Archive for December, 2010

Investing in a New Technology: Are IT Solution Providers ROI Expectations in line with those of the Vendor?

By Beth Vanni, Vice President – Amazon Consulting

In a recent study of 184 solution providers on their vendor partnerships, over 40% indicated they want a 2x ROI on their investment in a new technology or vendor line in the first year.  A smaller group, 12%, expect an even higher investment of 3–5x, and 27% are willing to just break even.  Another 20% are satisfied to not even break even in the first year, as long as there is a demonstrated build in customer demand.

Resellers and systems integrators, those with typically less investment of intellectual property and assets, had the highest expectation for ROI in that first year.  MSPs and ISVs, those partners typically building long-term commercial products and service infrastructure, were more comfortable with breakeven or even less in the first year.

Whether you’re a tier one platform for your channel partners, or just an important enabling technology, understanding the ROI expectations and appetite and timing for investment from your partners is more critical than ever.

Download the FREE Executive Brief on this comprehensive research from Amazon Consulting: From Rookie to Rock Star: Accelerating the Development of Channel Partnerships to learn more about vendor/channel partner alignment around developing new technology relationships.

Also see the webinars: Rookie to Rock Star: Accelerating the Development of Channel Partnerships.

Rookie to Rockstar II: The Solution Provider’s View on Developing

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December 21, 2010 at 3:47 pm Leave a comment

The 80/20 Rule is Alive and Well. How Leveraged Should your Channel Be?

By Beth Vanni, Vice President, Amazon Consulting

A recent Amazon Consulting exclusive channel study reports shows that 56% of vendors have less than 20% of their partners representing more than 80% of their channel revenue.  And further, 52% of solution providers are equally leveraged with their top 1-2 longstanding vendors lines, which represent 75% of their revenue.

Being this highly leveraged with a small number of partners will become increasingly challenging if vendors do not align their spending and resourcing to their most productive partners while continuing to strategically develop or recruit new channel partnerships. (more…)

December 20, 2010 at 3:40 pm Leave a comment

Dreamforce 2010

2011 — the “Year of the Platform”

San Francisco’s Moscone convention center was its normal bustling self early this Monday morning. But, at this year’s 8th annual Dreamforce event, the buzz around new application development tools and Platform as a Service (PaaS) innovation was at an all-time high.
This year’s event boasted 30,000 registered attendees (up significantly from last year). But attendees this year seemed to look a lot more like a classic developers – heads deep in smart phones and iPads, dressed in jeans and baseball caps and listening intently to the technical teams reviewing product architectures. (more…)

December 20, 2010 at 8:00 am Leave a comment

Reevaluating the Timing and Costs of Recruiting New Channel Partners

A ‘perfect storm’ brewing around the issue of channel development

By Beth Vanni, Vice President, Amazon Consulting

A variety of economic and industry innovation elements are currently combining to create the “perfect storm” of channel development issues including:

A rash of disruptive technologies entering the market

A slowly rebounding economy within a still-uncertain economic environment

Continued industry consolidation among vendors and solution providers

These challenges are accelerating the issue of how technology vendors and solution providers can continue to work together to grow their mutual success. (more…)

December 15, 2010 at 6:24 pm Leave a comment

ExactTarget’s New Automated Directory Hits a Bulls Eye with Partners and Customers

Amazon Consulting helps the online communications vendor harness the power of its partner network by creating a powerful automated channel directory. The result: A measurable increase in partner and customer satisfaction.

By Diane Krakora – CEO

Online communications company ExactTarget has an extensive global network of channel partners to provide marketing consulting, technology services and world-class support across all areas of the interactive marketing experience. Since its inception, the company manually maintained its online channel directories. The directories lacked coherence and continuity, information and updates were spotty at best, and there was no consistency in terms of branding or message. Visitors to the site who needed to find partners or solutions were viewing inconsistent content and outdated profiles.

Exact Target knew this was obviously a less than optimal way to grow their customer base and turned to Amazon Consulting for help. “As customers doing business with other technology companies, our partners had certain expectation levels based upon their interaction with the other technology sites. ExactTarget was falling short,” explained Tom Williams, ExactTarget Director of Channel Operations. “We needed a tool that would support the partner ecosystem across all our various relationships.”

Amazon Consulting leveraged its PartnerPath Partner and Solution Directory tool to create Nexus, a new automated directory exclusive to ExactTarget. Nexus helped the company to:

-Completely automate the creation and updating of partner profiles

-Migrate responsibility to partners for updating their content

-Enable customers to gain easy access to resellers that meet their specific requirements

-Provide valuable feedback to partners through online customer review capabilities

-Ensure consistency of branding and messaging

ExactTarget management says Nexus has exceeded their expectations, setting a new standard for vendor and reseller partnerships.

To learn more about how Amazon Consulting’s PartnerPath Partner and Solution Directory module created a compelling solution for ExactTarget, click here or download it from the resource center at amazonconsulting.com.

December 13, 2010 at 4:12 pm Leave a comment

Partners’ Use of Social Media

By Diane Krakora – CEO

My day 2 at the Cisco Velocity event in Barcelona started with a press and analyst briefing with about 10 Cisco partners and a discussion around their use of social media. They tried valiantly to communicate three main points. First, the partners are using Facebook primarily to recruit new employees into their organization. They’re not using it as a customer lead generation tool as of yet. Second, they’re using Twitter to keep up to date with their VENDORS’ quarter channel promotions. And third, they’re engaging in blogging and commenting on blogs because they say “conversations are happening about our industry and technologies, why would we not want to participate?”

Video: http://www.youtube.com/watch?v=zF_4UXNFrFI

December 9, 2010 at 5:31 pm Leave a comment

Bridging the Gap Between Strategic Alliances and Channel Partnerships

By Cary Tengler – Senior Consultant, Amazon Consulting

In recent years, economic conditions have driven companies to emphasize the channel side of their business as a way to meet their need for immediate revenue. As the economy begins to recover and technology vendors are somewhat more secure in the short-term, this sense of urgency is being replaced by a shift in focus back to long-term growth. With that comes a renewed desire to balance their business activities through more integrated models that include strategic alliances. But, as industry studies have shown, although 92% of U.S. technology companies agree that alliances are important to their current and future growth, most agree that monetizing those strategic alliances with go-to-market planning and execution is a challenge.*

Amazon Consulting’s recent acquisition of PartnerAlliances will provide us with the unique and compelling ability to offer our technology clients an end-to-end suite of services and expertise, bridging both channels and alliances. (more…)

December 9, 2010 at 5:24 pm Leave a comment

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