Strength in numbers: The Partnering Approach

Proof of concept

Peer-to-peer partnerships have saved a deal, rescued a customer in distress or expanded a VAR's reach.

While sometimes partnerships are forced—such as through a government agency's request for proposals—wise solution provider executives continue to be on the lookout for potential partners.

When a Staten Island, N.Y., customer's server crashed at a time when all Third Eye Technologies' engineers were swamped with other work, Alexander called on Jim Fisoli, president of nearby Net Connect, and a longtime ally.

"The important thing was taking care of the client," Alexander said. "After all was said and done, we broke even, and may even have made money. Because Jim told me we'd worry about payment later, we didn't have to spend 2 hours ahead of time negotiating."

Recently, Third Eye tapped the Cisco Systems' expertise of another local solution provider. With the owner away on vacation, payment discussions are on hold. But that is of little concern to Alexander, thanks to the long-standing­ relationship between the two providers.

"I have no idea how much I'm paying for their assistance; there's a confidence on both sides," Alexander said. "My clients don't really care if I'm outsourcing if I'm doing it to fix a problem or it's an emergency. They know I'm ultimately responsible."

Signed and sealed?

Sometimes, solution providers make sure they try to cover everything in writing—documents that detail each company's responsibilities, reimbursement and all other aspects of doing business. Non­disclosure and noncompete agreements are part of the services Ingram Micro provides its partners, according to Robinson.

In April, during their first official meeting, the five members of Consilience discussed money and determined a payment basis for a partner's assistance in a project. The scale, however, is fluid, depending on the depth and complexity of the partner's role, said Biardo.

"So far, everything's a handshake with us, except for the subcontract agreement," said Biardo. "I think that actually says a lot about our level of trust."

Whatever is in black and white, however, is perhaps less important than what never appears on paper: trust and integrity, said Michael Jannery, president and CEO of Entuity, based in New York. "The most important part is to understand how are you and I going to resolve a difference when something not in the contract comes up, when the unforeseen arises."

Of course, not all partnerships succeed. But the vocal solution provider community tends to weed out the unethical, unprofessional or inept, channel and vendor executives agreed.

"VARs will say, 'Don't work with so-and-so because they stink,'" said Sage's Macdonald. "It's a very, very efficient communications network. If you don't live up to your part of the deal, it's not a good place to be."

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Ingram Micro actually has a feedback mechanism in place, said Robinson. To continue to participate in the Service Network, partners must maintain a rating of at least 4.5 out of a possible 5, he said. "Obviously, they're looking for the highest-rated reseller to partner with," said Robinson.

To date, IBM has steered clear of a ranking system, although it is something the company continues to grapple with, said Wong. "Where it's opinion versus fact, you can get into a little bit of [hot water]," he said.

Sometimes, partnerships are so successful that it makes sense for organizations to merge, said David Roberts, senior vice president of sales and channel at Websense, based in San Diego.

"Those kinds of successes have led to some of the consolidation you're seeing in the industry today," he said. "I think you'll continue to see companies with high technical expertise continue to partner and, when it makes sense, to consolidate."

Gut feeling

A number of vars prefer to truly develop relationships with other professionals based on gut feeling, on liking the potential partner's leadership and on sharing less-tangible capabilities such as a similar culture or work ethic.

"The key success factor [with Consilience] is we all like each other and we all like working with each other," said Castle. "I try to find people I don't compete with and people I feel comfortable with. Without trust it really gets a little dicey. Partners have to share a common philosophy, a common methodology and a common culture." Likewise, Alexander prefers to find partners first and opportunities second.

"I always look for the relationship before I look for anything else," he said. "I want to be comfortable with the principal or high-level executive before I outsource something. If I know the people in charge, I know I'll get through any communications glitch we encounter."

Alison Diana is a freelance writer and editor in Merritt Island, Fla. She can be reached at alisondiana@hotmail.com.