Mind the mid-market gap

Ian Holt, country manager UK and Ireland at LANCOM Systems, explains why the network systems vendor community has failed the channel

Written by Ian Holt

Get big or get niche is a familiar strategy in the channel and the same seems to apply to the vendor community.

There are rich pickings to be had at the top end, selling into the large corporates who have the money to expand their technology. Whereas at the other end of the market, vendors like to keep it simple and cheap, creating point solutions that are apt for ‘pile ‘em high, flog ‘em quick’ approaches.

Both models are equally valid, but unfortunately it means that the mid-market is under served. Products from low-end vendors simply can’t scale up or provide the support needed. They don’t provide the required feature set. In comparison high-end vendors find it difficult to scale down their packages in order to offer an attractive price-point.

Yet, in the networking market, we’re seeing a growing demand from more and more medium-sized companies who are looking to implement sophisticated wireless infrastructure and networking solutions in order to maintain a competitive edge in their industry. While at the same time, resellers are moving away from the diminishing returns of ‘flogging tin’, and have their sights set on providing ‘value-add’ consultancy and services.

Often, it is the larger corporations who are gaining the most from innovative technology, while small to medium businesses who are hungry for growth are becoming frustrated that their aspirations are stunted by outdated systems. In order to compete with the giants, SMEs need the most intelligent environment they can get. But all too often they have to take their place in the line before the solution they need comes out at a realistic price point. This can often take years.

This is not always down to supply and demand. More than often the channel is confused about how to sell the product both in terms of its technical capability and how to break it down or package it into the size and price that SMEs require. They do not appreciate the benefits of creating bespoke solutions and building long-term relationships with smaller customers. Resellers need to keep in mind that customers aren’t buying technology, but answers to problems.

Of course it is not just the fault of the channel. Much of the buck stops with the vendors. They aren’t giving the channel the training it needs to cater for the full spectrum of businesses and are only demonstrating the product’s capability in relation to its place in a large network with in-house technical support, rather than its adaptability.

The challenge for vendors is that the mid-market needs all the same high-end functionality as the corporate market (albeit on a smaller scale). So what’s the answer? Well, that’s largely being driven by market economics and we’re seeing a new breed of vendor emerge that is born ‘mid-market’ – i.e. it has invested in developing the required technology but has the right cost-base to keep prices at the right level

So the advice to resellers is to research the market thoroughly and find the right vendor to bridge that mid-market gap.

reader comments

related articles

 

Sun turns storage focus onto SMEs

Sun to improve channel relations by its expanding portfolio 01 Oct 2007

Sustainable strategies deliver financial results

New report highlights significant correlation between environmental performance and financial success 01 Feb 2008

vnunet.com comment: Clive Longbottom's predictions for 2008

A year of changing priorities 08 Jan 2008

today's top stories

Analysis: The true cost of printing

Organisations need to get a better sense of how much they spend on printing before finding ways to reduce it 05 Sep 2008

Computing podcast 4 September 2008

Find out what Michael Dell told Computing, and listen to our take on the latest browser wars 04 Sep 2008

Looking to the future - exclusive Michael Dell interview

Dell's chief executive talks to Computing about the way the company continues to adapt to major changes in the industry 04 Sep 2008

Interview: Delivering power where it's needed at Betfair

The online gambling firm is putting its money on grid computing and virtualisation to underpin global expansion 04 Sep 2008

E-paper displays are an open book

A display revolution is on the way - but only once the user interface issues are solved 04 Sep 2008

Most commented stories

Advertisement

Newsletter signup

Sign up for our range of FREE newsletters:

Existing User

Newsletter user login:

Jobs

Related jobs

Job of the week

Job alerts

Sign up here

Find your next job

Advertisement

White papers

Search white papers

Top categories

VPN, Extranet and Intranet Solutions

WAN/ LAN Solutions

Network Security

Interoperability-Connectivity

Grid/ Utility Computing

Latest poll

Would you use a mobile phone as an alternative to cash?

Would you use a mobile phone as an alternative to cash?

When mobile phones include inbuilt payment technology - would you use one instead of cash?

Previous poll results

Latest audio and video articles

BlackBerry BoldVideo

Video Review: BlackBerry Bold

Technology editor Daniel Robinson takes a hands-on look at the latest device from Research in Motion 01 Sep 2008

Podcast imageAudio

Computing podcast 4 September 2008

Find out what Michael Dell told Computing, and listen to our take on the latest browser wars 04 Sep 2008

Latest in-depth articles

A meetingAnalysis

Turning adversity into an advantage

IT chiefs under pressure to make cost cuts can turn the situation to their benefit 04 Sep 2008

CloudAnalysis

How to introduce cloud computing into your organisation

Best practice advice from Forrester Research 04 Sep 2008

Primary Navigation