Overview

Challenges

To maximize channel-led XaaS revenue, vendors must address the root cause of low partner adoption by designing offers that prioritize partner outcomes: differentiation, profitability, and growth. This report details six key practices that vendors can implement to build truly partner-friendly XaaS offers.

Summary

The report focuses on the pivotal role of channel partners in boosting XaaS (technology-as-a-service) revenue for vendors in the high-tech industry. Despite channel partners generating 58.5% of overall vendor revenue, they account for only 25% of XaaS revenue. The report emphasizes the need for vendors to create partner-friendly XaaS offers that prioritize differentiation, profitability, and growth to close this revenue gap.

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Included in the full report

Challenge of Partner Revenue:

Channel partners currently generate significantly less XaaS revenue compared to overall vendor revenue, indicating a critical gap.

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Importance of Offer Design:

XaaS products must be specifically designed for partners to sell effectively, with only 44% of vendors currently meeting this necessity.

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Feedback Incorporation:

Gathering strategic partner feedback during the development process leads to a 39% increase in partner-sold XaaS revenue, emphasizing the need for collaboration.

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Flexibility and Customization:

Providing flexible XaaS offers that partners can customize boosts revenue growth and enhances partner success.

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Incentives for Service Creation:

Implementing service rewards helps motivate partners to develop new offerings, resulting in a reported 19% higher growth in XaaS revenue sold by partners.

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Publication date:

August 20, 2024

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