Up the value chain

10.07.2006

The increasing complexity of solution sales is starting to see a change in the way end-users approach a vendor sales pitch. End-users are beginning to be wary of solution sellers. The pressure to purchase based on a vendor's "sales cycle" as opposed to the end-user's "buy cycle," coupled with increasingly complex pricing, complex contractual negotiations and changing support and maintenance to legacy systems has left a sour taste in the mouth of many end-users.

Shift in focus

Mitchell sees a shift in the focus for VARs. He believes that VARs will become more customer-centric in their dealings with the end-user. The reason for this is twofold.

Firstly, end-users are leaning on the relationships they have with VARs to provide them with better service. They are asking-and expecting-the VAR to be their trusted adviser, to be able to provide them with the best and most cost-effective solution. Secondly, and ironically, VARs will be forced to be the champion for the end-user because of margin squeeze by the vendor. Mitchell said he's seen this occurring in North America and EMEA and is starting to see it happening in Asia-particularly in the more developed markets of Singapore, Hong Kong and Australia.

VARs versus vendors