Tech Distribution Changes in a Cloudy Industry
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The document discusses the evolving landscape of technology channels as businesses become more self-sufficient, with a focus on cloud computing and changes in reseller models. Channel resellers are shifting towards managed services and adapting their business strategies in response to diminishing product sales. The call to action emphasizes the need for distributors to adapt or perish, while vendors should understand the changing dynamics to leverage distribution partners effectively.
Tech Distribution Changes in a Cloudy Industry
- 1. Coming Upheaval in Technology Channels: How will New Revenue Streams be SharedPeter O’Neill, Vice President & Principal AnalystDistreeXXl, Monaco, February 10, 2011
- 2. Agenda
- 3. The business of IT is becoming empoweredSource: January 7, 2011 “BT 2020: IT’s Future In The Empowered Era” Forrester report.
- 4. And three forces of change impact the business of IT Source: January 7, 2011 “BT 2020: IT’s Future In The Empowered Era” Forrester report.
- 5. Businesses expect to be more self-sufficient and empoweredSource: January 7, 2011 “BT 2020: IT’s Future In The Empowered Era” Forrester report.
- 6. Agenda
- 7. Recap: What is cloud computing?Cloud computing is:A standardized IT capability(services, software, or infrastructure)delivered via Internet technologiesin a pay-per-use, self-service way.
- 8. What will move into the cloud – Long term dualityWhat will move into the cloud:Standardized business logic
- 11. Simple, standardized infrastructure services (IaaS) like storage and compute power
- 12. Systems with fluctuating loadWhat remains on premise for a long time:Applications implementing customer’s intellectual property and competitive business logic will never go into SaaS, potentially onto IaaS and PaaS
- 13. Mission critical back-office applications
- 15. The most mission critical back office processes
- 16. Applications with constant predictable loadLevel ofsharingPublicPublic transportationVirtualprivatePrivatePrivate carsBusiness value
- 17. Agenda
- 18. Channel resellers want to growSource: Forrester/OCE Q3 2010 Global Channel Companies’ Cloud Business Models Online Survey
- 19. Channel resellers want to grow their business by adding new services Slightly, 34% in NA, 57% in EMEASignificant, 49%, 16%Double, 9%, 14%1% in NA, 10% in EMEASource: Forrester/OCE Q3 2010 Global Channel Companies’ Cloud Business Models Online Survey
- 20. Resellers product sales go down, services upSource: Forrester/OCE Q3 2010 Global Channel Companies’ Cloud Business Models Online Survey
- 21. Resellers are already providing managed servicesSource: Forrester/OCE Q3 2010 Global Channel Companies’ Cloud Business Models Online Survey
- 22. Resellers are planning for new managed servicesSource: Forrester/OCE Q3 2010 Global Channel Companies’ Cloud Business Models Online Survey
- 23. Those without managed services see these barriersSource: Forrester/OCE Q3 2010 Global Channel Companies’ Cloud Business Models Online Survey
- 24. So good resellers are changing their business modelsSource: July 10, 2009,“The Changing Yin And Yang Of Tech Vendors And Channel Partners” Forrester report
- 25. Forrester anticipates a “channel washout”15%MSPs/hosters can serve more customers + Increase in number of MSPs/hosters+ No significant increase in number of customersFewer channel partnersMSPs/hosters can serve more customers + Increase in number of MSPs/hosters+ No significant increase in number of customersMSPs/hosters can serve more customers + Increase in number of MSPs/hostersMSPs/hosters can serve more customersM&AThe best marketers1.2m channel partners
- 26. Agenda
- 27. Distributors are changing their orientationHistorically, distributors provided added value for vendorsInventory, financing, channel managementSales & marketingOften, a distributor specialized on just a few vendors (or just one)In the future, distributors will be providing a service for resellersVendor aggregationSales enablementMarketing platformHosting (physical or wholesale)
- 28. Distributors will continue to help resellersProblem“Solutioneer” itFinancing
- 30. 3rd party – Biz2Credit, On Deck Capital
- 31. Hook your reseller partners up with your MSP partners
- 32. Infrastructure investment is too high
- 33. Don’t understand the business model
- 34. Enablement/certification programBusiness model trainingMarketing trainingChannel enablement maturity curveSales trainingProduct trainingToo difficult to find/staff the people with the requisite skills
- 35. Add a people finder to your online partner community
- 36. Embed a job search engine – CareerBuilder, MonsterGood distributors will continue to adapt their business
- 37. Examples of distributors providing MSP platforms
- 38. Call to actionDistributors – Change or Die!Tech industry is overrun with distributing entities.Globalization, brand consolidation and cloud will prevail
- 39. To focus on physical product distribution, consolidate your portfolio and your vendors.
- 40. To expand your business and thrive in a cloudy market, turn your focus to the resellers’ needs.Call to actionVendors – Understand The Changes!Distributors will increase their influence over resellers.Product vendors must include distribution partners as a new communications route to resellers.
- 41. Understand how to sustain your brand while outsourcing marketing, sales and business model training to distributors. Resellers – Pick Your Distributor Strategically!Focus on your core competencies.Leverage your distributor for supporting services across many business processes.Thank youPeter O’Neill+1 650. 581.3864 +49 69 959298 39poneill@forrester.comwww.twitter.com/poneillforrwww.forrester.com
Editor's Notes
- #8: Source: Wipro Technologies (www.wipro.com)
- #23: Source: Ingram Micro: Seismic Managed Services (http://www.ingrammicro.com/ext/0,,23348_19722_23360,00.html).Source: Avnet (http://www.ats.avnet.com/services/index.asp).Source: Arrow Electronics: Arrow Fusion Cloud Services (http://ecs.arrow.com/services/cloud.html).Source: MSPmentor (http://www.mspmentor.net/2008/06/05/tech-data-vs-ingram-micro-on-managed-services/).
- #24: Source: Microsoft Clip Art
- #25: Source: Microsoft Clip Art