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2007 State of Partner Programs 
1 May, 2007 By Diane Krakora |

In an effort to dig down and get an even deeper understanding of the partner programs available in the market today, Amazon Consulting sent out a survey at the end of 2006 to 250 hardware and software vendors. We wanted to investigate what's happening, now, in the industry's partner programs; issues surrounding such key areas as program elements and partner information, as well as uncover any future-looking initiatives and objectives companies might be planning.
Target Audience. The survey targeted vice presidents and director-level individuals responsible for channel and alliance management, and asked 25 questions divided into three key focus areas:
Partner Information. First, we polled the vendors about general information on their partners, such as category types and value to the company. We asked about services trends, loyalty and turnover, as well as profitability and incentives.
Program Information. Next, the survey asked questions concerning the program, specifically about revenue and spending, resource investment and program structure.
2007 Program Objectives. In the third area, our questions covered overall objectives and key issues, priorities in spending, as well as challenges and opportunities for the coming year.
Survey Results. The results of the survey reveal a great deal - we are still swimming in data and have just started the process of producing a series of reports. The respondents were primarily based in the U.S. with a global business focus, with more software companies responding than hardware companies. Most have built relationships with a modest 500 or less number of partners in the US, and less than 5,000 worldwide. Many of the respondents are planning on expanding the numbers of partners and the program elements, as well as increasing the amount of revenue through the channel in 2007.
We are very happy to report that overall, the study shows a positive and upbeat view of the state of the high technology channel and the partnerships that exist between vendors today. Initially, there are three key takeaways from all of the data:
- Partners are highly relevant for high technology vendors today, both in terms of percentage of revenue and the actual dollar amounts they produce.
- Technology companies are investing significantly into their partners and are planning on continuing to increase their investment in partners.
- These organizations are focused on the partners and what they can do to help them grow-through partner readiness, making it easy to do business, and simplifying processes-rather than concentrating on more vendor-focused issues such as partner loyalty and cross selling.
It also seems 2007 is the year of partner program challenges. Four of the top five initiatives for 2007 involve sweeping changes to partner programs:
- Globalize partner program
- Program overhaul
- Change in partner strategies
- Integrate an acquired company.
We believe that this offers a good news/bad news scenario for the partner community.
Up Side. On the up side, there will be more investment in partners, programs and processes to increase the ease of doing business with vendors.
Down Side. On the flip side, these changes can cause a high level of uncertainty, confusion and education challenges. Just when the partner representatives and operations people have the vendor program figured out - what the margins are, what the order process is, how to register a deal, what tools and support are available - the vendors change it on them. Progress is good; too much progress derails momentum.
Diane Krakora is the president and CEO of Amazon Consulting, a consulting firm dedicated to the success of high technology companies in developing and leveraging partners for increased sales and profitability. For over eight years Amazon Consulting has been helping companies, most recently Symantec and Oracle, manage the process of integrating their partners and programs after a merger or an acquisition. For more information on their services, contact info@amazonconsulting.com or go to www.amazonconsulting.com.
To view and download a Webinar on this topic, please go to:
http://www.amazonconsulting.com/resources/orderform.php4?contentid=84
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