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Vendors maintain that service will primarily enable partners to earn more
revenue. But the latter argue that there is a dearth of technical talent in the
storage industry and want vendors to invest more in training the channel.
Margins dipping due to competition...
Storage is one of the high growth areas in the IT industry today. Customers
are highly sensitized about storage and don't want to take any risks as it
could result in huge losses. Despite this, partners are witnessing a steep drop
in margins due to an increase in the number of players in the market. Partners
are therefore compelled to offer good after-sales support to survive.
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| “There are not enough technically trained people in the industry. Vendors should conduct HR workshops to help partners retain technical talent” |
| Ranjan Chopra, Chairman, Team Computers |
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Shortage of skilled manpower...
While offering good post-sales support is not a bad practice, the problem is
that there are not enough technically skilled people in this country, who really
know the nuances of storage. Demand for good manpower is more than the supply.
Vendors need to get aggressive on training and certification, which would ensure
that there are more qualified people in the storage vertical.
Promotional programs routine activity...
Promotional programs are of great importance, as they are introduced when
vendors feel that margins are low in certain products. These campaigns are
routine activities. It actually acts as a win-win situation for both the
principal and the partner if these programs are designed to perfection. Vendors
should, instead, hand-hold partners, to enable them to retain customers.
Close vendor interaction needed...
We look forward to one-to-one interaction with them on a regular basis.
Moreover, vendors should be sensitive to the fact that since there are very less
technically trained people available in this business, attrition is a key issue
that the channel community is facing. They should organize HR workshops which
would help a partner retains his technical guys.
Certifications shouldn't be too expensive...
Vendors should realize that it is not possible for all partners to go for
certification if it is too expensive. It is the principal's job to ensure that
they charge the partners nominally or provide it free of cost, which would
ensure more participation. With more certified people in the market, employees
will not be tempted to leave their organization. Partners too can get easy
replacements of manpower. But all this is possible only if the vendor's
co-operate and take measures in this regard.
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| “We are investing heavily to train and certify partners, which ensures that they can gain a customer's confidence and earn more through services” |
| Pushpendra Kumar Gupta, Director, Strategic Development, Intercontinental Operations, Legato Software |
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Margins drop as business grows...
When a particular business is on the growth mode, margins for the channel
partners start dipping. This is what is happening in the storage business as
well. Today, storage is one of the high-growth areas, growing at 100% on a
year-on-year basis. For partners complaining that margins are dipping, we have
been constantly saying that it is the after-sales services, which would earn
them the maximum profits.
Regular training sessions...
The competition is getting tougher and we have realized that the more we
train our partners technically, the more beneficial it is going to be for them.
This is precisely why we have regular training program for our partners. We
recognize that only if our partners are profitable, then we will be successful
too. These regular training sessions help partners train as many of their
employees on the latest technology, as possible.
Activities enhance profitability...
Partners who purchase products directly from us earn cooperative marketing
funds monthly based on 3% of net purchases. These funds may only be used for
lead-generation or customer retention activities around Legato solutions as well
as the partners' value-added solutions and services. Moreover, there are
constant promotional programs, which go on around the year and partners can earn
lots of rewards for good performance.
Certification must for growth...
Providing certification is very important for us. Our certification programs
are internationally valid for two years and the partner can renew it after it
gets expired. More partners are going for certification as they realize that
customers' are very selective and would only be secure with somebody who is a
certified person. We have been investing heavily in this exercise and our
storage partners are well trained to give the best support to customers. This
ensures that the customer retention rate increases, thereby boosting their
business.
Training at nominal rates...
We give the best possible margins for partners and constantly train them. We
even make sure that they get trained at nominal charges, as India has been
identified as one of the key markets by Legato. Those partners who want to
purely sell storage products are not going to last long in the market.
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