Are Channels Any Good at Selling SaaS and Cloud Services?
A Forrester Research and Avangate Study
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Housekeeping Rules
1. All lines are on mute
2. Use the Questions Box on the right
3. Questions will be answered towards the end of the webinar.
4. Unanswered questions and parking lot items will be followed up subsequently.
5. This presentation is being recorded for later playback and sharing.
6. Feedback forms will be provided at the end of session.
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Peter Sheldon Principal Analyst Forrester Research
Today’s Speakers
Raj Badarinath Sr. Director, Product Marketing Avangate
@peter_sheldon
@rajmatazz
© 2012 Forrester Research, Inc. Reproduction Prohibited 4
Today a third of SME’s buy on-premise software from direct market resellers (DMR’s)
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ISV’s expect channel partners to play a greater role in distributing their SaaS products
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Many customers still value the
VAR relationship
When it comes to SaaS, VAR’s and online are the fastest growing channels outside of direct
Many VAR’s still have their head
in the sand when it comes to
SaaS
But those that are interested in reselling SaaS find their vendor partners aren’t ready or willing to support them
© 2012 Forrester Research, Inc. Reproduction Prohibited 10
VAR’s feel locked out SaaS game
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66% of SaaS vendors believe their channel partner program is strategically important
But only 40% agree their channel
program is currently successful
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Vendors are acutely aware they are not doing enough to support the channel
Microsoft’s ‘open’ partner program for Office 365 allows partners to own the billing and customer relationship
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Adobe’s Value Incentive Plan for their Creative Cloud services is offered exclusively through channel partners
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Channel partners simply don’t
have the right tools to support
SaaS
Channel partners expect support and tools from their vendors to enable them to successfully resell SaaS
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Vendors plan to expand the commerce tools they currently provide to channel partners
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Key Takeaways
Channel partners are set to play an important role in
growing SaaS revenues for SMB customers
Channel partners want to sell your SaaS products, but
aren’t currently empowered to do so
Software vendors need to develop comprehensive
commerce tools for partner enablement
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Avangate Introduction
Avangate is the agile commerce-as-a-service provider trusted by over 2700 software companies to accelerate cloud commerce worldwide.
eCommerce Channel
Management
Affiliate Management
Merchant and Marketing Services
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Over 2,700 Software Customers. 4,000 Resellers. 37,000 Affiliates.
Avangate – Accelerating Cloud Commerce
Since 2006
Deep Focus On Software and Cloud Services
Consistent Growth Of 75% Per Year
Locally Headquartered In Redwood Shores, CA
Global Team Of 120+ Employees With Offices In North America, Europe, Asia
B2B B2C Both
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Software & Cloud Services Blueprint
Touchpoints Online, API-based, Account Mgmt, Branded, Rules-
based, Personalization / Localization
Distribution On-Board, Activate, Manage across Indirect
Channels
Channel / Partner
Affiliate Network
Market-places
Mobile Online / In-App Orders
Customer Portal / Self-Service
Commerce Engine Acquire, Scale, Retain, Expand leveraging Marketing Tools, Order Management, Fulfillment / Provisioning
and Revenue Assurance
Subscription Billing
Contact Center
Global Payments
Systems of Record Extend and Integrate across Customer, Product, Pricing, License / Subscriptions, Order, Financials
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Avangate Commerce Platform
Sky eCommerce Sky Channels
Sky Affiliates
Channel / Partner
Affiliate Network
Market-places
Mobile Online / In-App Orders
Customer Portal / Self-Service
Avangate Commerce Platform
Subscription Billing
Contact Center
Global Payments
Systems of Record Extend and Integrate across Customer, Product, Pricing, License / Subscriptions, Order, Financials
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Channel Maturity Channel-Enabled Relationship Management
Bas
ic
Partner on-boarding, lead mgmt, sales & marketing collab
Sales acquisition, visibility, ROI
Au
tom
ate
Partner Order & Revenue Mgmt
Partner portal, price / promotions, order capture, financials
Increase TTM, Margin, Visibility & control
Ch
ann
el-
Enab
led
Channel Sales & Service Mgmt
License thru Activation/ Entitlement
Assisted / Self-Service
Increase Usage, Retention, Margin
Maturity
Val
ue
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Benefits Partner Order and Revenue Management
1. Simplify Partner Engagement
2. Automate Revenues
3. Renew Via Channels
… in an Integrated Platform
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1. Simplify Partner Engagement
Fast Partner On-boarding Web-based Partner Portal, PRM integration, Partner Tiers, Credit limits, Margins for new v/s renewals
Visibility on key business metrics Dashboards, Unified Sales Reports, Measure Channel Efficiency and performance
Respond faster with fewer resources Alerts, Notification, Workflows, Centralized Partner Admin Console, Approvals, discounts
Make it Easy
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2. Revenue Automation
24X7 Ordering Support Partners around the world, Pricing Tiers, Bundles, Offers
Simplify Billing & Invoicing Support Bulk ordering, Subscriptions, T&C’s, Multiple Price lists for New and Renewals
Automate Payments & License Fulfillment Global Payment Methods/Payments, License/Key thru Activation/Amend
Automate both the Long Tail and the Fat Head
Ch
ann
el $
Channel Partners
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3. Renew Via Channels
Enable Channels and CSR’s … Partner Assisted Service for upsell, add-ons, renewals, CSR service “on-behalf of”
… and Your Customers to Renew MyAccount Self-Service with Partner Attribution
Automate Communication Partner Reminders, Channel Renewal Programs, Email / Marketing Tools
Drive Retention Monthly vs. Annual, Renewal / Upgrade Discounts, Tiered Pricing, Partner Margin Tiers
Focus on the Customer at Ordering and Service Moments of Truth To Increase Usage, Upgrades, and Retention
Stimulus Order Service
Channel Partners
Customer Service
Self Service
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Integrated Commerce Platform
One Platform for Operational Flexibility Advanced Commerce platform, Revenue Model, Multi-Channel; single product catalog
Integrate once, Extend to Channels PRM, CRM, Financials
Secure, PCI-Compliant Global Managed Platform, Localized Expertise / 24x7x365, Risk/ Fraud
Turnkey Solution
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The Avangate Difference
Cross-channel visibility and control
Channel management and automation
Customer lifecycle management through channel & affiliate networks
Partner Order and Revenue Management System Enables Vendors To Expand to New Markets and Touchpoints
“Channel Manager provides a global overview of channel sales and freed up significant internal resources allowing us to properly nurture partner relationships. Our distribution network doubled after the first year …”
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Questions?
Avangate B.V. Amsterdam, The Netherlands Tel: +31 20 890 8080
Avangate Inc. Redwood Shores CA., USA Tel: (650) 249 - 5280
[email protected] www.avangate.com
Thank You! To download the Forrester Reports or more information on Avangate and SkyCommerce, please visit www.avangate.com
Stay Tuned for the next Avangate Webinar:
“How to Navigate The Perfect Storm in Software Commerce” May 7th, 2013 Register at www.Avangate.com