Get away with merger - CRN -
[Cached Version]
Published on: 3/4/2004
Last Visited: 10/22/2004
Ken Charman, director for EMEA at instant messaging security vendor FaceTime, takes a darker view of the impact of consolidation on resellers."Fewer vendors on the market means resellers have less choice and fewer opportunities to negotiate a good deal," he says.
Charman also believes that time spent analysing potential partner prospects, as a stab at prevention over cure, is time wasted.
"Forget it.You choose suppliers on the strength of the product offering and marketing support.There is no point wasting time fortune-telling on M&A.If you can do that, go and get a job in the City," he says.
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Charman adds that consolidation in their channel is generally very much encouraged by vendors.
"They want to reduce the number of accounts they deal with," he says.
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From the reseller perspective, Charman adds, acquisitions tend to strengthen the business engine.
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But there are down sides to be borne in mind as well, Charman warns.