Tally restructures its channel

Subbalakshmi B. M

Bangalore: With an aim to ensure greater transparency as well as keep pace
with its aggressive growth plans in India, Tally has undertaken a major
restructuring of its channel.

Accordingly the company has set up a two-tier model which consists of the
first tier of partners called Master Tally Partners (MTP) who include the
various regional distributors that the company has across the country. The
second tier partners are called the Tally Partners (TP) and these include the
local resellers/dealers.

Speaking about the restructuring, D. Kalyanaraman, President and Head (global
services business) of Tally said, "The new channel structure helps ensure a
greater transparency and also better communication between us and the partners
as well as amongst partners themselves. In addition this structure ensures that
our Tier 1 and Tier 2 partners do not compete with each other anymore."

As per the new structure, each MTP is allotted a specific area whose market
development he has to look after. This includes the sign ups and registration of
TPs within that geography.

The new structure has been initiated five cities across the country (four
metros and Bangalore) and will be launched in eleven more cities (B and C class
cities and towns) in the near future. The company believes that this move will
help to increase its reach in the local markets across the country. Tally hopes
to register about 15,000 Tier 2 partners across the country under the new
initiative, by March next year.

According to Kalyanaraman, "The criteria for selecting the partner would
primarily depend on his understanding of the end customer's needs and his
willingness to promote the software and make money with the company."

In addition to channel restructuring, Tally has also initiated a new price
structuring policy. Accordingly whether an MTP sells directly to the customer or
sells through his TP, he would make the same margin. By doing this, Tally is
trying to reduce the competition and equalize the margins of its Tier 1 and Tier
2 partners.

As far as the year ahead is concerned Tally is all set to come out with new
products and solutions as well as increase focus around growth in the SMB space.
"We have just scratched the surface. We see at least eight million
potential customers out there in the market and all our strategies would revolve
around reaching out to them," Kalyanaraman added.