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2112 Study: 1/3 of Vendors Will Compromise Their Channel Partners’ Sales

The new 2112 Channel Conflict Report finds technology vendors will usurp their channel partners’ sales if given the chance, and more than half of vendors are the source of channel conflict.

Port Washington, NY, May 23, 2012 --( Technology vendors often speak of their commitment to channel partners’ sales and profitability. However, a new study by The 2112 Group, a leading business services firm specializing in channel optimization and communications, finds vendors are doing a relatively poor job of managing conflict between their direct and indirect sales efforts.

The 2112 Channel Conflict 2012 Report, released today, found that one-third of vendors will cut out their channel partners from sales opportunities if given a chance, and that one-half of technology vendors are the source of channel conflict.

Overall, the level of channel conflict is moderate, reflecting how many of the mechanism used by vendors curtail conflict. However, the moderate channel conflict rating given by solution providers is deceptive, says study author Lawrence M. Walsh. Many solution providers are simply resigned to losing conflict situations with their vendors.

“We’ve found that channel conflict is a reality that still goes unchecked by many of the vendor conflict management efforts,” says Walsh, principal analysts of the study and CEO of The 2112 Group. “In the eyes of solution providers, vendors are rarely seen as the cure to channel conflict; however, they’re almost universally the source.”

The 2112 Channel Conflict 2012 Report is based on a survey of more than 200 solution providers, systems integrators, value-added resellers, managed service providers and telephony agents in the United States and Canada.

2112, a leading business services company that aids technology vendors in their channel development and communications, defines channel conflict as this:

1. Vendors competing with partners for sales, sometimes in violation of stated policies that define separation of sales engagement and territory
2. Direct market resellers and large account resellers, backed by vendors, operating on a volume basis and competing with value-added resellers
3. Partners competing with partners – sometimes at the behest of vendors – for sales opportunities
4. Vendors redirecting partner-generated sales opportunities to preferred or larger partners
5. Customers driving conflict between vendors and solution providers to gain concessions

In this report, 2112 details the definition, sources, consequences and potential resolutions of channel conflict, including enhancing conflict as a means of promoting better channel performance between vendors and partners. This report is not intended to be the final word on channel conflict, but rather a baseline by which to measure and evaluate channel conflict in the future. The report is intended to show the need to enhance policies and mechanisms to manage channel conflict, establish better lines of communications with partners, and develop more positive attributes to channel conflict as a market tool.

A free summary of the report is available online at

Full copies of the report are available for purchase.
To obtain a copy of the full 2112 report, email

About The 2112 Group

The 2112 Group is professional services firm supporting the technology industry in channel strategy, development and partner communications. The 2112 Group works with IT vendors, carriers, distributors and solution providers in identifying and overcoming obstacles to business success in technology sales, marketing and indirect channels. The 2112 Group’s services include business strategy development, market research, custom content, managed blogs, partner relationship mediation, and technology and analytical services. The 2112 Group publishes the channel strategy blog Channelnomics.

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The 2112 Group
Ginger Stevenson

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