Are PRM Software Technologies a Good Investment?

There are several naysayers that claim PRM is not a good investment and that many companies are turning to free as well as hosted solutions instead. They claim that it is only the initial allure of automation that makes it so attractive at first. The various common processes that are involved in managing one’s bulk of channel partners are truly great that it created a burst in the field several years ago. However, they claim that the field is not folding over and nearing its final bow.

The rate of growth that the Partner Relationship Management tools industry have gone through is truly fast. It shot up to the roof before in the year 2000. However, it seemed back then that there were not enough customers who wanted to purchase such a service.

There have already been a number of casualties for this phenomenon. Hosted channel management firms that simply specialize in certain industries for channel relations have been dying out in the past years. There were simpler or more traditional solutions to the solution which these companies offered. Once could simply use Fed Ex tubes or integrate a complex system for this task. More often than not, companies preferred the simpler solution.

Here is the main issue of the whole debacle: At first, these tools were marketed and bought for the purpose of creating a streamlined system for various channel related practices and activities. Training, fostering teamwork, communications, product introduction synchronization, and organization of resellers were the initial promise that PRM software had been touting around. But the thing that most companies are seeing right now is that it does not create this effect. Or if it does, it does so at a meager level. It is not significant enough to be called a progressive development as effected by investment on this product system which costs a lot of money in terms of integration as well as maintenance.

However, even though partner relationship management did not deliver on this initial goal, it still created an affect. Instead of synchronization and over all organization of communications, it turned out or was primarily used as a platform which founded management and publication of pricing in the network. It also specifically was useful for the control of the pricing. This was because all the data it created was streamed directly towards both the parent company as well as others involved in the joint venture. And it was able to create analytics since the data was detailed and was constantly updated in the very platform that automatically calculates these figures at hand. This became its best edge.

So for those who are thinking of investing on PRM software, this must be what should be kept in mind. This strength of Partner Relationship Management software should be weighed against its cost. For a lot of companies, this is an indispensable need. Control of pricing is a key element to productivity especially for companies with a vast channel cloud system. It will enable such companies to arrive on well-deliberated choices when it comes to allocation of supplies for channel sales.