

Solution Providers want a tier that fits THEIR business not yours and as the channel evolves vendors need to start realizing that they need to cater more to their Solution Providers.

How are your tiers set up?  Do you take your partners' business models into account?

Training. To charge or not to charge, that is the question.

Charging for training is something you would do to a customer or client.  So why do so many vendors charge their partners A LOT for training?  I understand that there does need to be that give and take.  Still, I don't see that paying thousands for training exemplifies this.  

If you are being charged by the company administering the training and testing I can see just covering that cost or giving some sort of guarantee that if they don't sell anything in 6 months they will be charged in the future but only to cover the cost, not make a profit.   For the vendors who truly see their solution providers as an extension of their own team, there should be absolutely no training costs.  It would only benefit the vendor if the channel partner actually knew how to sell the product and sell it well.  The other benefit to you is that ostensibly that solution provider is more likely to sell your product then another if barriers to doing so are low.  Two birds, one stone.

Channel Partner; customer, client, partner, or team member?

Different channel organizations treat their partners differently; what do solution providers prefer?  Should solution providers pay for training?  Should everyone in the same tier be treated the same even if they don't need the same support?  What differentiates one program from another and who cares?  Well it turns out that solution providers do...who knew?

Having spoken to many solution providers at last year's Everything Channel Xchange event I saw evidence of the changing tide.  Many vendors used to treat their solution providers as customers or clients because they could.  The SP wanted to be selling that vendor's technology.  Now many SP's, the right SP's, are sought after by vendors but the vendors haven't changed their model.  

How do you treat your channel partners?  Channel partners, how do you want to be treated?