For more years than I care to remember the pundits have predicted the demise of ‘third-party’ intermediaries – and nowhere more than in our world of networked business solutions.

 Today’s technology means that communications management is far less dependent on the buyer’s patience and willingness to explain bits and bytes to networking novices and telephonic sales people.   Easy to buy DIY solutions are saving millions in enterprise management man-hours. 

The major network services suppliers have long recognised their need to incentivise ‘Channel Partners’ to reach potential customers; despite cyclical memory loss whenever new managements set their short-term sights on saving money.  Turf wars between account managers and indirect Channel Partners – ‘channel contentions’ –  are rarely managed well.  

But despite easier-to-manage commoditised technologies and the recurrent calls for ‘disintermediation’, the Channel thrives.   For major suppliers channel management may be bothersome but customers now enjoy a far richer choice of specialist solutions providers, systems integrators and management outsourcing ventures. 

Like any other ecosystem the primary reason for sustainability of this species lies in their diversity.  The dynamics of competition and the scope to mix, match and re-meld the components, means that Enterprise customers can look at these Channel Partners not so much as supplier-driven Telco sales reps but as expert customer-focused procurement channels that deliver efficiently managed solutions.   

Much was also written over the past decade about the demise of Enterprise-based Telecoms Managers.  Mostly it was explained as the inevitable consequences of technology convergence.   IT management became ICT management.   Everyone wished to declare their Customer or Solutions focus.  For this new breed of Information and Communications Managers the technology label faded to the background.  Even the regulator is keen to grandstand its ‘technology neutral’ credentials. 

But convergence has not weakened the ecosystem.   Intermediaries exist because Communications Managers need them.   Increasingly we use them to handle the network and systems management and, biggest bonus of all, sort out the hassles (and cost) of dealing with the multi-megabit-players.  The underlying technology platforms may converge and be commoditised but the new differentiators – the things that give Enterprises a competitive edge – are found in the wealth of broadband-enabled hosted applications and expert support services.  

This why the CMA encourages the growth and evolution of the Channel ecosystem and takes care to ensure that regulators and major players alike understand the value that our members place on being able to do business with humanly-scaled expert organisations who have a close understanding of real business needs.   The world has moved on.   When regulators refer to ‘The Industry’ they still, too often, mean only the established Telco and major ISP brands – several rungs short of the complete ladder.  

Our collective dependence on the health and energy of this ecosystem is a two-way street.  Competitive Channel players appreciate the platform provided by the CMA to develop  Enterprise-serving interests.  When you’re making new connections, reciprocity rules. 

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First published networkingPlus September 2006