2010 in Review: Where Do We Go from Here?

January 31, 2011 at 3:24 pm Leave a comment

Amazon Consulting’s December 15th webinar entitled 2010 in the Channel: A Year in Review took a hard look at some of the key issues that impacted the technology community this past year. This roundtable discussion was aimed at offering webinar attendees, both solution providers and vendors, insight as to ways in which they should be retooling their 2011 strategies in response to these industry changes and trends.

While the economic downturn of 2009 has rebounded slightly, things are by no means back to the status quo. Those companies who did not modify their business to the changing economic dynamics of the marketplace clearly struggled. This challenge has been compounded by a drive to cloud computing and cloud services technologies that is moving at breakneck speed. In fact, these two factors have combined to create a perfect storm that has forced many companies to shift more quickly than they would have liked from a CapEx model to an OpEx one. It has also raised some serious questions among vendors as to which parts of the services business they should deliver themselves versus which ones they should partner with.

Business model choices rather than business size or type seemed to be the leading factors in helping solution providers weather the storm in 2010. Working to become recession-proof is a driving force for many businesses, and is accelerating the push towards subscription-based rather than hardware-based sales and services. These models are being supported by other trends including virtual workforces and partner contracting, that have come as a direct result of businesses being forced to do more with less as well as being able to leverage the talents and capabilities of highly qualified partners who have become contractors after being laid off due to corporate downsizing.

Engaging and empowering partners was seen as a critical objective for 2011, and one that needs to be escalated in view of end users’ rapid migration to cloud computing. As the adoption of ‘pay-as-you-go’ services continues to soar, end users will continue to look to resellers for assistance with network integration and other software concerns. Rather than simply selling licenses, resellers will need to step up the value they offer and take a more active role in assessing customer needs, identifying the right solution to address them and working as an active partner to deliver it. In order to ensure channel partners have the knowledge and tools they need to be successful on this front, vendors are being tasked with providing much needed business intelligence. Channel partners are hungry for knowledge. While webinars and conferences are a start, vendors will need to commit in one-on-one business planning to help their channel partners understand, navigate and profit from the current business model shift.

For more information, you can access the full webinar, 2010 in the Channel: A Year in Review here.

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

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