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2012 State of Partnering
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2012 State of Partnering

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The results have poured in from our 6th Annual State of Partnering research. This year’s study was the biggest and most comprehensive yet – with 98 global vendors and 250 solution provider participants.

This year’s study focused on several key partnering topics including enablement, cloud engagement models, field sales coverage and channel spending trends.

Published in: Business, Technology

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  • World Economic Forum:Information Communications Technology (ICT) is a key enabler of a more economically, environmentally and socially sustainable world in the aftermath of one of the most serious economic crises in decades.
  • This broad set of data is organized across three elements: Growth Strategies, Enablement Plan and Investment Plans. The first is growth strategies:The drive for new business and regaining topline growth in 2011 is a big priority. This will support a continued focus on deal reg. programs and partners driving new businessMSPS and services providers who are driving the next generation of IT as a service have increased in focus significantly from last year Cloud engagement models are emerging quickly with a variety of ways for vendors and their partners to programmatically engageSo, let’s look at the data that supports these themes ….
  • This broad set of data is organized across three elements: Growth Strategies, Enablement Plan and Investment Plans. The first is growth strategies:The drive for new business and regaining topline growth in 2011 is a big priority. This will support a continued focus on deal reg. programs and partners driving new businessMSPS and services providers who are driving the next generation of IT as a service have increased in focus significantly from last year Cloud engagement models are emerging quickly with a variety of ways for vendors and their partners to programmatically engageSo, let’s look at the data that supports these themes ….
  • This broad set of data is organized across three elements: Growth Strategies, Enablement Plan and Investment Plans. The first is growth strategies:The drive for new business and regaining topline growth in 2011 is a big priority. This will support a continued focus on deal reg. programs and partners driving new businessMSPS and services providers who are driving the next generation of IT as a service have increased in focus significantly from last year Cloud engagement models are emerging quickly with a variety of ways for vendors and their partners to programmatically engageSo, let’s look at the data that supports these themes ….
  • Other:Geographical coverageimplementation services against a business problem
  • This broad set of data is organized across three elements: Growth Strategies, Enablement Plan and Investment Plans. The first is growth strategies:The drive for new business and regaining topline growth in 2011 is a big priority. This will support a continued focus on deal reg. programs and partners driving new businessMSPS and services providers who are driving the next generation of IT as a service have increased in focus significantly from last year Cloud engagement models are emerging quickly with a variety of ways for vendors and their partners to programmatically engageSo, let’s look at the data that supports these themes ….
  • This broad set of data is organized across three elements: Growth Strategies, Enablement Plan and Investment Plans. The first is growth strategies:The drive for new business and regaining topline growth in 2011 is a big priority. This will support a continued focus on deal reg. programs and partners driving new businessMSPS and services providers who are driving the next generation of IT as a service have increased in focus significantly from last year Cloud engagement models are emerging quickly with a variety of ways for vendors and their partners to programmatically engageSo, let’s look at the data that supports these themes ….
  • Transcript

