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EPICOR GROWS CHANNEL FOR SALES BANDWIDTH

Michael PietriniEpicor’s newly found (how many times is this?) belief in the channel is to use it to help with sales bandwidth as demand grows. That was the message delivered by CFO Michael Pietrini this week at the Cowen & Co. technology conference after he was questioned about why the company isn’t more aggressively cultivating a channel. Pietrini characterized the approach this way: “We have a very strong strategy for rounding out our channel.” He indicated that channel growth may be more needed internationally to deal with sales volume.

But Pietrini didn’t give many details, except to note that partners are being certified, that Epicor has hired “a few more people in the channel organization” and that end users are assured of getting the same level of services as from the vendor, as Epicor is backstopping the channel. He also talked about the problem of channels as being one of loyalty and recalled how Epicor (in 2002 I believe), demanded VARs sell its products exclusively. Pietrini rightly noted that loyalty requirements don't work. In fact, that move killed Epicor's channel. He also might have reflected on Epicor’s heavy-duty channel conflict and unfriendly relationships with VARs in those days. Pietrini said 85 percent of Epicor’s sales are direct. The 15 percent from the channel represents a sharp drop from about four years ago when percentage was in the high 20s and the company  wanted to get to around 30 percent. (It may also reflect Epicor’s purchase of other companies that don't use resellers.) Pietrini  delivered one of the great unintentional quotes of the year about maintenance: “We want to continue to milk our customer. probably the wrong word to use …”
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