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

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

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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Entry filed under: Industry Perspective. Tags: , , .

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