Channel Conflict Will Increase

Partners, expecially those who have run agencies for multiple decades, tend to agree that vendors behave with them in a more friendly way than ever. 

However, the economic downturn will test that friendliness.

“It’s about to get wild,” one partner told Channel Futures. 

The channel conflict partners have seen varies in its forms. In some cases, it’s the result of a rogue direct sales rep attempting to renew deals behind the partner’s back. In other cases, it’s program-wide changes to cut commissions or give the supplier an out. For example, one cloud communications provider tightened the deadline for partners to close a deal to 60 days before potentially losing out on compensation.

Idris Odutoye, technology advisor at ATA Trusted Advisors, said it remains to be seen how certain providers will modify their existing bonus spiff programs.

For Eric Ludwig, Rise Technology Advisors co-founder, other factors are driving the conflict in addition to the recession. That includes broader margin pressure and M&A, Ludwig said.

But in many technological areas, vendors still see specialized partners as their key route to market. 

“We are seeing growing participation from partners optimizing contact center services, as well as unique security services such as identity and segmentation,” Ludwig said.