small vs. large partner issue too
Also, many channel execs only pay attention to their larger partners and consider small partners like unwanted step-children. And there are still quite a few channel execs who stil don't get just how fragmented the channel is. One size will never fit all.
Managers need to well... manage!
Dan, It's not just a monitoring and access-control issue. The reality is most managers that have employees who abuse company resources like this are asleep at the wheel. If employees have no other mesasures of accountability, productivity, and results other than having their butts physically attached to the base of their office chairs, who's to blame?!?
The Office tv sitcom actually tackled this issue a few weeks ago, as a result of Michael Scott's ethics "workshop". Next thing you knew, Jim was following Dwight around with a stopwatch. And Dwight never even left his desk for the men's room.
I've always half-jokingly thought that the World should try operating as "consultants" for a week, where they have to account for billable (most productive) vs. non-billable hours (less/lease productive).
old ways vs. new ways
Dan, One big issue that is about to be driven-home, in a very big way...
Selling to new client accounts vs. maintaining existing client accounts on ongoing support agreements
For those VARs that depended heavily on selling new projects all the time, with little or no recurring revenue, the outlook isn't good.
For those VARs that built up a nice base of clients on ongoing monthly recurring service agreement arrangements, the next 3-6 months will be a LOT easier.
In these times though, there are some very nice clean-up jobs... that can turn into clients on ongoing monthly recurring service agreement arrangements.
As VARs suddenly drop-off the map, what happens to their "orphaned" clients?
Be the superhero riding in to save the day, and you'll get some very loyal new clients.
Also don't forget... the demise and consolidation in the financial services industry will lead to many out-of-work IT staffers starting their own businesses... many in IT related fields.
As someone who spent almost
As someone who spent almost 2 years in a corporate IT position at Merrill Lynch in the mid 1990's, I can assure you that at least some of those about to be layed off will inevitably end up launching their own IT consulting companies. But the more basic issue... ROI-focused IT projects are usually the last thing to go. When a $250K software rollout potentially replaces $1M/year in salaries, you'd have to be pretty stubborn to say no.
C'mon... does anyone outside
C'mon... does anyone outside of Round Rock really believe that Dell can keep its hands off the SMB space? Dell has such a long history of alternating between playing hardball and "making nice" with the channel. Which bipolar strategy will it be this quarter?!?
Wouldn't it just be "easier"
Wouldn't it just be "easier" for Ballmer if Microsoft were to acquire Dell?
Yes, Dan we've seen the same
Yes, Dan we've seen the same thing anecdotally in this segment.
The problem is...
The skill-sets and more complex sales cycle required to engage with the mid-market, where there's an IT department, are SO very different from engaging with the small business segment where the channel partner IS their IT department.
Then you have enterprise SP's who scoff at the relatively "small" project sizes down in the mid-market.
You almost need to be the "goldilocks" of SP's to get it right.
As always, ROI is the real
As always, ROI is the real driver.
If you're pitching a $50K project that'll save your client $150K/year in operating expenses, most rational decision makers have a hard time putting off such a slam-dunk.
It makes perfect sense that
It makes perfect sense that the SP/channel would have a labor shortage that runs counter to the overall IT labor market.
Remember why many decision makers turn to the channel in the first place...
specialized skills
unique problem solving capabilities
lower overall cost structure
ahead of the curve
resourcefulness
etc.
Small partners vs. larger partners
Hi Joel,
What's the early buzz on whether there are disparities between the pricing levels available to smaller partners vs. larger partners?
Or are the pricing levels strictly a function of the client size that you're selling into?
Thanks for the heads up.