The Channel Is Embracing New Business Models

Transformation

Transformation Is the New Normal

55% reported that they have achieved a moderate level of business transformation. Only 22% said they have achieved a high degree of transformation.

Drivers of Transformation

Cloud computing was cited most often (41%) as a catalyst for change, followed by customer demand for new services (36%) and a need for recurring revenue (35%). Product margins and fears of obsolescence were cited least, at 23%.

Biggest Transformation Challenge

Cash flow tops the list, followed by customer education. Lack of a business transformation road map was cited least often.

Sales and Marketing in the Channel

77% said they are moderately to highly effective at sales and marketing while just 3% said they are not effective.

Selling to the Line of Business

A full 40% said they are training sales staff to focus on line-of-business executives, while only 19% said they are providing sales incentives to focus on business executives.

Planned Changes to Marketing

73% plan to invest significantly more or somewhat more in social media, while 20% said they will no longer lead with vendor branding or certifications.

Changing Channel Staffing Requirements

23% said that adding new sales reps has been a major activity, while another 24% said that adding new marketing reps has been a significant activity. This contrasts with 25% who said they have been eliminating sales reps based on a change in their business model.

Increased Channel Complexity

Almost half (47%) said new business models make the channel somewhat or dramatically more complex, while 34% said it actually reduces the complexity in the same manner.