Recommended
Recommended
More Related Content
What's hot
What's hot (20)
Viewers also liked
Viewers also liked (15)
Similar to Tech Research Asia: Optimising the New Channel
Similar to Tech Research Asia: Optimising the New Channel (20)
Recently uploaded
Recently uploaded (20)
Tech Research Asia: Optimising the New Channel
- 1. Optimising the new channel Is there something wrong with the old one? Mark Iles mark@techresearch.asia February 2016
- 2. Vendor Distributor Reseller Customer Built to serve the largely transactional IT requirements of the centralised IT department Vendors sacrificed margin and invested in marketing for increased sales coverage and services/logistics support Pressure points came as customers demanded more vendor ”skin in game” and partners passed margins on to customers as competition increased Then cloud came and really ruined the party … Services MDF Margin Invoicing Rebates Logistics Credit Logistics MarginMargin Demand Gen CreditCredit Training Support Back to the Future
- 3. Packaged IP • Application (re) development • Industry specific applications • End User Centric services • Custom software development • Mobile applications • Application Packaging • Enterprise Application Delivery Margin: Up to 60% Managed Services • Critical Response Support • Server/Site management • Network Monitoring • Backups & DR • Anti-virus & Security monitoring • Device Lifecycle Mgmt • Desktop-as-a-service • Application Support Margin: Up to 60% Project Services • Deployment/Consulting • Identity, Access & Info Protection • Desktop VDI • Cloud Readiness/Migration Margin: Up to 30% Devices and SW Licensing • New smart mobile focused devices, Cloud licensing/subscriptions Margin: Up to 10% Moving to Managed, Cloud & Application Services to build regular annuity revenues Owning the device sale provides a foothold to enable increased services & cloud attach The future is all about the delivery of end user services and acceleration to the cloud The New Partner Battleground
- 4. Line of Business Solutions Business decision maker engagement Enabled by technology, priced by outcomes Customised solutions Industry expertise Deep solution expertise IT Core Services Managed Services SLA Agreements “As-a-Service” commercials Cloud friendly One stop shop Multiple technologies Led by Partners Supported by Vendors Vendors need to adapt The new breed of partners are building businesses that don’t rely on product margin / rebates from vendors Vendor partner programs need a radical rethink from today’s ‘Gold/Silver/Bronze’ approach Incumbency is not a right; vendors need to understand how their solutions map to these 2 core themes and how to be successful in engaging their audience New partnerships will be based on deep joint GTM propositions aligned to customer opportunities and joint investment programs rather than standard partner programs TRA’s view The move to delivery of ‘IT as a Service’ and deep industry solutions challenges vendor brand positioning and shifts the balance of power between vendor and partner Where to from here?
- 5. TRA Channel & Partner Research What we are doing Ongoing quantitative research conducted independently by TRA in conjunction with partner CRN. Customer/Channel/Vendor alignment check Product & Services margin and profitability Asia-Pacific partner advisory boards & forums Our output - unique data and insights for: Partner education, market trends, developments, issues Checklists & advisory for target markets and businesses Market reports, white papers, collateral, go-to-market content, blogs Channel optimisation, consulting, structure
- 6. What is Tech Research Asia? Consulting & Technology Analyst firm Founded July 2012 Geographic Focus: Asia Pacific Partners: CIO Academy Asia, Techleadgen.com, SE- Corp, NextMedia (CRN & ITNews) We have a strong mix of highly experienced industry analysts, journalists, change management experts and ex-CIOs & CEOs
Editor's Notes
- Two key business models are emerging: Managed Services and Cloud Services providers focused on delivering core IT services with “as-a-service” user based pricing - $194bn market by 2019 Custom Application and Solution Developers working with lob decision makers on strategic growth initiatives More acquisitions likely as existing partners look to build more scale and efficiencies to drive MSP profits or add profitable specialist custom solution skills Mobile business apps market to reach $53bn in 2017 – Strategy Analytics Spending on mobile enterprise business apps will more than double from $26 billion in 2012 to $53 billion in 2017, research firm says - See more at: http://www.information-age.com/technology/applications-and-development/2143973/mobile-business-apps-market-to-reach-$53bn-in-2017---strategy-analytics#sthash.T3BNRFnk.dpuf
- How vendors are changing? 2015 Vendor Activity: Riverbed, Sophos/Reflexion, HP/Aruba, Bluecoat, En Pointe, Nokia/Alcatel-Lucent, Cisco/Piston, Fortinet/Meru, EMC/Virtustream, Accuvant/Fishnet (Optiv), Software One/Compucom, Intel/Altera, Avago, Broadcom, Charter Comms/Time Warner 2015 Channel Activity: Accenture/CRMWaypoint, Accenture/Formicary, Avnet/ExitCertified, CapGemini/Oinio, Cognizant/Kbase, Leidos/Lockheed Martin 2015 AUS Channel Activity: Dialog/Lynx IT, Melbourne IT/Outware Mobile, Deloitte/Dataweave, BigAIR/Applaud IT, Melbourne IT/Uber Global, Crucial/AVS Networks, TPG/iinet, Vocus/Amcom, KPMG …. Private equity participation in channel mergers and acquisitions in 2015 accounted for approximately 66 percent of the revenue of the 21 North American transactions identified by Martinwolf M&A Advisors, a global IT investment firm. Of the 21 North American transactions identified by Walnut Creek, Calif. based Martinwolf in 2015, 11 of them featured private equity buyers. "Today, the dominant players in the market for VARs are not other IT solution providers, but instead private equity firms," said Marty Wolf, founder and president of Martinwolf in an interview with CRN. "What's more, the number of these transactions is increasing. As private equity firms add IT solution providers to their portfolios, one of their first steps is often to use their initial investment as a platform for further expansion into the space." The significant private equity cash infusion backed up by "proven executives and operating capital" is helping solution providers transform into higher-margin, services-rich businesses, said Wolf. "Thanks to their broad presence, they are also able to bring a fresh perspective that is unburdened by 'channel thought,'" said Wolf, whose company has done more transactions over the last two decades involving CRN SP500 companies than any other investment adviser. "Rather than worrying about maintaining vendor relationships, always a key priority for VARs, and doing things the way they have always been done, investors prioritize customer relationships and investment returns," said Wolf. "It's pinpoint decisions, not blanket investing -- and the result is essentially zero-based budgeting, on an investment scale." Evolution is not mandatory but then again neither is survival