We surveyed IT industry channel executives with three main questions in mind; IoT routes to market, channel programs of the future and smart outsourcing. The result was 77 responses, many of which came from heavy hitters in the industry including many of the top IT companies around the world. When we began to dig into the research, we found that we had uncovered some interesting trends as well as a fairly distinct differentiation between Enterprise and SMB level organizations and their opinions with regards to the future of the channel. What are your thoughts on our findings?

1. Channel Industry Experts Survey Results
IoT, Program Futures and Outsourcing

2. Personal Comments From Matt
CEO bChannels
Thank you for your interest in the outputs of this important survey of technology channel
executives. I wanted to highlight some key findings and add some personal comments.
- “We focused a whole section of the survey on the impact of IoT on routes to market. Well over half of the
people who responded expressed uncertainty in this area, while many are already executing on IoT channel
strategies. There is a clear difference in the readiness of large versus small organisations.”
- “All of us in the industry are beginning to understand the importance of IoT, and of AI, as a driver of channel
change. But few of us would claim to understand where it will lead. At bChannels we’re doing a lot of
work in this area, and it’s a focus for me personally. Do contact me if you want to talk more on this topic.”
- “The other response that really jumped out for me is that more than a third of larger companies expect
not to have partner tiering in their programs in three years’ time. I’ve talked to many channel leaders on
this topic, and I believe that’s an accurate reflection of where they stand on it. The emergence of developer
and service ecosystems is driving a lot of this.”
- “There’s a great deal of interest in the outputs of this survey. I’m sure you’ll get the same high value from it
as I have. I’d value the chance to talk with you about any of the issues raised. Email me on
matt@bchannels.com”

3. Around two thirds
of all companies
are unsure on the future
impact of IoT on channels.
Around 40% of larger
companies expect that partner
tiering will not be part of their channel
program in three years time.
77 Channel Executives
Participated in the Survey
One quarter of companies are
not seeingIoT as
important for their routes to
market.
Smaller companies are
15% less likely
to see IoT as important.
40% of companies
do not have IoT channels as a
business priority.
50% of companies
are notyet executing on IoT
channel strategy.

4. Executive Summary
bChannels Delivers the Future of Partner Networks. Recently, we spoke to 77 Channel Executives to understand the partner
eco system and produce actionable insights into what can be expected of the coming years in this industry.
Importance Of IoT
• Just over 75% of participants said that IoT was either important or very important to their organizations,
leaving an 25% of companies who do not see IoT as important to their route to market.
• Though 75% of companies felt that IoT was important to their businesses, only 60% said that it was an
immediate priority in business strategy discussions.
• When considering IoT, Enterprise level businesses are the forerunners in terms of execution. Participants
reported 75% of larger organizations currently executing on an IoT play, while only 25% of smaller
organizations are actively pursuing IoT.
• We have found that there are levels of uncertainty with regards to the future implications IoT will have on
their channels.

5. The Future Channel Program
• Close to 70% of companies believe that the structure of their channel program will be different in three
years time.
• Around 40% of larger companies expect that partner tiering will not be a part of their channel program
in three years time. More smaller companies expect to retain partner tiering as a part of their channel
programs.
• Both larger and smaller companies believe that increased partner profiling will be key to a successful
program in the future. With around three quarters increasing focus on engagement with annuity
partners.
Executive Summary Continued

6. Outsourced Sales and Marketing
• Around 25% of companies of any size expect to increase outsourcing of sales and marketing. There is
little difference between sales and marketing when it comes to increased outsourcing.
• Although companies don’t expect to increase outsourcing, they expect the nature of their outsourcing
relationships to change. This is slightly more the case for larger companies, and slightly more the case
for regional stakeholders.
• The top three channel sales and marketing areas outsourced today are MDF Management, Marketing
Material Development and then Partner Portal and Partner Training in joint third. MDF Management
is outsourced by one in three companies. Partner recruitment is outsourced by one in four companies.
Executive Summary Continued

7. IoT Routes to Market
See Speaker Notes for Commentary

8. 0%
25%
50%
75%
100%
Scored 5 or 6
Yes, strongly
Scored 1-3
Not So much
0%
25%
50%
75%
100%
Scored 5 or 6
Yes, strongly
Scored 1-3
Not So much
Importance of IoT to Channel Stakeholders
n = 77
Just over 75% of participants said that IoT was either important or very important to their organizations, leaving 25%
of companies who do not see IoT as important to their route to market.
Importance of IoT by Company Size Importance of IoT by Participants Role
According to our
research, smaller
companies are 15%
less likely to see IoT as
important to strategy.
Points to Consider

9. 0%
25%
50%
75%
100%
Scored 5 or 6
Yes, strongly
Scored 1-3
Not So much
0%
25%
50%
75%
100%
Scored 5 or 6
Yes, strongly
Scored 1-3
Not So much
IoT Channel as a Current Business Priority
n = 77
IoT is a Current Business Priority By Company Size IoT is a Current Business Priority By Participant Role
75% of participants felt that IoT was of high importance to their organizations, only 60% said it was currently a business
priority. Again, we see that smaller companies are less likely to prioritize IoT for within their organizations.
40% of
companies do
not currently
have IoT
channels and as
business priority.
Points to
Consider

