The Channel Trends Study 2021 What Should we Expect? - Rod Baptie - Baptie & Co - 360insights

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The Channel Trends Study 2021 What Should we Expect? - Rod Baptie - Baptie & Co - 360insights
The Channel Trends Study
2021 What Should we Expect?
        Rod Baptie – Baptie & Co
The Channel Trends Study 2021 What Should we Expect? - Rod Baptie - Baptie & Co - 360insights
Rod Baptie
                                 President
                             Baptie & Company

Rod has been involved with hi-tech since 1984. Formerly Managing Director
of WBN (a leading hi-tech agency), Rod's introduction to hi-tech was the
launch of dBase Ill and Framework in 1984. During the 1980’s, Rod was
responsible for the successful launch of over 20 major technology companies
into the European market.

In 1993 Rod launched Baptie & Co, which grew rapidly to become world’s
leading provider of best practice and how-to information for executives in the
technology and telecom industries. Baptie & company’s communities and
events provide invaluable insights on the latest trends, sales, marketing and
management issues through peer to peer interaction.

A popular speaker at conferences and seminars worldwide, Rod is recognized
as one of the leading thinkers in the IT/Telcom channels industry as well as
building, running and managing those B2B communities.
Which of the following best
 describes your position?
 VP Channels         27%

 Director Channels   34%

 Channel Manager     18%

 Other               21%
Which of the following best describe your
primary business type? (Check all that apply)
   Hardware vendor, manufacturer or developer               24%
   Software vendor, developer, ISV                          58%
   IaaS, PaaS, SaaS provider                                27%
   IoT Vendor                                               3%
   AI vendor                                                4%
   Peripherals vendor                                       3%
   Telecom or communications services vendor                8%
   Dedicated cloud business (service provider, solutions,   4%
   consulting, etc.)
   Distributor, value added distributor or retailer         1%
   Other                                                    8%
Approximately how many active Channel Partners
does your organization have in North America?
      Less than 100                       26%
      101 to 250                          19%
      251 to 500                          10%
      501 to 1,000                        12%
      1,001 to 5,000                      13%
      5,001 to 10,000                     11%
      10,001 to 20,000                     3%
      20,000+                              4%
Looking ahead over the next 12 months, what changes, if
any, do you anticipate with regards to your company’s
Channel partner programs offerings?
          63%
                        60%
   56%           55%

                                                                     31%
                                                                            27%            26%
                                                                                   21%
                                                  15%
                                     8%     7%               6%                                       5%         10%    7%
                                                                                                           4%
NET INCREASE IN NUMBER OF PARTNER NET DECREASE IN NUMBER OF PARTNER NO CHANGE IN NUMBER OF PROGRAMS        DON'T KNOW
       PROGRAMS WE OFFER                 PROGRAMS WE OFFER                      WE OFFER
                                                      2021    2018   2017   2013
As you forecast 2021 do you see sales through the
following Channels (Club 50)
                       ISVs

           Telecom Agents

            Master Agents

New Breed distis (Pax8 etc)

         Traditional Distis

             Marketplaces

   Large Account Resellers

                        SIs

                     MSPs

                      VARs
                              0   10         20      30       40       50      60   70   80   90

                                       Decrease   Increase   Remain the same
As you forecast 2021 do you see sales through the
following Channels
                       ISVs

           Telecom Agents

            Master Agents

New Breed distis (Pax8 etc)

         Traditional Distis

             Marketplaces

   Large Account Resellers

                        SIs

                     MSPs

                      VARs
                              0   10         20         30         40     50   60   70

                                  Decrease   Increase   Remain the same
Which of the following do you sell to directly?

