Would you be happier in the Maldives or Riyadh?

The Cisco partner summit was a real meeting of muscle for the Saudi channel last week. Surrounded by the biggest names in the business, Cisco’s channel team put the case forward for developing the business locally. As a veteran (for this region) channel journalist, it was much more interesting to sit down with channel partners such as SBM, Al Jeraisy, and Tuwaiq to ask how they saw their relationship with Cisco today and going forward.

Speaking to one partner off the record, it was clear that while both companies were working closely together more could be done to strengthen channel bonds. As he put it, “there’s no win-win situation in the channel if you’re a partner.” But what pain points do vendors need to address?

There’s no denying that Cisco has put its money where its mouth is in terms of investment in operations and people. With over 200 people, Cisco easily beats off the likes of Oracle and HP who do have less headcount locally. However channel development can be akin to rocket science and it was clear that Cisco, just like the rest of the multinational community, still has some way to go before partners can honestly say that they’ve reached a comfort zone with their vendor colleagues.

One major gripe at present is that of channel resources, but this is mainly due to the skilled labour shortage. It’s not for nothing that Cisco stopped taking partner employees over 18 months ago. However, with the lack of quality resources in the channel there must be a temptation to appoint from partners every now and then despite the best laid plans of vendors and men.

Another point to discuss was margins. With companies such as Cisco having dozens of registered partners fighting it out to win contracts pricing has been a major issue. Meeting corporate sales numbers and balancing partner levels is always a delicate act, but time will tell how Cisco will achieve its targets – and most importantly – without going direct.

While the pay is good, I don’t envy channel management at Cisco. Dealing with partners is a skill that few have in abundance. If you get it wrong, then you’re in big trouble. If you get it right, partners may still not be happy with declining margins. With Cisco moving towards becoming a household name, its channel team has to look at how to best spread the message among consumers, and that will require a significant marketing spend.

Maybe the best idea is to take partners to the Maldives for a channel summit. At least then they’ll enjoy the holiday.