As I talk to channel partners, I find that many companies are playing on both sides of the channel – they sell branded systems, usually built for the mass market by an OEM, but continue in certain cases to build their own custom systems out of components.  But how are they deciding when to build their own and when to sell branded systems? 

In my position at AMD, leading our Worldwide Partner Programs, I continue to see partners asking for support on both sides of that coin. So given the relevance to all parts of the channel, I’d like to take a few minutes to explore this very important question more in-depth.

A case for building custom solutions

In the commercial space, many VARs build their business around reselling solutions built with branded OEM systems.  Branded systems are often the way to go when requirements are fairly basic. However, many VARs also continue to build and deliver custom systems when it makes sense for customers requiring a custom configuration not available in an off-the-shelf OEM system. Reasons for this could be a request for a specific graphics solution, a requirement to drive multiple displays, a preference for particular storage solution or any number of custom configuration requests.

 Another common reason to build is to hit a specific quality or performance requirement. If performance against a specific application is important, a custom system configuration can often deliver a better experience for the customer, and often at the same or better cost point than the off-the-shelf OEM solution. So rather than fall short of meeting the customer’s requirements, VARs are wise to have the ability to deliver custom solutions to meet the specific needs of customers.

Customization continues for consumers

Consumers often face the same decisions as businesses when it comes to purchasing PCs.

 For basic productivity applications and home usage, the standard OEM branded solution will easily meet the consumer’s needs. But for consumers looking for the best possible experience against specific applications – whether that be video editing, home theater or gaming, a custom built solution may be worth the investment. 

There are tremendous market opportunities for those builders who are able to deliver outstanding end-user experiences against those consumer applications at a price/performance point that OEM systems just can’t match.  It can really be a win-win situation for businesses looking to sell in a highly competitive consumer market and for the consumer looking to get a personalized and optimized experience at the right price.

Knowing when building or reselling makes the most sense

Whether building or buying, partners must continue to assess their current customer base and find out what their customers are looking for. By analyzing usage, needs and budget, channel partners help customers make more informed and efficient choices.  Before deciding whether to build or resell, it’s important to understand your market and end-user, so here are a few questions that should be addressed:

·         Does a custom solution offer measurable benefits or differentiation versus an OEM off-the-shelf solution?

·         Are users willing to pay a premium for custom solutions that specifically address their needs?

·         Can the benefits of a custom solution be easily and tangibly communicated to the end user?

In my opinion, more often than not, selling a mix of branded and custom systems is the best way to address varying customer needs while maintaining a healthy business.  And, the importance of vendor-created programs that enable and support partners that sell to both of these markets is something that AMD is working hard to provide. Where do you stand on build vs. resell?  Are you seeing any trends in the marketplace?  Do you see the benefits of selling both options to your customers? I would love to hear from you.

Gary Bixler is Director Worldwide Partner Programs at AMD.  His postings are his own opinions and may not represent AMD’s positions, strategies or opinions. Links to third party sites are provided for convenience and unless explicitly stated, AMD is not responsible for the contents of such linked sites and no endorsement is implied.