Friday, December 21, 2007

Channel Restructuring in Tally

Tally, an accounting software company, has announced a major re-structuring of channel partners with an aim to increase transparency and have better communication among the channel fraternity.
Currently the company has two sets of channel partners. Firstly, Tier I partners that fall under (Master Tally Partners) category. These include company’s regional distributors placed in different parts of the country. Secondly, Tier II partners consisting those who fall under the category of Tally Partners (TP), which include local level dealers.

Talking about this initiative, D. Kalyanaraman, president and head (global services business) of Tally said, “The main reason behind channel re-structuring is to increase the transparency among the Tier 2 channel partners and decrease the competition between Tier 1 and Tier 2 partners.”

Prior to this initiative, Tally was involved in communicating only with Tier I partners. However, with this new plan, the vendor will directly interact with Tier II partners as well. This will further help in increasing company’s reach at the local market level.

To communicate with local partners, the company intends to register them across the country. This includes the existing Tier 2 partners as well as the new ones. By the end of first quarter of 2008, 15,000 partners would be registered.

Kalyanaraman said, “The criteria for selecting the partner would primarily depend on whether the partner is willing to promote the software and make money with the company.”

In order to nurture channel restructuring, Tally will carry forward the initiative to next year as well. Initially, the company would be covering cities like Chennai, Delhi, Mumbai, Cochin and Bangalore and then take it forward to 11 B-class cities.

The company is also working to bring price structuring in place. By this, Tally is trying to reduce the competition, by equalizing the margins of Tier 1 and 2 partners.

Publication : Channel Times
Date : 20 December, 2007