On-The-Record with Robert Cohen & Keith Bradley, President Ingram Micro North America 12 July, 2009 By Robert M. Cohen

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Impressed with Keith's input during the Webinar, shortly afterwards, I invited him to join me for a quick OTR interview.

Robert: What are your primary responsibilities as president of Ingram Micro North America?

Keith: I am responsible for the overall performance of Ingram Micro's North American operations. This includes managing the balance sheet, enhancing margins and mitigating risk.

Robert: Where do you think the channel is at?

Keith: It has matured a lot over the last two decades. Today everyone is in a slightly down position & but most of the risk has been taken away by distributors (credit, inventory) and VARs have to pick where they compete.

We need more smart selling. There are lots of pockets of revenue opportunity. VARs have to save cash by reducing their operating expenses.

End users will look at their technology and try not to replace it if it is not broken. The channel has to do a great job at understanding their customers' needs and then selling them the solutions they need. For the most part, SMBs want to see a twelve month or less ROI. Items like video conferencing and virtualization (servers, storage) are exciting because at the end of the day, they lower end-users' costs and provide great solutions.

Robert: How do you know what business end users want?

Keith: Ingram is using analytics to listen to end users and see what they want.

Robert: Why is this important to Ingram if you only sell to channel members?

Keith: Ingram will be coming out with solution sells and pitch books for VARs to use. These will include tips on selling to end users as well as tips for end users. Furthermore, it will tap into technology solutions in areas like disaster recovery, storage, short term projects, etc.

Robert: Where do you see the channel going?

Keith: Some rationalization will take place at the reseller level although we have not seen very many go out of business this year.

Where we are hearing most of the talk is around: SMBs and credit, service offerings and how they can provide a barrier to the risks, new services, and so on.

Some of the niche distribution players may have some significant problems as we move forward, especially if they have areas of focus that see a bad turn. The role of distributors has to expand beyond just pick, pack and ship. Distributors have to have a strong value add.

Robert: What do you think channel members need to do to be more successful?

Keith: Vendors embrace VARs more during upturns in the economy when they need help keeping up with the demand from SMBs. During the downturns Vendors need to rely on VARs for service and support due to the VARs providing Vendors with a better cost model and more business opportunities. Through distribution, VARs also help Vendors minimize credit risk and lower operating costs.

The Vendors work with VARs and need to help them find the best revenue opportunities.

VARs need to find their own core competencies and then leverage it.

Distributors act like the Franchiser and VARs are like the franchisees. VARs can rely on distributors to help aggregate solutions, for tech support, credit, marketing, managed services, proactive revenue generation programs and so on.

Robert: Where do Peer-to-Peer Groups fit in?

Keith: P2P is becoming more and more important. Ingram will be expanding how we do communities. We have VentureTech and SMB Alliance. These networks let us get to know our reseller partners better. We are adding field sales people who will know resellers and their customers. We want to do lots more partnering with VARs.

Robert: Where do the channel trade shows, buying groups and associations fit into the channel ecosystem?

Keith: These things exist largely to drive product cost down. Most VARs have come beyond that. For those VARs that are box pushers that are still focused on pick, pack, ship, price and availability - the trade shows, buying groups and associations are very important. Ingram Micro is more focused on those VARs who have evolved from a product focus and are more into service, support, etc. and want a distributor who can point them in the right direction. These VARs can leverage Ingram for their structure, best practices and so much more.

Robert: Where do you sit on the issue of business solution selling and the need to provide VARs with business education?

Keith: This is the next significant evolution of the channel. Distributors need to assist in this area. VARs can engage at various levels. Overall business knowledge is growing. There is a need to look at verticals and understand the vertical from a business perspective. Distributors need to be able to help with this process. Ingram is going in that direction. We are helping VARs with the structuring of their business, credit issues, business plans & etc. Then we help VARs with putting together the business solutions for their customers.

Robert: Any parting words of wisdom?

Keith: Everyone has to look at the channel more holistically and be prepared to make real improvements. Over time, more Vendors will embrace the channel. Hard times force all of us to make the big changes.

Robert Cohen, a passionate and enthusiastic channel advocate, is the founder of the ChannelLine Advisory Council as well as president and business editor of Integrated mar.com, publishers of Channel Advisor, eChannelLine and ConnectIT. Since 1980 he has worked with 350 IT vendors, distributors and resellers in developing and implementing strategic go-to-market programs, using a variety of direct, channel and hybrid models. Integrated mar.com, in conjunction with Robert has created the Trusted Business Advisor program.

Robert can be reached at 1-800-465-2059 or by email at rcohen@integratedmar.com.