3Com beefs up channel program in Asia-Pacific

Since its creation of the Ethernet standard in 1979, 3Com Corp. has relentless pursued the adoption of networking applications at the enterprise level, buttressed by a steady stream of technological innovations.

"It was an exciting journey," said Johnson Khoo, Southeast Asia manager of 3Com Asia-Pacific.

With a portfolio that includes 1,057 US patents, 3Com’s enterprise offerings include WAN routers, switches, network security platforms, wireless access points, adapters and connectivity products, Internet access gateways, secure network interface cards, network management applications and various connectivity products.

Innovation is one thing but distribution is an altogether different thing.

"Distribution is a cutthroat business," said Khoo. "If price is your only competitive advantage, you’re finished."

Over the years, 3Com has prided itself as one of the best channel-driven companies, relying on its partners worldwide to distribute its products and services.

With most enterprise customers now migrating to secure IP infrastructure that fully integrates voice and data networking applications and with more industry players in the enterprise space, competition is driven at a much fiercer pace.

It is in this light that 3Com has announced comprehensive enhancements in its Focus Partner Program in the Asia-Pacific.

"We want our partners to be successful. We go out and ask: What are you good at? What do you want to be good at? We want to help you be good in the area you want to excel in. We give them competitive advantage, believing that if they build their businesses, they will eventually build our business," Khoo told IT reporters.

3Com’s Focus Partner Program, already considered as one of the most profitable in the networking industry, is strengthened even further by a new system that includes points-based, focus-level attainment system, technology specialization, an earnings rebate program and improved partner tools, including more opportunities to leverage marketing development funds to drive end-user demands.

"How can you compete if you don’t have skills?" Khoo said, explaining that skills enhancement for partners is at the core of 3Com’s enhanced channel program. "We build skills through specialization."

3Com partners now have a choice to specialize in any of three major technology areas – security, IP telephony, enterprise LAN and wireless infrastructure – based on their capabilities.

"Our strength is our channels and these enhancements further demonstrate our commitment to our partners through recognition and reward for investment in selling 3Com," Peter Chai, the newly appointed vice president and general manager of 3Com in the Asia-Pacific, said in a statement.

"With 3Com, partners have more opportunities to sell, are more knowledgeable about 3Com products and solutions, and are more motivated, which means customers enjoy a valuable relationship with the partner and 3Com," he said.

Toby Castillo, 3Com’s country manager for the Philippines, said the company has three existing partners – Net Pacific, Creative Technologies, and Micro-D International.

"These are long-time partners of 3Com," said Castillo. "We have been doing this (partner program) for a long time, but this time we are just more focused."

He disclosed that three more partnerships are being developed and will be announced before the year ends.

"We believe in the Philippines," Khoo said, adding that the company’s focus is the enterprise market, particularly the small and medium enterprises, and the colleges and universities.

3Com’s move to enhance its channel program came on the heels of an enhanced product portfolio for the Asia-Pacific market as a result of recent acquisitions and strategic partnerships.

Khoo revealed that one of the company’s important acquisitions in recent years is Tipping Point, a leader in intrusion prevention systems (IPS).

Acquired by 3Com in January 2005 for $430 million, it has allowed the company to offer IPS as part of its security solutions. This is on top of 3Com’s existing security overlays such as application-aware firewall, virtual private network, intrusion detection systems, anti-virus and security management, which are also being developed through partnerships with security vendors.

"We began to understand that the world has changed," Khoo said.

And alongside this realization that doing business has shifted is the awareness that there is a new economy called China.

"The China phenomenon is here to stay and will be a continuing presence in probably the next 50 years," he said. "It is cheaper, has more resources, and has a bigger market."

In November 2002, 3Com entered into a joint venture with Huawei to form Huawei-3Com headquartered in Huangchow.

With 49 percent stake in the new company and with an investment of $160 million, Khoo said 3Com’s China venture will allow it to expand its product line, have access to local engineering talent and enjoy significant presence in the China, Japan and Hong Kong markets.

Complemented by 3Com’s quality process and working on open standards, Huawei-3Com today manufactures a complete set of products for both companies for distribution to an expanded market.

"We are at the inflection point of the next wave," Khoo said. "We have been an innovator; we will continue to innovate."

In a globalized world, Khoo emphasized that there is no nationalization in a product. You can manufacture Swiss shoes in China or provide American services in India or the Philippines.

Not all 3Com products though are manufactured by Huawei-3Com. "People don’t want monopoly; they want choice. Huawei-3Com gives our customers that choice," he said.

These strategies though do not allow 3Com to stray from its main expertise. "We remain focused on the network itself," Khoo added.

In the Philippines, Castillo said 3Com’s main lines are wireless switches and the VoIP space.

Because of the enhanced channel program, its partners can venture into multiple areas of specialization and hopefully broaden the market and deliver more choices to customers, which is really the heart of 3Com’s vision for the Philippines and the rest of the Asia-Pacific.