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Predictions 2014 (10 of 10): Monthly buying models and a new breed of salesperson will become the new normal for cloud
Partner transition to cloud business models has been underway for some time and isn't over yet, so we are still seeing new aspects of adaptation. We expect to see two interesting changes accelerating in 2014: More options for a monthly buying model, and a newer, younger breed of salesperson.
For one, the days of the annual cloud payment contract are numbered as monthly billing can be more attractive, not only for the SMB sector but also for government and even Fortune 500. Partners want to offer their own products and services on a monthly payment plan and therefore are more attracted to relationships with software vendors who allow them to resell cloud solutions on the same terms. That's why we predict the decline for annual payment schemes for cloud in 2014.
Cloud will also…
What's the future of Distribution? Well it's flying drones, of course! Just kidding (I think?).
Clearly logistics, inventory management, and pick, pack and ship are redundant when software is delivered as a service. However, this doesn't mean we think there is no role for distributors in 2014 and beyond. There are several reasons behind this.
First, all of the major distributors in North America have created tools for aggregating SaaS, Paas and IaaS offerings that allow partners to present a single consolidated, consistent bill to their customers. This is good news for solution providers who were wondering if they were going to be disintermediated, or at best play only a peripheral role within referral fee programs.
Then there are the things distributors have always done well, such as the necessary evils of credit checks,…
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