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.
1. 2012: The
Threshold of the
Next Wave of IT
Growth
Part I - The Vendors’ Plans
January 26, 2012
PartnerPath 2012 1
2. We Elevate the Impact of Your Partnering
PartnerPath is the only
company with a holistic
approach to
designing, implementing and
automating go-to-market Centric
models to increase impact and
Accomplished
awareness
Reliant
Tolerant
Novice
PartnerPath 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 priorities
PartnerPath 2012 3
4. Panelists
Paige Erickson Bill Cate
V.P., North American Partners & Alliances Sr. Director, Global Partner Programs
PartnerPath 2012 4
5. Discussion
1. Market Outlook
2. Enablement Activities
3. Professional Services & Cloud Investments
4. Staffing and Organization
5. Channel Spending
PartnerPath 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 sure
PartnerPath 2012 6
7. Poised for Big Growth …?
2007 2009 2011
2008 2010 2012
PartnerPath 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 satisfaction
PartnerPath 2012 8
9. $20 M+ <$20 M
Market 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. Discussion
1. Market Outlook
2. Enablement Activities
3. Professional Services & Cloud Investments
4. Staffing and Organization
5. Channel Spending
PartnerPath 2012 10
11. 2012 2011 2010
Enablement 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 Activities
From 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 company's most highly valued partner performance metrics, BEYOND sales volume?
(choose top two)
PartnerPath 2012 12
13. Discussion
1. Market Outlook
2. Enablement Activities
3. Professional Services & Cloud Investments
4. Staffing and Organization
5. Channel Spending
PartnerPath 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 repair
Pre-sales assessments and
architectures
Post-sale product
integration, 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 relationship
Provide services directly
to 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 large
Provide services direct to Service Providers
end-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 company's 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+
services
80%
2. Manage customer
70% relationship
60%
3. Offer pre- and post-sale
50%
Professional Services
40%
30% 4. Refer sales to vendor
20%
5. Sell services for large
10% 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. Discussion
1. Market Outlook
2. Enablement Activities
3. Professional Services & Cloud Investments
4. Staffing and Organization
5. Channel Spending
PartnerPath 2012 17
18. Partners’ Staffing Crisis
$50M+ $20-50M $5-20M <$5M Trouble finding the right
sales & technical talent
Staffing/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 issues
Actively involved in our business Increasing the number of
people doing that job
planning & support our growth
plans Change compensation plan
25% to encourage long-term
partner development
Give less partners to cover
Only interested in their products or develop
and short-term sales
31% 0% 10% 20% 30%
PartnerPath 2012 19
20. Discussion
1. Market Outlook
2. Enablement Activities
3. Professional Services & Cloud Investments
4. Staffing and Organization
5. Channel Spending
PartnerPath 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 Improve
Advertising/Marketing Efforts
Hire 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 & CEO
PartnerPath 2012 23
Editor's Notes
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 ….