Siemens Enterprise Proves Serious About Its Channel Transition

| Oct 26, 2009 | Enterprise Communications | Competitive Intelligence Report

| Analyst: Rob Arnold

Current Perspective: Very Positive
Vendor Importance: Very High
Market Impact: Moderate

Event Summary

October 19, 2009 - Siemens Enterprise Communications announced Westcon Group, Inc., has joined its Go Forward! programme for partners. Westcon is now a SEN Group Value Added distributor, effective from October 2009, offering all of Siemens’ open, IP-based communications solutions to its reseller base. This agreement will allow Westcon to expand its existing range of UC and converged communications solutions to VARs in the UK, France, Germany, Italy, Norway, Denmark and Benelux.

Analytical Summary

• Current Perspective: Very positive on Siemens Enterprise Communications’ recent moves to strengthen its channel network because the relationships it has forged will help company to increase the depth and breadth of sales efforts for its products and services compared to what its direct resources could provide. However, it is still early days for these relationships and their success is yet unproven.

• Vendor Importance: Very high to Siemens Enterprise Communications, because it is proving committed to following through on stated goals of increasing its indirect revenue from 10% today to more than 75% in three years. Building out its channel ecosystem is obviously critical to this objective, but it is also needed to provide a framework to support the company’s longer term plans of transitioning away from its traditional hardware-centric business model to become more of a software and services provider.

• Market Impact: Moderate on the enterprise communications and contact center sectors, because Siemens Enterprise has taken notable steps to strengthen its channel in a manner that may result in a denser and farther reaching sales network for the company that will create a greater presence for Siemens Enterprise that competitors will have to face off against more frequently.

CLIENTS ONLY

Current Perspective

Competitive Positives and Concerns

Recommended Vendor Actions

| Client access - Full report in Enterprise Communications

Recommended Competitor Actions

• With Siemens Enterprise attempting to on-board new resellers in volume, rivals should openly question the experience and expertise of Siemens Enterprise partners in competitive situations.

• Avaya should tighten its bonds with Netlink to ensure that the reseller’s acquisition of Siemens assets does not become a detriment to Avaya’s more established presence within this particular channel. Avaya should also tighten its bonds with Westcon and work closely with the VAR to help resellers make the transition from Nortel to Avaya support programs.

• Cisco should likewise tighten and protect its existing relationships with Netlink, Westcon and Synnex.

• All competitors should attack Nortel’s channel network to recruit resellers. Despite Avaya’s retention efforts, many resellers are still weighing their options.

Recommended End User/Customer Actions

• Customers with RFPs from Siemens Enterprise partners should verify the qualifications of the reseller to support the solutions being presented. (Note that it is standard practice in any engagement with any reseller or vendor, but it should not be overlooked.)

• Existing Siemens Enterprise customers should inquire with their reseller about how the vendor’s initiatives can benefit them in terms of pricing and service support.

• Enterprises wishing to work directly with Siemens Enterprise should be aware that the company’s initiatives to strengthen its channel network does not necessarily mean that they cannot receive direct support.

CLIENTS ONLY

Current Perspective

Competitive Positives and Concerns

Recommended Vendor Actions

| Client access - Full report in Enterprise Communications

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