Channel Partners: Services Revenue Remains Healthy

Partner-delivered services seem to be recession-proof, according to a new
survey of reseller channel partners.

The survey of IDC’s Channel Panel for the
second quarter found that the highest levels of service revenue, making up 47
percent of total partner revenue, came from those who sold networking products.

But the revenue received from reselling third-party services was dramatically
lower, with storage services coming in the highest and contributing just over
15 percent of partner revenue, according to IDC.

"Services are the cornerstone of most U.S.
partner communities’ business," says Janet Waxman, vice president for
Infrastructure Channels and Alliances at IDC,
in a prepared statement. "For years, the amount of revenue partners derive
from services has steadily increased and we expect this trend to
continue."

That’s because services are in demand regardless of the product’s vendor, and
they can be sold to customers at a variety of times, representing a potential
annuity revenue stream. IDC believes that
the variety of services offerings and delivery methods available to partners
and how vendors position their own offerings will ultimately influence which
vendors succeed.

"Suppliers that are not prepared to allow the partners to participate in delivery
of their own services will face increased competition from, and possibly some
loss of share to, suppliers with similar products that allow partners to
determine their own mix of service offerings," says Matt Healey, research
manager of Software and Hardware Support Services at IDC,
in a prepared statement.

The survey also found that partners that sell services associated with servers
also experienced a similar services revenue contribution as did the networking
partners. But partners that sold storage saw the smallest contribution to
revenues from service sales.