Many technology vendors struggle to grow recurring revenue through channel partners. Perhaps the biggest contributing factor to this challenge is that partner management teams do not design XaaS offers in a way that enables partners to be successful.
To identify the root causes of this phenomenon, TSIA researched how product management teams consider the needs of the partner community when developing their XaaS offers and strategies.
TSIA Research found that product management teams routinely solicit input from their direct sales teams, customer success teams, and other services teams when designing new XaaS offers; however, only half of them consulted with their partner management colleagues to understand the needs of the company’s partner ecosystem.
This under-representation of the partner team in the requirements process is problematic and, if not adequately addressed, can result in the company missing out on an assumed business growth multiplier.
This paper makes the case for understanding the partners’ role in the XaaS model and its implications to a vendor’s business growth.