Insights

Channelnomics’ new report shows how the channel is planning for the post-pandemic economy.

Partner enablement is a fundamental necessity in channel program operations and critical to go-to-market success. By empowering partners with information, skills, and resources, vendors increase the potential of achieving the results they seek when selling through various channels.

A year has passed since the COVID-19 pandemic swept the world, shutting down whole economies and disrupting lives.

In late winter 2022, Datto began entertaining offers to merge with another tech company.

Mary Beth Walker joins Channelnomics’ Changing Channels host Larry Walsh to discuss how HP’s new Amplify program is leveraging data shared by partners to improve channel sales and productivity.

The pandemic showed that selling through inside and virtual sales works. The question is whether to increase capacity even if it conflicts with channel partners.

The real story isn’t distribution consolidation; it’s evolving capabilities and value propositions

Getting partners to meet and exceed sales targets is a perennial challenge of channel chiefs. In 2021, channel chiefs and practitioners say their biggest challenges include getting partners to hit sales goals, adopt new go-to-market models, and take on new products and services. Competing with hyperscale marketplaces like Amazon is at the bottom of the list.

Every year, channel chiefs and program managers make choices about the size of their partner networks. Channel practitioners make program adjustments to increase and decrease their partner populations.

According to channel chiefs and program managers, the most effective incentives for driving partner behavior and performance include front-end discounts, free sales and technical training, and market development funds (MDF). While the market is evolving, the traditional channel incentives have staying power.

In 2021, channel chiefs and practitioners say support, innovative products, MDF, renewal policies, and recurring-revenue structures are the channel program elements that are most effective in driving partner performance.

Frank Rauch joins Channelnomics’ Changing Channels host Larry Walsh to discuss best practices for gaining top-down support from corporate executive leadership for channel strategies and programs.

Channel program budgets are increasing in 2021. The average channel budget is up 6 points over 2020. Most budgets are only increasing modestly (under 5%). The good news for channel chiefs: Only 10% of program budgets are declining – and only modestly.

The general partner outlook for 2021 is best described as muted. While 70% of partners expect growth of 5% or more, that’s 25 points lower than pre-pandemic expectations.

Chad Cardenas of TSG joins Channelnomics’ Changing Channels host Larry Walsh to discuss his model for getting partners to put skin in the game of startup technology companies through investments and channel commitments.

Meaghan Sullivan, Global Vice President of Partner Marketing & Mid-Market at SAP, joins Changing Channels to talk about Rising Up to Marketing Transformation.

Lori Cornmesser, VP Global Channel Sales at Infoblox, joins Changing Channels to talk about forging powerful connections in a virtual world.

HP Amplify Impact, which launches Feb. 11, 2021, is a new program to support the mission of becoming the world’s most sustainable and just technology company by 2030.

Pandemic fuels transformation and adjusted expectations, according to 2021 Channel Chief Outlook report

Services are endemic to the channel – particularly on the small-business level. The average SMB-oriented solution provider earns as much as 60% of its gross revenue from managed or professional services. Cloud computing – infrastructure and application services – make up another 15% of the revenue mix.

Partners say they’re already delivering quality as a value proposition; they need help mitigating risks to enable growth.

The year 2020 was forecasted by Channelnomics, formerly The 2112 Group, to be a year of “entrenchment,” with channel players facing the dual headwinds of commoditization and price erosion.

As vendors look ahead to the rest of 2021 and beyond, their channel chiefs are acting on the realization that COVID-19 has changed business models irreversibly.

The name change reflects the evolution of our mission and services to our valued clients.

Today’s solution providers have a lot of options when it comes to choosing vendor partners. At a time when high-caliber technology solutions are plentiful, partners can afford to be more discerning.