    • 1. 2012: The Threshold of the Next Wave of IT Growth Part I - The Vendors’ Plans January 26, 2012PartnerPath 2012 1
    • 2. We Elevate the Impact of Your PartneringPartnerPath is the onlycompany with a holisticapproach todesigning, implementing andautomating go-to-market Centricmodels to increase impact and Accomplishedawareness Reliant Tolerant NovicePartnerPath 2012 2
    • 3. Research Overview 6th Annual Study 98 diverse vendors responding:  45% global, 42% N. America  50% <$500M , 41% >$1b  Software & networking focus  Avg. 42% revenue through partners 248 N. American solution provider respondents (1:1 interviews) Broad array of plans and prioritiesPartnerPath 2012 3
    • 4. Panelists Paige Erickson Bill Cate V.P., North American Partners & Alliances Sr. Director, Global Partner Programs PartnerPath 2012 4
    • 5. Discussion1. Market Outlook2. Enablement Activities3. Professional Services & Cloud Investments4. Staffing and Organization5. Channel SpendingPartnerPath 2012 5
    • 6. Audience Poll What kind of year do you predict for your partnering efforts in 2012? a. Bullish – we’re investing for major expansion & growth b. Shifting – we’re using our existing resources in different ways to get better results c. Renovating – we’re making major changes in our strategy or program structure d. Coasting - we’ve made lots of investments & changes recently and will ride the wave & manage for results e. Not exactly surePartnerPath 2012 6
    • 7. Poised for Big Growth …? 2007 2009 2011 2008 2010 2012PartnerPath 2012 7
    • 8. Market Outlook Revenue Forecast <$5 Million $5 - $20M $20 - $50M $50 M+ 100%Solution providers very optimistic 80% about 2012 revenue 60% 40% Vendor’s top metrics – 20% new business, marketshare 0% Increase Decrease Remain the same Top Value Metrics: 1. New business 2. Competitive marketshare gains 3. Customer satisfactionPartnerPath 2012 8
    • 9. $20 M+ <$20 MMarket Outlook Decisions are more cost driven But, customer decisions are still More cost-driven virtualization/cloud solutions They are delaying And access to capital restricts smaller upgrades partners’ service investment Fixing instead buying new 0% 20% 40% 60% of <$20M partners $20M+ Partners re: challenges: “The economy; people are cutting back and letting go of employees” “Getting people to spend money” “Slow payment” PartnerPath 2012 9
    • 10. Discussion1. Market Outlook2. Enablement Activities3. Professional Services & Cloud Investments4. Staffing and Organization5. Channel SpendingPartnerPath 2012 10
    • 11. 2012 2011 2010Enablement Activities Doing effective pre- sales discovery Sales skills still a big vendor priority Selling value to LOB decision makers Developing vertical solution or selling approach Selling LOB value is focus Enhancing technical skills with specialization Selling & marketing an annuity-based service Enhancing post-sales professional services delivery 0% 10% 20% 30% 40% 50% 2012 Top Vendor Priorities 1. Ease of doing business – 46% 2. Recruiting the right partners – 38% 3. Increasing partners’ sales skills – 28% PartnerPath 2012 11
    • 12. Enablement ActivitiesFrom Technical to Sales - Where’s Services?2008 2009 2010 2011 2012• Sales into • New • Number of • New business • New key markets Only business customers 30% plan to offer business (horizontal served • Technical Prof. •Services training or or vertical) Customer expertise • Competitive satisfaction • New share IP with partners marketshare• New business • Competitive gains business • Specialized marketshare market • Market gains • Customer• Demand focus or focus/ satisfaction generation industry industry mktg. expertise expertise 9.) In 2012, what do your anticipate your companys most highly valued partner performance metrics, BEYOND sales volume? (choose top two) PartnerPath 2012 12
    • 13. Discussion1. Market Outlook2. Enablement Activities3. Professional Services & Cloud Investments4. Staffing and Organization5. Channel SpendingPartnerPath 2012 13
    • 14. Professional Services Investments  Partners focused on managed  Vendors want partners to build and cloud services Professional Services Partners Vendors Managed infrastructure services Cloud or managed applications as a service First line tech support Hardware break/fix repairPre-sales assessments and architectures Post-sale productintegration, testing & tuning 0% 10% 20% 30% 40% 50% QV: Around which type of services are you most interested in cultivating partner delivery skills in 2012?QP: Which of these services are you most interested in offering or expanding in 2012? PartnerPath 2012 14
    • 15. Cloud Services – Vendor Expectations  Vendors trying all Expect Partners To: engagement models for cloud 2012 2011 1. Resell their cloud services Sell infrastructure to partners to build services; no direct 2. Manage customer delivery relationshipProvide services directlyto end-user; use partners 3. Offer pre- and post-sale as sales agents Professional Services Sell to large Service Providers & help them 4. Refer sales to vendor recruit our partners as channel 5. Sell services for largeProvide services direct to Service Providersend-users; use partners as resellers 6. Build SaaS apps. 0% 10% 20% 30% 40% 50% Q: What primary role(s) do you expect partners to play Q: What will your companys positioning on offering IT as a service sales and/or delivery of your cloud solution(s) in or cloud-related services in 2012? (check top two) 2012? (check top two) PartnerPath 2012 15
    • 16. Cloud Services – Partners’ Plans  Solution providers of all sizes Expect Partners To: still taking a wait-and-see attitude 1. Resell their cloud <$5m $5 - 20M $20-50M $50M+ services80% 2. Manage customer70% relationship60% 3. Offer pre- and post-sale50% Professional Services40%30% 4. Refer sales to vendor20% 5. Sell services for large10% Service Providers 0% Likely/Very Moderately Not 6. Build SaaS apps. Likely/Very Q: How likely is your company to begin offering cloud solutions in 2012? (1 = "not at all likely," and 7 = “extremely likely”) PartnerPath 2012 16
    • 17. Discussion1. Market Outlook2. Enablement Activities3. Professional Services & Cloud Investments4. Staffing and Organization5. Channel SpendingPartnerPath 2012 17
    • 18. Partners’ Staffing Crisis $50M+ $20-50M $5-20M <$5M Trouble finding the right sales & technical talentStaffing/resources 2011 - 22% 2012 - 31% 0% 10% 20% 30% 40% “The biggest challenge is growing our business with the current staff that we already have without hiring more employees.” “Finding capable sales people, that is really the most important factor.” “Finding quality people in a weak economy; finding people who are educated in sales of services.” PartnerPath 2012 18
    • 19. Vendor Field Teams – Sales or Business Development? 2012 Vendor Staffing Plans No changes planned for 2012 Give them more support thru inside sales or help- desk functions Increase their training on business & financial management issuesActively involved in our business Increasing the number of people doing that jobplanning & support our growthplans Change compensation plan 25% to encourage long-term partner development Give less partners to coverOnly interested in their products or developand short-term sales 31% 0% 10% 20% 30%PartnerPath 2012 19
    • 20. Discussion1. Market Outlook2. Enablement Activities3. Professional Services & Cloud Investments4. Staffing and Organization5. Channel SpendingPartnerPath 2012 20
    • 21. Channel Spending – Refocus on Marketing Increase No Change Decrease Marketing funds 54% 43% 3% Rebates and other incentives 50% 44% 6% Deal registration incentives 48% 46% 6% Sales influence or agent fees 19% 75% 6% Reselling discounts 18% 69% 13% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 11.) How do you generally intend to change those spending percentages for 2012? (each coded as increase, no change, decrease)PartnerPath 2012 21
    • 22. Channel Spending – Refocus on Lead Generation & MDF 2012 2011 #1 Vendor Plan to Doing more lead generation Increase Partner for / with partners 42% 60% Profitability $20 M+ <$20M In annual revenues Increase or ImproveAdvertising/Marketing EffortsHire New Sales or Technical Employees Offer New, Higher-Margin #1 Partner Plan to Services Increase Revenue Add new product lines from current vendors Add new vendors lines 0% 10% 20% 30% 40% PartnerPath 2012 22
    • 23. Join Us Next Month State of Partnering Results: The Solution Providers’ Perspective Thursday, February 23, 2012 Guest Panelist: Mont Phelps, President & CEOPartnerPath 2012 23

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