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EMERGENCE EXPANDS AFFILIATE PROGRAM

Emergence, a Dynamics GP reseller that operates internationally, has become the latest company to take advantage of Microsoft’s move to substantially trim its channel with the expansion of the Emergence affiliate program. The program has operated for four years, according to CEO Hector Negron. And Negron’s comments underscore the issues for Microsoft and its channel. “My No. 1 competitor,” he said, “is cannibalism – other Microsoft partners.”
As with other affiliate programs, Emergence, based in Miami, becomes the Dynamics reseller of record, but Emergence offers a variety of contractual relationships that can enable the participants to maintain a great deal of control over the accounts. The Microsoft dealer program goes into effect October 1 and besides setting certification requirements that push the minimum staff level to about five persons, these extra stipulations would add $15,000 to $20,000 in costs while potentially reducing margins. Emergence operates in several cities in the Caribbean and Latin America. Attempts to aggregate the Microsoft channel are emerging rapidly. Those include Tallan, which is the vehicle chosen by former Tectura COO Jeff Lynn for a roll up, along with an effort from Dynamics Source that is similar to the Emergence program. One Sage VAR said resellers risk losing maintenance revenue and all commissions if they don't hit new license targets. On the Microsoft side, that pressure is likely to escalate as its new program puts more emphasis on new deals in order to hit goals.
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