FOCUS. PEOPLE. COMPETENCY

bChannelsStructures of Channels

The Market Triangle – few big companies + lots of little companies

FOCUS. PEOPLE. COMPETENCY

Small/Medium (SME)

Large Business

Corporate

1 employee

500 employees

100 employees

Vendor

Rese

llers &

R

eta

il Push

Pull

Corp

ora

te

Rese

llers

Dem

and C

reat

ion

Optimum ITbusiness split*

* Source Gartner/IDC

Corporate, 20%

Large, 20% SME, 60%

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Distributors

Corporate500+

CorporateResellers

SME10-500

SOHO1-9

Consumer1

Local Resellers(2-Tier)

Catalog/ Mail Order

& eTail

RetailChains

End users by size of company (number of employees)

System’sIntegrators

Many Routes to MarketDifferent end-customers buy in different ways

Vendor

Sales OutSales Out

Sales In

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Vendor Distributor ResellerEnd

CustomerDistributorDistributor

Sales “in” Sales “out”

Stock

[No Stock]

“True” sales

Measuring SalesWhy ‘Sales Out’ is so important

Measuring sales to

distributors just measures

how much you are filling

their warehouse

Measuring ‘sales out’ is a

very good indication of

real customer purchases

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Program TiersWhat’s the best mix of partners?

5% Partners50% Revenue

15% Partners30% Revenue

30% Partners15% Revenue

50% Partners5% Revenue

20% Partners80% Revenue

45% Partners45% Revenue

80% Partners20% Revenue

The Terrible Tiers or how many vendors think about their channel

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Unmanaged

”

Remote Touch

Managed

You buy a lot.So you must be pushing our products.

We’re not clear about that.We’ll spend a lot of time with you anyway.

Sorry, no humans available.You must interact with us through our

website.

We have no idea who you are.You must not be important.

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The ‘sweet spot’Which bChannels can find and help you exploit

Value ($/€/£)

Reseller SizeBiggest Smallest

Top100

Top500

ManagedAccounts

High valueunmanagedAccounts

Low valueAccounts

Biggest Growth opportunity

Difficult to significantly grow existing managed accounts

Growing low-value accounts yields low revenues

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Partner programs have to be balancedIt’s not all about what the vendor wants

The partner program must balance measurable requirements with measurable benefits.

Reward

The Partner Program must provide a return on investment for both the partner and the vendor.

Financial

Access

Recognition

Invest

Sales

Skills

Service

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Core Partner Program Methodology

Deliverprogrambenefits

Analyse, classify

and targetpartners

Measure+

Reward

Build effective

partner valuepropositions

Delivercommunicationto the channel

Communicate+

Engage Createawarenessand leads

Channel Partners

Identify+

Manage

Establishprogram

requirements

!

FOCUS. PEOPLE. COMPETENCY