   73%     74.0%              71.0%
                    65.0%

                                                                 24.0%
                                                                              18.0%
                                             15%       14.0%
                                                                                        11%    12.0%    11.0%      11.0%

BOTH END-CUSTOMERS AND CHANNEL PARTNERS   CHANNEL PARTNERS (OTHER THAN DISTRIBUTION)          END CUSTOMERS ONLY
        (OTHER THAN DISTRIBUTION)                           ONLY
                                              Looking to 2021   2018   2017      2013
In the next 12 months do you see your sales
through indirect Channels…?
  85%   84%
                76%   78%

                                                                                      21%
                                                                             15%                17%
                                                                     12%
                            3%         1%        3%          4%
         INCREASING                      DECREASING                        REMAINING THE SAME

                            Looking to 2021   2018    2017    2013
In the next 12 months do you want to

                       76%
              70%
    67%                          67%

                                                                                                       19%      21%
                                                  17%                                                                     18%
                                                                                   15%
                                                             11%       3%                     4%
INCREASE THE NUMBER OF CHANNEL PARTNERS YOU   REDUCE THE NUMBER OF CHANNEL PARTNERS YOU KEEP THE NUMBER OF CHANNEL PARTNERS YOU DEAL
                 DEAL WITH                                   DEAL WITH                                 WITH THE SAME
                                                  Looking to 2021   2018    2017    2013
Which best describes your Channel recruitment
strategy over the next 12 months?

            60%

   50%
                      42%

                                   27%      25%      27%

                                                                                          14%                               16%
                                                                       12%
                                                                                 8%                        9%       6%
 RECRUIT SELECTED PARTNERS TO   FOCUS ON YOUR CURRENT PARTNER       RECRUIT A SIGNIFICANT NUMBER OF   REDUCE OUR PARTNER BASE TO FOCUS
 ADDRESS KEY MARKET SECTORS       BASE TO HELP THEM SELL MORE              NET NEW PARTNERS           ON A SMALLER NUMBER OF OUR MOST
                                           EFFECTIVELY                                                       EFFECTIVE PARTNERS
                                                  Looking to 2021    2018    2017
In 2021 is the headcount of your Channel
team likely to?
45

40

35

30

25

20

15

10

5

0
     Remain the same   Slightly increase   Significantly increase   Slightly decrease   Significantly decrease
                                                Percentage
Do you think the amount you will spend in
co-op and MDF in 2021 will

 46% 48%                                                     46%
           43%
                                                                           39%
                 36%                                  37%
                                                                    31%

                                  15% 14%
                                                                                                12% 12%
                       9%                                                            9%
                            3%                                                            4%
      INCREASE              DECREASE                 REMAIN APPROXIMATELY THE SAME        DON'T KNOW
                                 Looking to 2021   2018   2017   2013
On average what percentage of your total sales do
you provide to your partners as co-op and MDF?
                                          28
                    26          25
                                               24
  22                     21
            19
                                                                                             19
                                     16
                                                             14                         14
       12                                           12 11
                                                                                                    8
                                                                                  7
                                                                      5      6
                                                                                                         1   1    0   3   1   3

0% - NO FUNDS ARE        0-1%             2%           3%                 4%             5% - 10%         10% - 20%    OVER 20%
     PROVIDED
                                                    Looking to 2021   2018       2013               Answers in percentages
Approximately what percentage of your potential
co-op and MDF funds remain unclaimed by your
partners?
 57

      44 45

              31

                            18                                        19
                                             16
                       13        12                                                      11
                                                  11     10 11              11
                                                                                                  9 8                          8 4 2
                   6                   8 7                        4               7 8                 4 8      4 1 2 6
0% - NO FUNDS GO    1% - 2%           3%-5% UNCLAIMED       6% - 10%           11% - 20%           21% - 30%    31% - 40%   40% OR MORE
   UNCLAIMED       UNCLAIMED                               UNCLAIMED          UNCLAIMED
                                                        Looking to 2021    2018   2017     2013                  Answers in percentages
What do you see as your partners biggest
challenges in 2021? (Check all that apply)
           An inability to pivot to social/digital marketing

    The challenge of remote working and servicing clients
                         remotely?

                   Being able to effectively sell remotely?

Maintaining client relationships in a remote environment?

