The Channel Is Embracing New Business Models

By Michael Vizard

It's hard to remember a time when the channel wasn't in transition. But a new survey of 350 solution providers conducted by CompTIA shows the channel is not only embracing new business models, but are also becoming more comfortable with them. There's no doubt that major challenges still exist, with cloud computing and managed services, for example, but even though the channel is a more complex place to do business, 77 percent of those surveyed have made moderate to high levels of transformation to their business models. Cloud computing is cited most often as a primary driver of that business transformation. The result of that transformation, however, may be even more significant. The vast majority of solution providers report they have increased investments in marketing, but also are hiring new sales people or retraining existing ones to focus on line-of-business executives rather than internal IT organizations. How many solution providers can actually be viable in the channel remains anyone's guess, but one thing that is certain is that many providers will be more organizationally mature, which by extension should mean more profitable.

This article was originally published on 2014-10-28