The 2112 Group Releases New Report: ‘Strategies for Engaging Automated Digital Sales Channels’

2112 reveals that 11 percent of channel chiefs believe most of their indirect revenue will come from automated digital sales by 2023.

 

New research by The 2112 Group finds that automated digital sales (ADS) channels will be many vendors’ second- and third-highest source of indirect revenue over the next five years.

According to the findings, ADS will disrupt the existing channel, become a primary source of vendor indirect revenue, and strengthen channel partners that can deliver professional, managed, and integration services.

“ADS channels will not completely replace existing channels. The complexity of certain technologies and sales will continue to necessitate partner involvement, but we believe sales of less complex and commoditized products will transition to ADS channels,” said Lawrence M. Walsh, CEO and chief analyst of The 2112 Group. “Partners that can execute against cloud computing and recurring-revenue models, as well as manage workloads and business functions on behalf of customers, will provide the greatest return to both ends of the channel value chain.”

“Partners that can execute against cloud computing and recurring-revenue models, as well as manage workloads and business functions on behalf of customers, will provide the greatest return to both ends of the channel value chain.” Lawrence M. Walsh, CEO and Chief Analyst

ADS does not come without risks. Independent marketplaces such as Amazon have much greater visibility into customer purchasing patterns than vendors, which gives them an upper hand in the go-to-market relationship. Further, vendors that move into marketplaces will create a tremendous amount of conflict with legacy channel partners. In addition, vendors adopting ADS strategies will put themselves at a “first-mover disadvantage,” with competitors trying to undermine their transition by attacking their legacy channel and disrupting partner sales.

The full report is now available in The 2112 Group Library.

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