Posts tagged ‘VAR’

The New “VAR”

By Diane Krakora, CEO

You are probably thinking “Diane, the ‘VAR’ label, is so passé – get with the times, girl.” And you’re right. We transitioned off the ‘VAR’ label to ‘Solution Provider’ years ago, as reselling took a back seat to providing the customer with a full solution to their business needs. If you’ve been paying attention to our briefs and blogs over the last couple of years, you’ve seen us postulate completely moving off labels as ‘nouns’ to the use of ‘verbs’ for the indirect channels. What do the partners do – resell, refer, influence, bundle, service?  Instead of Reseller – they resell. Instead of MSP –they provide managed services. Instead of Consultant – they refer business.  So why am I now promoting a new “VAR?”

In the world of the cloud, the value of the indirect channel to the customer is in their relationship – the services they provide outside of the purchase of the “product” (which is likely also purchased as a ‘service’).  The product evaluation and selection is still an important role for the partner – however their new services are cloud integration, orchestration and management. Thus it is the relationship with the customer that matters in the cloud world. The partners’ future role will be consulting, advice, suggestions, business process recommendations, transition planning and immediate response when something goes amiss (and it does!).

The vendor side of this equation also values the relationship the partner has with their customer. In a SaaS or cloud model, the vendor isn’t looking for partners to install and configure a solution. They need partners that can sell the solution, drive customer satisfaction and ensure the renewal.  Thus we see the “traditional” VARs – focused on adding value to the reselling motions with design, installation and configuration services – transitioning to a new “VAR” – one focused on the value they foster in their relationships.

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November 14, 2011 at 6:03 pm Leave a comment

ISVs Still the Strategic Channel Segment at Salesforce.com

Strong Growth and Enhanced Toolset for SaaS Developers Announced

Beth Vanni  –  Vice President, Amazon Consulting  

When Denzil Samuels, Salesforce.com’s new Channel Chief, asked how many people in the partner keynote session of last week’s Dreamforce event were developing applications using the company’s Force.com platform, about 75% of the audience’s hands shot up.   This response reflects the very development-centric make-up of the SaaS leader’s current channel ecosystem.  And, with stats like 97% growth of software OEM partners, 90% increase in ISV revenues and 210% increase in the number of ISV orders, it’s hard to argue this ongoing developer focus. (more…)

September 7, 2011 at 2:57 pm Leave a comment

To Write or Not to Write – Hasn’t that Always Been the Question?

Can yesterday’s VARs ever emerge as tomorrow’s Cloud developers?

Beth Vanni – Vice President, Amazon Consulting

When your children are young, it’s hard as a parent to not sit longingly and dream about all the wonderful things your kids could be, could learn, could accomplish.  Can they apply themselves in school enough to be a doctor?  Will they do humanitarian work?  Is pro sports in their future? How can they live up to their full potential, and how can I as a parent help them do that?

The long-standing debate about whether the generalist VAR business model is a thing of the past reminds me of this brain teaser.   Should VARs “grow up” and invest in a datacenter to become an MSP?  (more…)

August 8, 2011 at 4:45 pm 1 comment

Do or Die: To Cloud or Not to Cloud

by Sallie Martin, Consultant

We all know it… the Cloud is coming onshore quickly.  How VARs will fit into this new model is of abundant concern.  The first step is deciding whether to stay in the on-premise-only model or test-your-toes-in-the-Cloud pool.  In my opinion, if you wait too long, the answer will be made for you.

Customers are starting to understand the cost and flexibility benefits of the Cloud.  If you as a VAR are unable to have these conversations with them, then quite simply they will find someone that will.  This is a perfect door opener for your competition to enter into your best accounts.  A benefit of the Cloud is the reduced time for deployment of offerings.  This includes sales cycles, and your Cloud-savvy competitor isn’t going to wait for you to join the game.

If you are still on the fence post, talk to your favored vendors to understand their Cloud model.  Talk with a trusted Service Provider to understand how you can partner with them.  Read up on the areas that can affect your business such as different billing adaptations, new sales and consulting skills, and financial models.

The Cloud is one of the largest trends to hit technology in awhile.  The longer you put off starting the process, the greater the opportunity cost of missing the financial benefits. Adopt or be left behind.

July 25, 2011 at 5:56 pm Leave a comment


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