But Edwards' presentation shows the Dynamics world has already lost 12 percent of its active VARs, although the slides did not state what period that covers The channel goes from a pyramid with the fewest VARs at the top and the most at the bottom, to a diamond that's fattest in the middle. The fourth tier of resellers comprises about 70.9 of the total and that will plunge to 28 percent. The third tier is current 19.2 percent of the population and that rises to 37.5 percent while tier two goes from 6.7 percent to 25.2 percent. Edwards shows many small VARs dropping to a "D" level with 20 percent margin and no growth incentives. In another slide, Edwards said many VARs would see margins cut by 50 percent. Many VARs will move down in class as Edwards showed Gold partners dropping from 2,210 to 482 and the number of Silver members going from 1,103 to 578.