Channels and Alliances
Predictions 2014 (1 of 10): North America Indirect Software and Infrastructure Spending Will Increase Slightly
We will be sharing the top 10 Channel and Alliances 2014 predictions throughout February. This blog post looks at the first of those predictions: that North America Indirect Software and Infrastructure Spending Will Increase Slightly.
Indirect software spending has been on a gradually increasing trend and is expected to reach 45.5% by 2017. Key trends that affect the percentage of indirect software sales include:
- As a software market matures, the percentage of indirect sales tends to increase.
- The overall go-to-market strategies of the major vendors have a direct impact on the indirect share. For example, any market dominated by Microsoft will have a very large proportion of indirect sales.
- The small and medium-sized…
This blog post looks at five key software partnering predictions from last year. It lists what the prediction was, how we rated our accuracy, and why that was the case. Later this week we'll look at five key infrastructure partnering predictions from last year. And we'll follow that up with 2014's predictions over the rest of February.
2013 Channels and Alliances Predictions
1. Partners Will Use Cloud as a Loss Leader
When we made this prediction we didn't intend to imply that cloud wasn't profitable, but rather that cloud would help partners get in the door easier. We have certainly heard from many partners that customers are very interested in cloud and that they can get an appointment simply by mentioning the word. Cash flow can be a problem, while the recurring revenue stream ramps up, but overall,…
The move toward greater verticalization in the IT community continues to spread. But now some companies are acknowledging the strategic importance of micro-verticals and channel partners to their future revenue growth.
Case in point, SYSPRO, an ERP vendor that has a footprint of 60+ country and 15,000 licensed companies, which is updating its micro-vertical approach within the food industry. SYSPRO announced this week an upgraded SMB Food Solutions. SYSPRO USA's "Einstein Brain Trust" for the food industry is part of a multi-prong approach providing these vertical industry clients best-in-class ERP functionality aimed at food source management, tracking and legal compliance issues. It also provides…
And so to the last (but certainly not least) prediction in the series of 10 Channels and Alliances 2013 Predictions. Don't forget to sign up for the webcast this week. Details below:
The topic of Social media use within partners & partnering is another of the areas that IDC see a gap between Vendor's intentions and Partner reality. The massive growth of Social media means that it is now a fundamental part of most large vendors' go to market activities, however at a Partner level, the uptake is a lot more inconsistent, and even relevant in some cases.
From our many…
Welcome to number 9 in the series of 10 Channels and Alliances 2013 Predictions. Don't forget to sign up for the webcast next week. Details below:
The Pareto principle, also known as the 80/20 rule, is well worth taking the time out to read up on. Go and look it up on Wikipedia or the like and see how a principle from over 100 years ago is applied in many forms in business today.
In this prediction, the rule application is supported by some recent IDC surveys which suggest that partners that have already transitioned to the cloud, or are…
Here's number 8 in the series of 10 Channels and Alliances 2013 Predictions. Don't forget to sign up for the webcast. Details below.
There's an interesting battle brewing that stems from IDC's high-level prediction that line-of-business executives will be involved with 80% of IT sales by 2016 and be the decision maker in 40% of them. The IT department has long been dubbed the "Department of No." And the LOB is clearly taking over the driver's seat. This opens up an opportunity for solution providers to play the role of "referee" or "broker" between these two organizations within a company.
Many of these partners have made their living over the past 20 years working closely with IT departments but have been adapting to the trend of selling to the business. What better organization to help bridge the gap between the two?
Today's best solution providers make good brokers because they are typically agnostic and not pushing one particular solution on the company, the way a vendor salesperson may do. The trade-off between providing fast solutions to the business and staying…
Here's number 7 in the series of 10 Channels and Alliances 2013 Predictions. Don't forget to sign up for the webcast. Details below:
IDC has observed that partner models are continuing to blur over time, and with the advent of SaaS, PaaS, aaS, and other cloud-based models, this will continue. In particular, IDC is seeing more and more regional systems integrators (SIs), VARs, and other IT consultants starting to "package" up their own software solutions for sale. This might be their own product or add-ons to existing vendor offerings.
This is happening for a few key reasons:
- SaaS and IaaS can offer more stability than on-premise environments, reducing the risk that changes in operating systems or database versions will cause a third-party solution break.
- Packaged offerings allow solutions providers to enhance their profit and revenue by leveraging repeatable IP. This is an especially efficient scenario for serving the SMB market, which is difficult to cover widely with constrained human resources.
2013 Predictions (6 of 10): The Disconnect Between Vendor Aspirations and Partner Realities Will Drive Program Simplification
As a precursor to IDC's Channels and Alliances 2013 partnering predictions report and webcast on February 6th 2013, we will be sharing a sneak preview of each of the top 10 predictions throughout January. This blog post looks at the sixth of those predictions: The Disconnect Between Vendor Aspirations and Partner Realities Will Drive Program Simplification.
In 2013, IDC expects to see at least one vendor resolve to be the easiest for partners to deal with. Bloated partner programs are an inevitable result of honest efforts by vendors to address new or evolving go-to-market strategies. IDC believes that we have now reached the tipping point where vendors will start to move back to the good old days of simpler, easier to consume, and more agile partner programs. The impetus for this is not just the overhead burden associated with the care and…
As a precursor to IDC's Channels and Alliances 2013 partnering predictions report and webcast on February 6th 2013, we will be sharing a sneak preview of each of the top 10 predictions throughout January. This blog post looks at the fifth of those predictions: that Partners Will Help Big Data Go Smaller.
Big data is a big thing. IDC forecasts that spending on big data technologies and services will reach almost $10 billion in 2013 and will be worth double by 2016. So far most traction has been in large enterprises, which means there is lots of opportunity to get the mid-market on board.
Big data can also be a big mystery. Vendors are doing their part to explain the features and benefits of big data but many organizations are struggling to get their heads around how to take advantage of them.…
As a precursor to IDC's Channels and Alliances 2013 partnering predictions report and webcast on February 6th 2013, we will be sharing a sneak preview of each of the top 10 predictions throughout January.
This blog post looks at the fourth of those predictions: Cloud Resale Will Evolve into Two Distinct Paths
4. Cloud Resale Will Evolve into Two Distinct Paths
IDC sees cloud resale evolving into two distinct paths for vendors in 2013: resale and referral. These will be determined by the partner's level of commitment to its vendor:
"Casual" partners will be allowed to refer cloud solutions and will collect a referral or agent fee for their sales efforts. This was how cloud resale initially began about…