Talk or Perish

Nortel India is expected to stay around for many years, if not for a long
time down the line. While the company is completely optimistic about its future
and does not believe in amendment, the channel partners have a different view.

Channel partners feel that the lack of communication and support is forcing
them to switch loyalties, heavily impacting the customer base and market share.
They are upset about the companys silence and seek an explanation or a
communication from the companys end. According to them, if this is not solved
at the earliest, the company would go down in another one or two years.

Usman Shariff, proprietor of Auro Business, says that Nortels sell-off
reports are rising to various speculations in the channel community. He says,
Nortel has got a range of high-quality products. The products used to sell for
themselves because of their competitive performance and pricing. But lack of
clear communication from the company is taking its customers away.

Our customers first look for product and then support commitment. While
Nortel gains in product and pricing, it loses in commitment. So much that people
prefer a costlier product over it, he adds.

Shariff is an Authorized nForce partner for Nortel SMB products. He finds it
difficult to accurately quantify the number of customers he lost over the period
of time, but has noticed a drastic decline in sales enquirers. They should send
at least a mail or a representative telling us about their plans. We have no
idea and therefore we are clueless when customers approach us. Nortel is losing
to the competition even before giving up completely.

Another partner, Asim Khan of Netflow who raised concern over Nortels
vanishing act said that partners are juggling between the vendor and the
distributor as every time they call up Nortel, they are directed to talk to the
distributor, while the distributor sends them back empty-handed. He says, In
this juggling act, only Nortel will lose market and customers. Since, we are not
able to promise customers about Nortel support, they are switching brands. He
adds that one of its biggest customer, Taj group of Hotels, which had been a
loyal Nortel customer for three years, went back with 3Com products. If this
continues, then first the customers and then, partners will have to part ways
from the company.

But Ashish Dhawan, country manager, enterprise, Nortel India says its
customers are still investing in Nortel solutions, though the environment is
tough: A significant percentage of our revenues in the first half has come from
our existing customers. We recently hosted a channel partner conference which
was attended by over 180 partnersall of whom demonstrated their ongoing
support.

We have launched multiple partner-focused programs to enable our partners to
sell more. We have launched a partner incentive program for some of our select
partners encouraging them to sell more, says Dhawan. Also, there is a partner
driven ERS 5600 campaign in the market wherein our partners can buyback existing
end of life data gear from customers and replace it with brand new Nortel ERS
5600 series of switches. For tier-2 channels, the offer gets even better. By
buying 1 ERS 5600, they get 2 ERS 2500 for free, he adds.

On contacting Redignton India, one of the national distributors of Nortel, it
was learnt that apart from the internal turmoil, Nortel was also facing the
pressure from the market. According to Ramesh Natrajan, sales head at Redigton,
Nortels strength is in voice and data solution, which is largely deployed in
the BPO/KPO sector. So, the slowdown in this sector rippled down to impact
Nortels business as well. He accepts that Nortel has been adopting a low
profile in communicating with the partner community.

Lack of communication in tough times, worsens the scenario for everybodybe
it a giant or a dwarf.

Akanksha Prasad/CIOL

maildqindia@cybermedia.co.in