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The Rules of OEM Partnering.
(From Israel Business Arena)
Byline: Michael Neuvirth
Since the very beginning of Enable, there has been one key theme running through virtually every column. The theme is that there are certain things that must be done correctly, right from the very beginning of a start-up. If not, they can never be corrected and the startup will most likely fail.
Today's Enable covers a classic example that incorporates the above theme - OEM relationships. OEM is a term that refers to equipment that can be packaged and integrated together with other equipment and software into a solution by a distributor, VAR (Value Added Reseller) or someone other than the original manufacturer of the equipment.
A lot of startups choose the OEM route as their initial marketing strategy and simply assume that they will enter into a joint venture with any of the above in order to sell their product.
Unfortunately, OEM relationships are complex and must be done right - right from the start.
Creating and maintaining an OEM relationship is difficult. Each OEM has its own unique requirements, tough standards, and will usually pressure you to act in their (not your) best interests.
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