What Do You See As The Biggest Threat To The Channel?

By Sundar N, Channel Account Manager, Vembu Technologies

Channel partners are continuously exposed to increased competition and difficulties in understanding the exact requirements of SMBs and end users. Before providing services, they should do some groundwork first. Channel partners must conduct more market research and trend analysis. As a vendor for channel partners for certain number of years, we can identify some of the biggest threats to the MSP (managed services provider) channel.

Often, MSPs believe they can sustain themselves in the ever-growing technology market and build their own brand by reselling vendor offerings — for example, reselling a vendor’s product with an option of white labelling. I don't deny the fact some of the vendors provide rebranding options when their business is at nascent stage. Once the vendor directly pitches in to the technology market, this could distort the channel.

Building a brand and using correct marketing activities involves huge manpower. Additionally, the cost of capital expenditure comes with its own set of issues that drive down the MSP channel partner’s profit margins. Their best value proposition could be to offer industry services — not in personal branding as technology vendors. MSP channels should also strategize their businesses in a way that revolves around partnering with vendors who provide the best cost effective technology and support solutions.

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