Extreme Networks had been suffering an identity crisis in recent years as it tried to be all things to all people, according to Bob Gault, executive vice president of worldwide sales, services and channel.

Heading into the most recent fiscal year, Gault said the San Jose, Calif.-based vendor doubled down in its strongest technology areas and verticals and let go of the verticals and areas where the company wasn't as strong.

Specifically, Gault said Extreme Networks pulled back its investment around Tier 1 service providers since the required customization was expensive and make it tough for the company to play in that space. These funds were reallocated to double down on distribution and the channel, Gault said, particularly in the Canadian market.   

Avnet, meanwhile, has placed its best in specific vertical industries and higher-value areas that are more complicated and complex for end users, Lear said, taking painstaking measures to ensure its investments are aligned with the areas of greatest profitability.

Verticals have become increasingly important for solution providers as clients make more of their decisions based off business needs rather than what would allow for optimal performance within the data center, Lear said.

Avnet has also invested in many services companies over the past three to five years, which Lear acknowledged hasn't always gone "swimmingly well."

Based on this experience, Lear said Avnet has modified its services practice to focus on taking startup costs out of the equation for partners as they ramp into new solution areas. Once enough partners gain expertise in the area, though, Lear said Avnet will shift its focus to a more emerging field to ensure that the distributor isn't stacking the channel, creating duplicity or driving down margins around services.