                   A hold on Major new business projects

                   They or their clients are unable to pay

                                                                0           10   20   30   40   50   60

                                                               Percentage
In 2021 what do you think most closely represents
your organizations view of the Channel?
   Its value will be increasingly questioned by the 'C' suite?

It will come under increasing pressure from the direct sales
                    side of the business?

      It will come under increasing pressure to justify itself
                           financially?

    It will be seen as even more important to our success?

             It will remain the same as it has always been?

                                                                 0    10   20   30   40   50   60   70

                                                             Percentage
On a scale of 1-5, how do you rate your level of
satisfaction or dissatisfaction with the following partner
programs?

                             3.4            3.4                    3.3
    3.1                             3.2                                     3.2
                       3.0                          3.0
          3.0   2.9                                                                  2.9   2.8                            2.8
                                                                                                    2.7    2.7    2.6

      CO-OP/MDF PROGRAMS     DEAL REGISTRATION PROGRAM                   PARTNER PORTAL          P2P (PARTNER TO PARTNER PROGRAM)
                                          Looking to 2021   2018     2017         2013
Which elements of your Channel strategy is your
       organization looking to change or place more
       emphasis on in 2021? (Check all that apply)
            Increased incentives for new customer acquisitions?
        Financial support for partners in difficult market sectors?
                       A greater focus on customer satisfaction?
     Increased support for Partner sales and marketing training?
 Targetted Support for partners focused on key industry sectors?
                          A Focus on adding new Channel types?
A change in emphasis on the support offered to different channel…
      A re-evaluation of the types of marketing you will support?
                         A re-evaluation of your tiering strategy?
             A re-evaluation of your complete Channel strategy?
                                                                       0           10   20   30   40   50   60

                                                                      Percentage
There are a range of payment options associated
with vendor cloud offerings. Among the following,
which ones do you offer your Channel partners?
        74.0%
             67.0%
  61%
                    53.0%

                                                                                                          44.0%
                               41%        41.0%42.0%

                                     29.0%                                              31%
                                                                                                   24.0%                      22.0%
                                                                              16.0%           19.0%                                  16.0%
                                                           12% 10.0%
                                                                    9.0%                                            6% 7.0%
PAID IN PERPETUITY AS LONG AS PAID FOR A FIXED PERIOD OF PAID ON A REDUCING SCALE THE PAID A ONE-TIME FINDERS FEE   OTHER (PLEASE SPECIFY)
THE CUSTOMER REMAINS WITH                TIME               LONGER THE CUSTOMER
             US                                                REMAINS WITH US
                                                     Looking to 2021   2018    2017    2013
For Cloud sales what percentage do your
partners earn on average?
35%

                      31%
30%

25%
                                 23%
                        21.0%
                                   20.0%
20%
                                                       18.0%
                                             17.0%
                                                                                                   Looking to 2021
15%                                                  14%
           13.0%                                                                                   2018
                                           11%
10%                                                            9%
        8%
                                                                    7.0%

5%
                                                                           3%               3.0%
                                                                                1.0%
                                                                                       0%
0%
      Less than 10%   10 - 15%   15-20%    20-25%    25-30%    30-40%      40-50%      More than
                                                                                         50%
For your Cloud offerings, which of the following
billing options do you offer your partners?
                   72% 73%
                             61%

       45%
 42%
             36%                                     37.00%                               38%
                                                                                                28%

                                              16%                                                                      14%
                                   8.00%13%                               10% 13%                            4% 8%
   YOU BILL THE   YOU BILL THE PARTNER YOUR DISTRIBUTOR  YOUR DISTRIBUTOR   YOU HAVE A YOU HAVE A REFERRAL     OTHER
CUSTOMER AND PAY AND THE PARTNER BILLS THE CUSTOMER BILLS YOUR PARTNER WHOLESALE MODEL       MODEL
  THE PARTNER A    BILLS THE CUSTOMER    AND PAYS THE       (TRADITIONAL
COMMISSION (AGENT                         PARTNER A     DISTRIBUTION MODEL)
     MODEL)                              COMMISSION
                                                 looking to 2021   2018   2017
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