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Challenging the Channel

In today's economy, the vendor channel partner (whom most enterprises must deal with) has to ensure that they retain the existing customers besides gaining new business. This condition can be an advantage for the enterprise.Enterprises are trying to control costs as well as introduce new technologies that improve productivity, provide better customer service and comply with the increasing number of legislative and regulatory requirements. The channel should be proactive in supporting these enterprise goals. The enterprise should use the resources of the channel to augment the staff of the enterprise.

If the channel is to be proactive with the enterprise ICT departments, then the channel should be offering alternatives and innovative solutions. Therefore the enterprise should push the channel to offer more ideas that will help the enterprise. Look for the channel to propose ideas first. This will be one measure of the channel's desire to retain the enterprise as a customer. If the enterprise has to promote the ideas, then the enterprise should question whether the channel really wants to support the enterprise.

Here are some ides that the enterprise might wish to pursue with the channel:

* Channels want the enterprise to buy into UC. Have the channel arrange collaboration technologies such as voice and video conferencing, IM, e-mail and presence features for the mutual use of the enterprise ICT staff and the channel staff. This should improve the collaboration between the two organizations.

* The channels can provide multiple financing options for new hardware and software. Leasing options for hardware, especially servers, are very attractive. Many enterprises lease the servers for 3 years so that they can take advantage of the improving server technologies. Have the channel do a thorough lease vs. purchase analysis on all future acquisitions.

* Another attractive financing option is financing the software subscription for IPT and UC systems. The software subscription prepays for the bug fixes and enhanced features and function that will be delivered in the future.

Some vendors offer 1 year software subscriptions which cost less. However, the next year's software subscription may increase in cost by 8% to 12%. One way to control this cost escalation is to purchase a 3 to 5 year software subscription. This prepayment will have to be paid in advance, in the first year of the new system. This can be as much as 20% of the budget.

Some channels can now arrange a time payment plan. The channel charge the software subscription in three one year payments. This eliminates the possible inflationary cost of a one year software subscription while reducing the impact to the first year's budget.

* Have the channel look at the balance of enterprise technology management vs. managed service contracts. What balance offers the best financial advantage to the enterprise?

* Ask the channel to investigate the enterprise ICT operations for systems, software and staffing that may produce savings that can be used for new projects that the channel can support.

* If there are projects in process, ensure that the financial and progress reporting is timely and accurate to ensure that cost changes can be anticipated and controlled before the problem becomes large.

* Ask the channel to dispose of the retired ICT technologies. The enterprise may even receive some funds from the channel resulting from the resale of the retired technologies that can be used for new projects.

* Have the channel look at existing and new technologies over a 3 year period. A longer period may demonstrate greater value, but there is always the possibility that new technology will obsolete the existing technologies in less than 5 years. A 5 year operational period may look good but may also lock in the technologies for longer than the would be desirable.

* The channel should be up to date on the effect of new legislative and regulatory requirments. Have the channel provide detailed information on the impact of the requirements in planning the future of ICT systems.

* The enterprise will also have the same goal as the channel, retaining the enterprise's customer base. Customer relationship technologies keep expanding, especially with new mobile devices and services and social networking. The channel should be able to demonstrate how these can be used to effectively improve customer relations.

The channel wants your business. In good economic times, expanding the channel's business is the primary goal. In leaner times, the channel needs to focus more on customer retention. This is the time for the enterprise to push the channel for more support, especially free advice and analysis. Make the channel work for you. If the channel responds poorly, then question whether this channel is right for your enterprise.