Some vendors enter the channel thinking that the Channel will create demand for them. That isn’t necessarily so.
In the two biggest channels – Microsoft and Cisco – the demand is created by the vendors. Juniper and ADTRAN get to ride off the tails of that demand if the partner is unhappy with Cisco or it is a price constraint.
Another element is Cisco and MS utilize VADs like Ingram and Tech Data to handle distribution because they don’t want to be bothered with logistics — or to deal with the small business market.
In telecom, Verizon, AT&T and Comcast create demand. The channel just fills it. And luckily working with either ISP is so painful that the customer wants help from the channel.
The big 3 VoIP folks – 8×8, Ring, Vonage – spend money on marketing and branding.
For CLECs and other UC providers, these vendors don’t create demand. The vendors do not have a recognizable name. They hope to be in the mix and win on price or some feature if the partner will just bring them to the show.
These vendors are borrowing on the reputation of the Partner. The partner is recommending the vendor. This is why it is so hard to get the attention of new partners and customers. They are taking a Risk!
It is that piece of the puzzle that most executives fail to understand.
Channel Partners do not create demand, they fulfill demand.