The Challenges for Microsoft SharePoint Integrators

May 22, 2012

I don’t care too much about outfits who surf on other company’s software. Been there. Done that. In my experience with Infozen, an outfit with which I was affiliated during the wild and crazy “index the Federal government” years, I learned:

  1. Integrators and resellers take advantage of clients who lack the expertise, time, and management acumen to get a job done in a cost effective manner during normal work hours
  2. Partners, integrators and resellers sell what generates money. Investing in research and development is a PowerPoint or Keynote slide, not a business practice. Clients pay for the resellers and integrators to solve a problem. If the solution works, the integrator or reseller will resell the solution, emphasizing that it is an invention.
  3. Integrators and resellers are trying to avoid the “pay to play” model enforced by a number of software giants. A good way to determine if the outfit requires integrators or resellers to pony6 up hard cash for the privilege of selling enterprise software is too look for print advertising in various trade publications.
  4. Integrators and resellers use a tie up as an occasion for a news release. A good example is the “Oracle Endeca Getting Started Partner Guide.”

At a recent briefing I gave in New York, I had an occasion to talk to a very energetic investment type. I picked up three signals about the Microsoft SharePoint reseller and partner ecosystem. Like most information floating around after 6 pm in Manhattan, I suspect there is mostly baloney in the observations. But I wanted to snag them before they slipped from my flawed short term memory bank:

First, it seems that Microsoft is not putting much wood behind Fast Search & Transfer technology. I believe the phrase the MBA squirrel used was “end of life.” If true, the $1.2 billion and messy Fast situation may be in the midst of a rethink. What will Microsoft do? With the juicy search companies gobbled up, Microsoft may have to pull some rabbits out of its many hats. Open source, non US search and content processing vendors, making a cake from its own search ingredients, leveraging Powerset and other technologies?

Second, some Microsoft partners are starting to “go off the reservation.” In the free blog, I do not want to mention names. I learned that one prominent Microsoft Certified Partner had quietly embraced non Microsoft technologies. The “quietly” suggests to me that Microsoft could choke off a flow of sales leads if the shift caused big waves. The reason to “go off the reservation” boiled down to the sense that some Microsoft centric shops were starting to demonstrate “fee fatigue.” What do resellers do when revenue from Old Faithful slows, resellers and integrators look for what will sell.

Third, after decades of having a sure-fire business model, some partners and integrators see that alternatives exist and may be worth exploring. Examples include cloud alternatives to on premises Microsoft solutions or – hang on to your hat – open source solutions.

The impact of the lousy financial climate is taking a toll on some Microsoft centric vendors. The toll will be more burdensome going forward. In short, integrators and resellers are in play.

Stephen E Arnold, May 22, 2012

Sponsored by Polyspot

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