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    2019 Top 10 SMB Business Issues, IT Priorities, IT Challenges
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    Transformation or Consolidation
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    Delivering Connected Business
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    US SMB & Midmarket SaaS Adoption
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    Technology adoption trends by IT sophistication
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Techaisle Blog

Insightful research, flexible data, and deep analysis by a global SMB IT Market Research and Industry Analyst organization dedicated to tracking the Future of SMBs and Channels.

Techaisle data shows channel transformation has been challenging and split in the middle

Channel is okay. Channel is not okay. The answer depends upon whose perspective you listen to, how they define channels and how they are measuring channel transformation. Techaisle studied 814 US channel partners with revenue ranging from US$500K to US$50M and number of employees from 9 to 1200. Measured against 12 points of Techaisle’s channel transformation imperatives, only 5 percent of partners are nearing completion of their transformation journey. Data also shows that the channel transformation is split right in the middle. 52 percent of partners are transformation followers and 48 percent are transformation leaders. 45 percent of partners are in initial stages of transformation working on an average of 5.3 of the 12 imperatives.

Most vendors including Microsoft, SAP, IBM, Cisco and distributors such as Ingram Micro are focusing their efforts in helping their partners transform their business models but the channel has been slow to adapt to rapidly changing environment.

Let us discuss three areas that are priorities for IT suppliers, where channel is falling short and what is Techaisle’s recommended transformation timeline.

  1. Transforming from "sales quotas" to "book of business" - whole customer
  2. Transforming from "value addition" to "value creation", - business performance
  3. Transforming from "lead generation" to digital discovery" - reducing reliance
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How can suppliers identify cloud partners most likely to be successful

How can cloud suppliers identify the partners most likely to be successful or very successful in selling cloud? Techaisle’s 7th year of channel tracking survey data indicates that a powerful indicator is found in the growth paths identified by channel firms.

Characteristics of very successful cloud channel partners (“what to look for”)

  • Very successful cloud channel firms view advanced solutions as major opportunities and are focused on growing business in BI/analytics and IoT
  • Very successful cloud firms recognize that hybrid IT is the key and are anticipating increased revenue from data and/or application integration than their less successful peers
  • Nearly 90% of very successful cloud channel firms (as compared with just 23% of unsuccessful firms) offer IaaS to SMB customers
  • Over 90% of very successful cloud partners offer SaaS today. Less than one-third of unsuccessful cloud partners offer SaaS, and 20% neither offer it nor are planning to do so
  • Successful cloud partners view partner-to-partner (P2P) relationships as a strategic imperative, whereas unsuccessful partners connect with other channel firms on an opportunistic basis
  • There is a clear, multi-year trend of very successful cloud channel partners differentiating themselves by selling self-branded (and supported) cloud offerings
  • There is strong evidence in data to support the notion that very successful cloud partners are focused on assembling multi-sourced solutions to meet customer needs, 57% of very success cloud partners as compared to 31% of unsuccessful and 34% of successful partners
  • Three-quarters of very successful and nearly 70% of successful cloud partners offer UCaaS, vs. just 20% of unsuccessful firms
  • Successful channel firms are actively participating in cloud and IT orchestration and are investing in technology advisory & architects
  • Digitalization & digital transformation are new focus areas of very successful channel partners

What to look out for – characteristics of unsuccessful cloud partners

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12 points for Cloud Channel Transformation

Recent work by Techaisle shows that the need for channel management imperatives has expanded beyond the tactical questions of sales or management metrics or marketing activities. Techaisle has identified twelve fundamental areas where conventional wisdom has not kept pace with the fast emerging business needs of the channel. Channel policies based on conventional wisdom and past history is leading channel organizations away from the practices needed to compete successfully in the cloud market. Techaisle has developed 12 points for transformation of SMB channels table to illustrate ways that channel organizations must alter basic attitudes towards their business in order to be successful in the current and future IT market. Table below compares old model with new model with imperatives that are losing relevance with those that are emerging.

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Dell’s Channel Chief Cheryl Cook continuing to motivate partners

Dell has been busy, its channel partners are increasing their likeability of the company, and Cheryl Cook, Vice President of Dell’s Global Channels & Alliances is staying steady on her path to grow and maintain channel partners who add value to their customers. In Techaisle’s latest US SMB Channel Partner Trends survey, 57% of both Dell & non-Dell partners said they “Like” Dell, up from 53% a year ago and substantially higher than two years ago. In Q4, total North America partner revenue was up and while majority of North America channel partners showed growth, Dell’s distribution partners experienced double digit growth.

In a recent discussion with Techaisle on the state of the Dell channel, Cheryl Cook focused on:

  • Partner direction
  • Partner experience
  • Partner competencies
  • Partner cloud playbook
  • Partner investments
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