How Channel Leaders Are Shifting Service Offerings
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How Channel Leaders Are Shifting Service Offerings
Channel execs are redefining their strategies as the tech and business landscape shifts. The result: an increase in managed service offerings. -
Shifting Focus
42% of channel leaders said their service offerings have changed from two years ago. -
Management Plan
One-half said they've sold more managed services over the last two years; 72% said their managed services business will increase over the next two years. -
Long-Term Proposition
Nearly a third (31%) said their project-based business has increased over the last two years, and 62% said this will likely grow in the next two years. -
Smart Move
29% said their intellectual property/app services sales are on the rise, and 53% expect this trend to continue for the next two years. -
License to Sell
26% said they've sold more licenses of other vendors' software or services within the last two years, and 40% expect to keep doing so over the next two years. -
Key Difference-Makers
40% said innovations in workflow automation are driving strategic change while 38% cite employee collaboration/messaging as key drivers. -
Focus on the Cloud
48% said more than one-fourth of their business was tied to cloud-based solutions in 2015, and about two-thirds anticipate that this will continue for the next two years. -
Top Challenges
48% said that the development and refinement of pricing strategies presents a significant challenge, while the same percentage cites the need to build practice areas to support new tech. -
Skills Gap
This study lends credence to reports of an IT skills gap; 45% said they struggle to hire the right talent.
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Why Metrics Matter to the Channel Constant changes in the technology and business landscape are driving channel execs to redefine their services/solutions strategies significantly, according to a recent survey of 100 leaders from U.S. channel organizations. The study, released by workflow automation software provider Nintex, found that the majority of those polled said their managed services offerings will increase over the next two years, and intellectual property/app services are expected to surge during the same time frame. The cloud remains a key component, as most channel leaders said they'll continue to pursue lasting sales agreements that are tied to cloud-based solutions. "Partner business models now trend toward annual recurring revenue," said Josh Waldo, vice president of partner strategy and programs for Nintex. "By offering subscription-based and SLA- [service-level agreement-] centric pricing for cloud technologies and by providing ongoing business support, consulting and training services, partners will establish customers for life, versus a one-time profitable project." Channel Insider examines key takeaways from the study.