Channel Partners Voice Growing Concerns Over OEM Engagement Practices

In the evolving landscape of the IT channel ecosystem, channel partners are increasingly finding themselves at odds with OEMs over key operational and business challenges. While OEMs continue to rely heavily on their partner network to drive growth and reach customers, a growing number of Value-Added Resellers (VARs), System Integrators (SIs), and distributors are raising red flags over engagement practices that hinder long-term collaboration.

The Emerging Pain Points:

Lack of Transparency in Deal Registrations

One of the most pressing concerns voiced by channel partners revolves around non-transparent deal registration processes. Multiple partners report instances where their registered deals were overlooked, delayed, or, worse, bypassed in favor of direct OEM sales teams—resulting in trust erosion and lost revenue opportunities.

“Despite investing time and effort in creating demand, we’ve seen OEMs take the deal direct, undercutting our margins,” shared a leading VAR executive on condition of anonymity.

Shrinking Margins & Price Wars

Aggressive pricing strategies and over-distribution of products have led to shrinking partner margins. Many partners complain that OEMs’ focus on volume sales compromises the profitability of channel players, often leading to cut-throat price wars among partners themselves.

Delayed Incentive Payouts & Rebates

Several partners highlight the delay in incentive payouts and rebate programs, which affects their cash flow and operational stability. Complicated claim processes, lack of clarity on qualification criteria, and inconsistent payment cycles are contributing to partner dissatisfaction.

Limited Support & Training Resources

With rapid technology changes, channel partners expect ongoing enablement, certification programs, and technical support. However, many feel OEMs fall short in equipping them with the latest resources, often prioritizing global directives over local market realities.

Conflict of Interest – Direct vs Channel Sales

Perhaps the most contentious issue is the perceived conflict between OEMs’ direct sales teams and their channel partners. Partners allege that they are often treated as secondary to direct sales initiatives, undermining collaborative efforts and creating mistrust.

Channel Community’s Call to Action

Industry leaders across the partner community are urging OEMs to revisit their partner policies, improve communication, and commit to a more transparent, partner-first approach. Suggestions include:

Fair and clear deal protection mechanisms.

Simplified and timely incentive payout structures.

Enhanced partner enablement programs tailored to specific geographies.

Stronger commitment to a non-conflicting channel vs direct strategy.

OEM Response Needed

While OEMs continue to emphasize the importance of their channel ecosystem in public statements, the mounting frustrations among partners suggest a gap between policy and execution.For the IT channel community, sustainable growth hinges on mutual trust, transparent processes, and aligned goals.