The Cloud channel partners are operating between the raindrops. Techaisle’s channel survey trend data clearly shows that the sources of competition and channel conflicts for cloud business is increasing thereby creating untenable conditions for many channel partners. From 2013 to 2017, the percent of channel partners experiencing competition from vendors has gone up by 15 percent whereas from distributors it has increased by 55 percent.
At a high level there are three types of channel conflict:
- Competition between the vendor and its channel partners,
- Competition between distributors and channel partners, and
- Competition between similar types of channel partners (e.g., VAR/VAR).
Figure below shows the trend data from 2013 to 2017.