A recent slew of partner program updates coming from major tech companies, for instance, included little emphasis on the usual channel acronyms and silos and much emphasis on “flexibility” in working with “multiple types” of partner models and modes. While certainly still focusing on its large reseller base, VMware partners now can pursue “one business model, depending on their core competency, or there can be many business models, depending on how they execute that customer lifecycle with their end users,” said Kaushik Ram, senior director of partner programs and experience at VMware, upon a program update announcement last year. Partners won’t be typecast into particular roles, he noted. As part of the first material change to Microsoft’s program in many years, said Rodney Clark, corporate vice president of global channel sales and channel chief at the Redmond, Wash., company, the updated Microsoft Cloud Partner Program “spans partners that sell services, develop software offerings or focus on devices.” Microsoft officials emphasized the goal of backing all partners regardless of business model, it was reported. “This is a program for all partners – no matter what type of business model you have,” added Nick Parker, corporate vice president of global partner solutions at Microsoft. “There is something in there for every partner to differentiate their offerings to their customers.” CX & Enablement One thing seems pretty certain, “proximity to the customer” is key, said analysts at IDC. “Quality CX” is the new mantra, and for good reasons. Customers face complex problems and rapidly evolving environments. And prospects usually have done the majority of their discovery research before they are even touched. Getting those customers is tough. Not keeping them eliminates any real value. In comes the “trusted advisor” that can address their important questions, understand the triggers and business needs of the customer and stick through beyond implementation to help drive intended outcomes. It’s certainly not an easy role to play, but it’s not one that’s particular to any partner model. It’s also why we are seeing channel reward programs starting to shift from sales- and transaction-based tiers to points-based systems that reward partners for customer experience achievements such as product and customer enablement training, post-sales activity and willingness to share and integrate customer data. When announcing the latest retooling to Microsoft’s partner program, Clark pointed to research showing how a group of partners that invested in Microsoft’s advanced specializations, which let channel companies differentiate across a range of technical fields, grew twice as fast as a group not participating in that program. A group that in addition to pursuing specializations also invested in digital sales via cloud marketplaces, emphasis on partner-to-partner engagement and participated in Microsoft’s co-selling programs grew at 140 percent. Not surprisingly, Microsoft seeks to “get all the partners to participate in that 140 percent growth,” Clark told TechTarget’s MicroScope. As cheesy as it may sound, finding productive channel partners within the current and coming ecosystem could be less about partner business models and the “what” that is being delivered and more about developing true partnerships. Certainly, serving and retaining customers will require partners and providers that are willing to deeply cooperate, share and integrate throughout the entire customer lifecycle. On one hand, cloud and digital transformation have greatly expanded the potential base of viable partnervendor relationships. On the other hand, channel program marketers and partners have a less clear and defined path to finding ideal partnerships. o Drivers for Changing Partner Business Models Better revenue/profit potential 50% To stay competitive/avoid obsolescence 46% Customers buying more technology direct 39% Customer demand for managed services 38% Positioning to take advantage of trends 35% Vendors pushing in new directions 22% Positioning the company for a sale or M&A 19% Source: CompTIA, 2023 Incidence of Business Model Change for Channel Firms Source: CompTIA, 2023 What types of t ols do you use to manage a d optimize cloud usage? Source: Anodot ‘2022 State of Cloud Cost Report’ Employees with women managers are more likely to say tha manager has supported and helped them over the past year. e following disruptors will ? 38% 34% 27% 19% Native tools Actions taken by managers to support employees, by manager’s gender, % Third-party solution that manages multi-cloud environments M ltiple thi d-pa ty solutions Built our own One third-party solution nce UK Spain U.S. Italy Singapore Germany Brazil 40% 60% 80% 100% 5% 19% 15% 10% 81% 11% 65% 19% 72% 18% 18% 13% 21% 12% % 20% 14% 17% 9% 25% 19% 26% 7% 4% 9% 6% 6%3% 3% 19% 14% 24% 10% 17% 32% 23% % 63% g Piloting Small-scale Large-scale 1% 32% 37% 42% 44% 50% 53% 42% 44% 43% 19% 15% 21% 15% 13% 53% 33% Some extent Great extent ze, By Organization Size, 2016-2027 (USD Million) 2,360.60 Have already undergone business model change Currently undergoing business model change Considering a business model change No business model changes planned 24% 25% 19% 16% 35% 27% 38% 30% 25% 42% 31% 33% 9% 6% 11% 17% Large Mid-sized Small Micro 10 THE CHANNEL MANAGER’S PLAYBOOK
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