4 February 2008
by Alex Scroxton
InTechnology has defended its channel model after resellers accused it of "cutting partners out of the loop".
Smaller resellers have already walked out on the Harrogate-based managed service provider after rebates were cut last week.
Bryn Sage, InTechnology managed data services director, said: "Managed services have been going for 10 years, and [the programme has] grown long in the tooth.
"We’re revitalising the scheme and looking to work with partners that can extend our reach... and reduce our time to market."
But partners have lashed out over InTechnology’s handling of the situation.
"Since November it has been writing to smaller resellers to say they will no longer pay commission on contracts," one complained. Smaller players saw rebates end last month but the issue has just come to light with larger dealers, who have also been given notice of the rebate changes, which come into effect for them from March.
The partner, who asked not to be named, said he was seeking legal advice after receiving a letter last week. At least one other reseller is thought to be considering going to court after receiving a similar news.
"They politely requested we submit no more requests for commission from March 2008 from a particular customer as they are discontinuing commissions on network revenues," he said. The partner asserted that InTechnology was "financially strong enough" to meet payments.
The contract in question was for a network services, off-site back-up and managed firewall package.
Another long-standing partner accused InTechnology of taking a channel-unfriendly stance and said it would reconsider working with the firm in the future.
Sage insisted he was not aware of any partners threatening to take it to court, and rejected the idea – mooted by one party – that InTechnology was taking its business direct. He contended that, like other providers, InTechnology ran a hybrid model, and that there would always be some services that suited a partner model, and others that did not.
