If you are a Cisco VAR or reseller what kind of margins do you make on Cisco sales? Most of the Cisco resellers I speak to have to try and cut their neighbors throats as they fight over Cisco business that while plentiful is often such low margin that the bottom line takes a hit. Well good news for all you McAfee resellers out there. The same system is coming to you soon!
According to this article in eChannels the new McAfee channel chief who came over from Cisco wants to emulate the Cisco model. What does that mean for you? Well everyone and their Mom will be a McAfee reseller and the bidding on McAfee products will force you to lower prices to the point that you are working for peanuts. Also if you offer a competing product they are liable to tell you that you will never see another McAfee deal again. I have heard that from lots of Cisco VARs too. Sound appealing? Except of course McAfee ain’t no Cisco, they don’t control 70% of their market. There will be other resellers pushing Symantec, StillSecure and other security products and making bigger margins. Just something to think about.