CV_Spring_2021

T here are a number of shifts taking place in the channel space. A large number of partners have been at this for 20-odd years. After they have weath- ered recessions and now a pandemic, some want to exit instead of rebuild- ing. Others survey the technology shift from voice and data to being forced to sell managed services and everything- as-a-service and consider an exit. Still others tire of the pendulum swing of programs. At least two provid- ers recently launched a “Mea Culpa” campaign as they re-launched their channel programs. A few other provid- ers have diminished network commis- sions even as the price of these services declines. These factors are leading a number of partners to exit. The big question remains: Are there new agencies opening to replace them? Or is the “shadow channel” and ISVs where vendors are placing their bets? Alongside the vendor changes, things have transformed on the buyer side, as well. The buyer persona has changed. What they buy is changing. How they buy is shifting. Concurrently, where people work is fluctuating. Take a moment to reflect on all that is shifting. To some, it is the perfect time to buy up partners’ bases? A number of entities – including private equity firms and master agencies – are offering to buy agencies in whole or in part. Others are offering the JD Wentworth treatment – money now for your recur- ring revenue. For those looking to exit, there are buyers (it just may not be as bountiful as one would have hoped). In addition, some master agencies are offering to manage the accounts for you – upselling and cross-selling into partners’ accounts for a chunk of the commissions, because the customers are where the bread is buttered. A few orgs are offering financing for exclusivity. Simultaneously, the individual produc- ers are also being targeted. Firms are chasing the best sales people, instead of the whole agency. What happens to a master agency if the top two producers are taken off the table? There would be a lot less wind in the sail. In the managed service provider sector, private equity firms are buying both MSPs and their vendors. There are MSP roll-ups happening in an attempt to create a nationwide provider for enterprise accounts. We’ll see if that occurs. Most MSPs are under $2 million in revenue and 10 employees. Even these are merging to get bigger. The vendors themselves have been rocked by the pandemic. Musical chairs are at an all-time high – even at the C-suite. A few vendors hit it big, while others were left wondering what happened. How did Zoom grow 355 percent while other vendors only saw 20 to 30 percent growth? These are questions that need to be examined. In a year without physical meetings, what will become of happy hours and conferences? Will MDF budgets get cut? Some say there will be a pivot. Others think it will return to the way it was before. Likely, it will be a little of both, depending on the company. There are few absolutes. But you can count on change all of the time. Many are looking forward to the fall conference in Vegas as a symbol of a return to normal. We like symbols. We long for the old normal. It was comfort- able. And 2020 was uncomfortable for so many in a variety of ways. But even the return to conferences will not look or feel the same, as the changes sweeping across the landscape will undoubtedly have an effect. o Peter Radizeski is president of RAD-INFO INC., a telecom strategy and marketing consult- ing agency. He is a sales trainer, writer, consultant and speaker. He is available to speak at your events on channel, marketing, strategy or sales. By Peter Radizeski CHANNEL MANAGEMENT Rocking to the Clock Times are a-changin’ in the channel 46 CHANNEL V ISION | May 2021