The Value of the Channel

Suppliers often question the value of the channel. Why not just sell direct and make more money? Google’s new Nexus One phone offering highlights the value of the channel. Google’s direct-only sales appear less than stellar. The reason – no place for customers to go for support. This is very problematic given the complexities of the new Android operating system. Next time, Google, might sell more and make more money by paying for the value add of the channel.

Cloud brings destructive channel pricing conflict for Microsoft partners.

In response to low online business software pricing by amazon,com and Google, Microsoft is offering direct pricing that makes it virtually impossible for partners to compete. The question is what does Microsoft need from its partners? Pricing that eliminates channel compensation suggests that partners add no value on behalf of their supplier. Read about it in Redmond Channel Partner Online.

First post written exclusively on Droid

SAP Volume Discounts

Interesting article by Helmuth Gumbel in Information Week about SAP’s volume discounting practices and efforts to lock in large accounts. SAP appears to be adjusting to the economic climate by reducing up-front payments from large customers and using the same strategy to go after smaller accounts.

Read the article here