Comments on: What ‘net new’ kemosabe? http://itknowledgeexchange.techtarget.com/channel-marker/what-net-new-kemosabe/ A SearchITChannel.com blog Thu, 21 Mar 2013 00:31:55 +0000 hourly 1 By: Pat Colbert http://itknowledgeexchange.techtarget.com/channel-marker/what-net-new-kemosabe/#comment-662 Pat Colbert Mon, 19 Jan 2009 23:09:24 +0000 http://channelmarker.blogs.techtarget.com/2008/11/21/what-net-new-kemosabe/#comment-662 Clearly software vendors with commodity products, like Symantec and Microsoft, have a difficult time paying upgrade fees when they can automate that action and save the margin. Companies like Oracle and CA, however, require a tad more hand holding from partners each year to ensure that upgrades work with other applications/ or training on any enhancements that might be included. I think the price of the upgrade or renewal is probably relative to the work required to support it.

I believe that Software resellers that don’t add value may be out in the cold if there is no reason to pay them for supporting a product that has no upgrade enhancements. However, that being said, commodity vendors need to ensure that there is no hidden cost of support – like phone calls from the customer.

Vendors also need to balance the higher sales cost of selling a commodity product to a new user. Can a reseller afford to be in that business? And, is the vendor paying enough?

Those are some of my thoughts.

]]> By: Dan Blacharski http://itknowledgeexchange.techtarget.com/channel-marker/what-net-new-kemosabe/#comment-661 Dan Blacharski Mon, 24 Nov 2008 16:38:01 +0000 http://channelmarker.blogs.techtarget.com/2008/11/21/what-net-new-kemosabe/#comment-661 I don’t think the jig is up, but as I mentioned in my blog on ITWorld, VARs will be dancing to a different tune. Any business that resists change is doomed to failure. I cite the US auto industry as an example. Resistance to drastic change and a sense of entitlement to the public trough will eventually spell the demise of the US auto industry as a major force. But VARs will be more resilient than the auto industry, simply because they will be forced to change directions, and will survive the recession better than most.

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