Have you ever been stuck in quicksand? Had the anxiety that you were sinking, and the world was closing in? Well, executives at resellers and other channel organizations in the high-tech world are having these feelings as the IT consumption model is changing, non-traditional IT buyers (in line-of-business) are purchasing solutions, and IT vendors are rapidly developing solutions that don’t fit into the traditional model of a one-time transaction with annual maintenance contracts. But despite these winds of change, ESG research shows that only 1 in 5 channel partners are evolving.
So what is holding channel partners back from reaching out, grabbing that branch, and pulling themselves out of the quicksand? ESG’s latest research (ESG Research, 2013 Channel Transformation Survey, November 2013) shows that channel partners are not evolving their businesses more rapidly because:
1) They are still making money the traditional way of selling products.
2) Customer demand is not strong enough (yet) to push them to evolve their business.
3) The vendor community is not pushing them hard enough to evolve.
4) They don’t have the right skills and people to evolve.
5) Channel partners are averse to change (business model, people, revenue recognition, etc.).
I have spoken with enough executives in the channel partner community to know they act differently when they understand how they can be profitable selling something different. This creates an opportunity for vendors to complete a detailed business analysis, and go to their partner community with a “lifeline” to get them out of the quicksand.