Changing Channels

The term "ecosystem" has become increasingly prevalent in recent years, steadily replacing "channels" to denote indirect sales processes. By definition, ecosystems is the collaboration between two or more companies to address a customer's needs. Nevertheless, there is a trend where the term "ecosystems" is also applied to describe channel populations and communities, leading to some confusion. This conflation of terms can set unrealistic expectations about what ecosystems are and what outcomes they can achieve.   In this episode of "Changing Channels," Channelnomics's Larry Walsh and Bryn Nettesheim address the nuances of the ecosystem definition and seek to clarify the current trend's implications. They explore the distinct characteristics of ecosystems and how these collaborative networks can be leveraged effectively in the technology sector. This discussion aims to demystify the concept and ensure a common understanding within the industry.   Follow us, Like us, and Subscribe! Channelnomics: https://channelnomics.com/ LinkedIn: https://bit.ly/2NC6Vli Twitter: https://twitter.com/Channelnomics   About Larry Walsh: LinkedIn: https://www.linkedin.com/in/lmwalsh2112/ Twitter: https://twitter.com/lmwalsh_CN Official Bio: https://channelnomics.com/team/larry-walsh/   About Bryn Nettesheim LinkedIn: https://www.linkedin.com/in/brynnettesheim/ Official Bio: https://channelnomics.com/staff/bryn-nettesheim/   Changing Channels is a production of Channelnomics, a brand of 2112 Enterprises LLC Follow @Channelnomics to stay current on the latest #research, #bestpractices, and #resources. At @Channelnomics — the voice of thought leadership — we define #channel trends, chart new #GTM strategies, and #partner with industry leaders to champion #diversity in the channel.  © 2112 Enterprises LLC

In the latest episode of the podcast “Changing Channels,” host Larry Walsh spoke with Trevor Vickery, the vice president and general manager of Intel's global partners and support organization, about the concept of the "Siliconomy" – or the Silicon Economy – and how semiconductors are driving a new wave of innovation and opportunity. The Siliconomy, a term coined by Intel, refers to the ubiquity of semiconductors in our digitally connected world. As Vickery explained, the need for compute power is growing exponentially, with the market expected to reach a trillion dollars in the next few years. This growth is driven by the increasing demand for connected devices and the need to modernize cities to accommodate the growing urban population. Intel sees its role in the Siliconomy as not only a supplier of technology but also as a key player in diversifying the semiconductor supply chain. The company is investing in expanding its manufacturing capacity in the U.S., Asia-Pacific, and Europe to ensure a more resilient and diverse supply chain. The conversation also touched on the importance of partnerships in the Silicon Economy. Vickery emphasized that no one company can go at it alone and that partnerships are critical to building solutions that meet the needs of customers. He highlighted Intel's Partner Alliance program as a mechanism for scaling these partnerships and bringing together ISVs, GSIs, and other partners to co-engineer solutions. When asked about the potential for new types of partners to emerge in the Siliconomy, Vickery acknowledged that Intel may need to get closer to the end consumers of technology to understand their unique use cases and workloads. However, he also stressed the importance of scale and the need for open standards to ensure that solutions can be easily deployed and run anywhere. Looking ahead, Vickery outlined Intel’s agenda for facilitating the vision of the Siliconomy. He emphasized the need to work more closely with partners to develop the ecosystem, co-engineer solutions, and innovate on both the technology and business model side. As the world becomes increasingly digitally connected, the Siliconomy is poised to drive significant growth and opportunity. With partnerships and innovation at the forefront, companies like Intel are working to ensure that the infrastructure and solutions are in place to support this growth and drive the next wave of technological advancement.

The tech industry is the generator of great wealth and a contributor to economic growth. The industry has provided trillions of dollars in opportunities to entrepreneurs and investors around the world, and it has offered a pathway to a better life for millions. The last two years haven’t been kind to the tech industry. Many companies and their partners are struggling against strong economic headwinds resulting from the post-COVID recovery and geopolitical instability. While tech companies continue to generate profits, their operating costs are going up. The biggest impediments to performance and growth: Inflation, interest rates, automation, and general uncertainty. In 2023, the tech industry laid off more than 260,000 jobs, with many job losses going uncounted. The downsizing rate more than doubled compared to 2022, and the trend is continuing into 2024. We’re at the beginning of the year, and tech companies across the industry are already planning more job cuts in their pursuit of “optimization” and “efficiency.” Some of the downsizing is justified to control costs and maintain profitability. However, the departments often first in line for cuts – marketing, operations, administration – tend to have the highest numbers of women and people of color, leading to these layoffs disproportionately affecting minorities. This is ironic since the tech industry has been a champion of diversity, equity, and inclusion (DEI) programs. In this episode of Changing Channels, host Larry Walsh is joined by David Lee, a software engineer turned corporate transformation advisor and DEI advocate, to discuss the layoff trend. Lee, who is also the author of “The Only One in the Room: The Unwritten Rules of Being Black in Tech,” shares his insights on the reasons behind the layoff trend and its impact on the tech industry's progress towards achieving its diversity objectives. Follow us, Like us, and Subscribe! Channelnomics: https://channelnomics.com/ LinkedIn: https://bit.ly/2NC6Vli Twitter: https://twitter.com/Channelnomics About Larry Walsh:  • LinkedIn: https://www.linkedin.com/in/lmwalsh2112/ • Twitter: https://twitter.com/lmwalsh_CN • Official Bio: https://channelnomics.com/team/larry-walsh/ About David Lee • Official Website: https://www.iamdavidlee.com/ • LinkedIn: https://www.linkedin.com/in/identityjedi/ • Book on Amazon: http://tinyurl.com/yzhpx2tp Changing Channels is a production of Channelnomics, a brand of 2112 Enterprises LLC Follow @Channelnomics to stay current on the latest #research, #bestpractices, and #resources. At @Channelnomics — the voice of thought leadership — we define #channel trends, chart new #GTM strategies, and #partner with industry leaders to champion #diversity in the channel.  © 2112 Enterprises LLC

