In the world of cloud and SaaS computing solutions, where do channel partners go for support? IT VARs historically have worked with their vendors and distributors, while agents have worked with carriers, CLECs, and other voice and data providers. The increasing adoption of cloud-based services is causing IT vendors and service providers alike to rethink the role and investment requirements of partner automation, communication and collaboration tools.
Effective partner automation systems can — and should — be a competitive differentiator for both vendors and their service provider partners. With any new service, the challenge lies in identifying the key functions and attributes required of such a system. For example, cloud services are sold both directly and through multiple channels (agent/referral, resale and white-label) and many cloud providers offer all of these go-to-market options. And their systems must support the partner engagement that goes along with all of the options.
The inherently multivendor nature of cloud solutions adds further complexity as IT VARs, seeking to maintain or improve their vendor program status, want to ensure they get appropriate revenue credit, MDF and rebates for selling or influencing, e.g. a Cisco- or NetApp-based cloud service.
Partner automation systems for cloud services are a growing challenge and, more and more, it appears that the large service providers are viewed as critical players in solving the puzzle.
In a recent channel research project conducted by Amazon Consulting, 70 percent of IT vendors now consider the large telecom service providers as highly strategic partners, whereas in the past, they’ve been treated primarily as a direct customer. These vendors already see most of the leading service providers building and expanding their own channel programs and in many cases are supporting the carriers’ efforts with program support and marketing and sales development funds. In return, the IT vendors are looking to access the service providers’ end-users and existing partners and, as importantly, to leverage the back-office, billing, provisioning, support and contract management systems, which are important in delivering cloud services.
This automation deficit shifts the focus even more to the service providers, who, ironically, often have limited partnering DNA and systems support beyond the basic program offerings of agent fees and wholesale discounting. Several companies, however, are making the requisite investments to turn this industry shortfall into a strategic and competitive advantage.
