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3Com Slashes Top Partner Ranks In Half: Page 2 of 4

If the solution provider can't reinstate its Gold-level status, Graven expects the designation and warranty changes to cut its margins by 10 percent to 15 percent. Graven, who prior to the changes considered himself a loyal 3Com partner, said he is now looking to bring on new product lines.

Other solution providers who requested anonymity said they also are seriously considering alternatives as a result of 3Com's new terms.

Several Gold 3Com partners said they were first notified of their retroactive demotions to Silver status via a letter delivered through the U.S. Postal Service. The partners' letters, signed by 3Com Vice President of Americas Channel Sales Nick Tidd, were dated Sept. 8, according to a documents viewed by CRN.

Partners have the opportunity to return retroactively to their Gold status with 3Com if they attain 75 percent of the new $250,000 quarterly Gold revenue requirement during the September-to-November period, according to the document.

"I don't see much positive coming out of it for the average dealer," said Michael LeBlanc, president of LeBlanc Communications, a solution provider in Trumbull, Conn.