The Channel Challenge

The IT channel is always evolving. This is a unique, diverse and broad group of companies. In aggregate they are a powerhouse. Look at how much revenue they are responsible in delivering both products and solutions to the market. They are such a powerful force that even the mighty have changed from a direct model to a blended direct and indirect one. Dell is the most recent entry, even they have shifted a lot of the revenue to indirect – the channel is now delivering over 50% of the revenue for Dell!

Given the importance of the channel, we are initiating a series of conversational pieces that focus on the challenges that the vendors and the channel partners are facing. We are starting with the changing business models, driven by the impact of cloud computing. As expected this will have impact on all types of IT partners. The focus of this piece will be on the resellers.

Criticizing Critiquing the challenges facing the channel today, are our resident grumps analysts, sitting in their peanut gallery (cum ivory tower), Messrs. M and J: