posted 21 August 2001 01:55 PM
In WRB V2 #34 Page 7, Kevin Wilson of AuDeo Systems Ltd states his case for Channel Strategy and the resulting lack of channel motivation as a key reason the conferencing markert has seen limited growth.
What do you think? Click on 'reply' to post your thoughts ....
posted 22 August 2001 11:01 PM
Paul Weston sent in the following reply from Melbourne, Australia
quote: Andrew,
I would like to echo the sentiments expressed by Kevin Wilson from AuDeo in WRB Vol II #34. By over distributing VC product, street pricing is driven down and the profitability of the market sector is severely undermined. Reasonable margins give a reseller the ability to attract the "consultative style" sales reps required to sell VC Applications and allow a greater level of funding for marketing and promotional activity. At this point in time the only cpmpanies making any sort of profit from VC are the Telcos. I would like to see a Wainhouse chart on the ISDN and IP revenues generated by the Telcos and the growth patterns over the last few years. Many resellers are turning to mergers or alliances with carriers in an effort to generate additional revenues from the VC market. From my point of view, if the attention of the channel is diverted into chasing revenues from network commissions this will severly impact the Vendors as NetMeeting or low end devices such as IP Video Phones use the same amount of network/bandwidth as a Pictel/Plcm/Tandberg codec. In other words, if my profits, as a reselle,r are coming mainly from services and network commissions the lowest cost end point becomes attractive as a device to consume Network and MCU services. I hope PLCM are avid readers of Wainhouse as their strategy for the distribution of the Pictel product line post merger, (assmuing it happens), will determine how attractive it is to remain in the "end-point" business.