10. 0%
25%
50%
75%
100%
Scored 5 or 6
Yes, strongly
Scored 1-3
Not So much
Understand and are Executing in Channel
n = 77
0%
25%
50%
75%
100%
Scored 5 or 6
Yes, strongly
Scored 1-3
Not So much
When considering IoT, there is a clear difference between Enterprise and SMB level companies in terms of current
IoT execution. On average the level of execution is only 50% of companies not yet executing on an IoT strategy.
We Understand the Vertical IoT Landscape By Company
Size
We are Already Executing our IoT Strategy By Company Size
In line with our
earlier findings, the
majority of IoT
execution is done by
enterprise level
companies. 75% of
enterprise
companies are
executing on IoT
strategies, while only
25% of SMB
companies are
executing.
Points to Consider

11. The Future Impact of IoT on Channel
0%
25%
50%
75%
100%
The Future Impact of IoT is Clear
By Company Size
Scored 5 or 6
Yes, strongly
Scored 1-3
Not So much
0%
25%
50%
75%
100%
We have the Right Channel Relationships
By Company Size
Scored 5 or 6
Yes, strongly
Scored 1-3
Not So much
n = 77
There are levels of uncertainty about the future of IoT both in large and small companies. Nearly 2/3 of companies
are unsure of the impact that IoT will have on the channel.
Points to Consider
Companies lack confidence
that they currently have the
right channel relationship in
place for IoT, particularly
smaller companies. Just less
than 50% of larger
companies believe they have
the right relationships in
place for IoT.

12. The Future Channel Program
See Speaker Notes for Commentary

13. 0%
25%
50%
75%
100%
My Program will be Different in 3 Years
By Company Size
Scored 5 or 6
Yes, strongly
Scored 1-3
Not So much
0%
25%
50%
75%
100%
My Program will be Different in 3 Years
By Respondee Role
Scored 5 or 6
Yes, strongly
Scored 1-3
Not So much
The Channel Program in Three Years Time
n = 77
Close to 70% of companies believe that the structure of their channel program will be different in three years time.
Points to Consider
What direction is the
channel moving, and is my
organization going to be
seen as an innovator or will
it be perceived as playing
catch up?

14. 0%
25%
50%
75%
100%
Partner Tiering will Remain in 3 Years
By Company Size
Scored 5 or 6
Yes, strongly
Scored 1-3
Not So much
0%
25%
50%
75%
100%
Partner Tiering will Remain in 3 Years
By Respondee Role
Scored 5 or 6
Yes, strongly
Scored 1-3
Not So much
Partner Program Tiering in Three Years Time
Around 40% of larger companies expect that partner tiering will not be a part of their channel program in three
years time. More smaller companies expect to retain partner tiering as a part of their channel programs.
Points to Consider
Three years ago, we would not
have seen 40% of larger
company channel executives
say they see partner tiering
being gone in three years. That
viewpoint has shifted as IoT
routes to market have
emerged.

15. 0%
25%
50%
75%
100%
We’ll be Doing More Partner Profiling
By Company Size
Scored 5 or 6
Yes, strongly
Scored 1-3
Not So much
0%
25%
50%
75%
100%
We’ll Focus More on Annuity Partners
By Company Size
Scored 5 or 6
Yes, strongly
Scored 1-3
Not So much
Partner Types and Partner Profiling
n = 77
Larger and smaller companies believe that increased partner profiling will be key to a successful program in the
future. With around three quarters increasing focus on engagement with annuity partners.
Vendors are looking to
understand partner
profiles and are adapting
their partner engagement
model to the needs of
each partner type.
Points to Consider

16. Outsourcing Sales & Marketing
See Speaker Notes for Commentary

17. 0%
25%
50%
75%
100%
We’ll Outsource More Program, Marketing
By Company Size
Scored 5 or 6
Yes, strongly
Scored 1-3
Not So much
0%
25%
50%
75%
100%
We’ll Outsource More Channel Sales
By Company Size
Scored 5 or 6
Yes, strongly
Scored 1-3
Not So much
Outsourced Sales and Marketing
n = 77
Around 25% of companies of any size expect to increase outsourcing of sales and marketing. There is little difference
between sales and marketing when it comes to increased outsourcing.
Points to Consider
Contrary to what we
would have expected, the
level of outsourcing for
sales in the future is not
greater than the level of
outsourcing for
marketing.

18. 0%
25%
50%
75%
100%
We’ll be Changing How we Outsource
By Company Size
Scored 5 or 6
Yes, strongly
Scored 1-3
Not So much
0%
25%
50%
75%
100%
We’ll be Changing How we Outsource
By Respondee Role
Scored 5 or 6
Yes, strongly
Scored 1-3
Not So much
Changes to Outsourcing Relationships
n = 77
Although companies don’t expect to increase outsourcing, they expect the nature of their outsourcing relationships
to change. This is slightly more the case for larger companies, and slightly more the case for regional stakeholders.
Points to Consider
Larger vendors are
moving towards ‘Smart
Outsourcing’. This means
more focus on
measurement, pay by
results, and closer and
more strategic
engagements.

19. Which Of These Processes Do You Outsource Today?
n = 77
The top three channel sales and marketing areas outsourced today are MDF Management, Marketing Material
Development and then Partner Portal and Partner Training in joint third. MDF Management is outsourced by one in
three companies. Partner recruitment is outsourced by one in four companies.

20. Contact us at www.bChannels.com
and enquiries@bChannels.com
Thank You