Value-add today… but maybe not tomorrow?

A Solutions Provider (SP) is similar to a value-added reseller (VAR) which is a company that adds features to an existing product and then resells it to end users as an integrated product or complete “turn-key” solution. A Solutions Partner for example, might bundle a software application with supplied hardware or the value may come from professional services such as integrating, customizing, consulting, training and implementation that is designed for the customer’s needs which is then offered or resold as a new package.

Customers would purchase services from a Solutions provider if they or the carrier lacks the time, experience, or expertise to assemble, manage, or implement the system themselves. The goal of the strategic partnership between the carrier and Solutions Partner inherently brings the carrier more business or in some cases sustains the business they currently have.

The Solutions Partner can also partner with multiple vendors, helping the client when deciding which solution is truly best for their unique environment rather than trusting each vendor who believes their solution is best when it may not be the case. This is a customer decision.

Carriers and Solution Partners are sales organizations, so the relationship with the Solutions partner must be one of trust and not an adversarial relationship to truly be effective. When the value-add of the carrier and the solutions partner is the same, then they are competitors. For a value add to be effective it must compliment or have a necessary value to the client. Again, this is a customer decision.

At times, and based on a number of reasons, a Carrier decides that a solution partners expertise, experience, and value is no longer needed or the increased strength and capacity to provide customers well balanced solutions is no longer needed. When this happens, does the Carrier gain by closing the doors and providing only value that is produced internally? Do they loose any true value-add and limit the customer’s options in any way, or does the carrier push the solution partner to shift their efforts and provide value-add to their competitors?

In the end, the customer will make that decision.

By William (Bill) Norton