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Almost every large tech company relies on its channel partners to sell and deliver a meaningful part of their total volume. Most of these partners were recruited when tech was sold to the customer as an asset or license accompanied by high implementation complexity. OEMs valued the ability of partner’s sellers to reach the nooks and crannies of the market that they did not want to sell to directly. They paid the partner from the considerable up front revenue of the product sales and then allowed the partner to directly deliver the services the end customer needed to become operational. Those two things – re-sell and service – were the cornerstone activities that OEMs built their partner ecosystem to do. But today, it’s rapidly becoming an XaaS world. That means selling subscriptions with long revenue tails, an increased ability for customers to purchase and provision technology online without the involvement of a partner and a new portfolio of service activities that all rely on customer usage data – something the partners can’t currently access. So what is the future of the channel? How will OEMs re-shape their partner requirements, compensation models and next generation service for their SaaS, Managed Services and other XaaS offers? This session will examine how things could unfold, which types of partners are at risk and what OEMs must do to keep their channels productive.
President and CEO, TSIA
Publish Date: May 10, 2019
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Peg Rodarmel, SVP, Subscription Services, Infor
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