The Channel Is Embracing New Business Models

Transformation

1 - Transformation Is the New NormalTransformation 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.

2 - Drivers of TransformationDrivers 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%.

3 - Biggest Transformation ChallengeBiggest Transformation Challenge

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

4 - Sales and Marketing in the ChannelSales 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.

5 - Selling to the Line of BusinessSelling 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.

6 - Planned Changes to MarketingPlanned 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.

7 - Changing Channel Staffing RequirementsChanging 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.

8 - Increased Channel ComplexityIncreased 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.

Michael Vizard
Michael Vizard is a seasoned IT journalist, with nearly 30 years of experience writing and editing about enterprise IT issues. He is a contributor to publications including Programmableweb, IT Business Edge, CIOinsight, Channel Insider and UBM Tech. He formerly was editorial director for Ziff-Davis Enterprise, where he launched the company’s custom content division, and has also served as editor in chief for CRN and InfoWorld. He also has held editorial positions at PC Week, Computerworld and Digital Review.

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