Paul Hunter, managing director of North America at HPE, joins Changing Channel’s Larry Walsh to discuss the traditional data center hardware company’s transition to the Everything-as-a-Service model and what it meant to its channel program. In recent years, vendors across the tech industry have wholeheartedly embraced the Everything-as-a-Service (XaaS) model. This revolutionary approach involves selling technology in various forms through subscription and consumption-based models, which offer numerous benefits. The appeal of this model is undeniable: It generates recurring and predictable revenue while eliminating the uncertainties of sales cycles. While companies that were born in the cloud or have a service-based foundation find it relatively straightforward to adopt the XaaS model, traditional hardware vendors and some software publishers face significant challenges. These companies have long-established transactional sales practices deeply ingrained among partners and customers. Convincing sellers to shift their product positioning to a service-oriented approach and embrace new compensation plans is no easy task. Likewise, getting partners to adopt product sales that require presenting different value propositions and costs can be equally challenging. However, the lure of capturing recurring revenue is simply irresistible. As a result, many hardware vendors are undertaking the transition to XaaS sales models and channel programs, albeit at a slower pace than anticipated due to change management complexities. Hewlett Packard Enterprise (HPE) stands out as a prime example of a company that has strategically embraced the service-based model. HPE introduced its cloud-based GreenLake platform in 2017 and set a primary objective of generating the majority of its revenue through service and hybrid infrastructure sales. Over the past five years, HPE has continuously restructured its internal organization and external channel programs to align with the XaaS model. Its efforts are paying off, as the company is well on its way to achieving its revenue goals through service sales in the near future. HPE's accelerating transition to XaaS couldn't come at a better time. According to IDC, a considerable 71% of enterprises are shifting their workloads from public clouds to hybrid and on-premises infrastructure. This move is driven by the desire for enhanced administrative capabilities and cost control. Simultaneously, partners are identifying increasing opportunities to provide managed and professional services alongside XaaS and hybrid engagements. HPE recognizes these trends as significant drivers of growth. In this edition of Changing Channels, we bring you an insightful discussion between Paul Hunter, the managing director of North America for HPE, and Channelnomics Larry Walsh. They delve into the vast opportunities presented to vendors and partners by the XaaS model, highlighting the successes and setbacks that HPE has experienced during the transition process. Moreover, they provide invaluable insights into how businesses can capitalize on the flourishing XaaS and hybrid infrastructure markets.   Follow us, Like us, and Subscribe! Channelnomics: https://channelnomics.com/ LinkedIn: https://bit.ly/2NC6Vli Twitter: https://twitter.com/Channelnomics   Changing Channels: A Channelnomics Production Follow @Channelnomics to stay current on the latest #research, #bestpractices, and #resources. At @Channelnomics — the voice of thought leadership — we define #channel trends, chart new #GTM strategies, and #partner with industry leaders to champion #diversity in the channel.    Episode Resources Host Larry Walsh: https://bit.ly/3beZfOa Guest Paul Hunter: https://tinyurl.com/2utcv8pu   Channelnomics Podcasts Changing Channels: https://tinyurl.com/4xfvevbn The Network Effect: https://tinyurl.com/bdzzkwtb In the Margins: https://tinyurl.com/2sun9z5s   © 2112 Enterprises LLC

Eric Hembree, director of Internet of Things at Ingram Micro, joins Changing Channel’s Larry Walsh to discuss the state of Extended Reality and IoT in the channel.  The reputation of Extended Reality (XR) technology is taking a hit as some consumer vendors are pulling back on their market development ambitions. But in the commercial segment, XR is just getting warmed up.  Ingram Micro, one of the world’s largest technology distributors, partnered with Channelnomics to study the state of XR — an umbrella term that includes augmented and virtual reality — in the channel. The research found that, while only a minority of partners are selling and supporting these products, their business is robust and growing.  The same is true of IoT, which represents a $2 trillion opportunity and has been promised as the next wave of technology innovation and growth for the past decade. Despite all of its promises, IoT remains a relatively small presence in the channel compared to more conventional technologies. Yet research developed by Channelnomics and Ingram Micro found that resellers and integrators focusing on IoT are doing well and growing rapidly.  In this special podcast, Eric Hembree, director of IoT at Ingram Micro, joins Changing Channel’s Larry Walsh to review the research conducted by Ingram Micro and Channelnomics, identify the current and emerging opportunities in XR and IoT, and discuss what it takes for vendors and resellers to leverage the channel to get these technologies to market.  Follow us, Like us, and Subscribe! Channelnomics: https://channelnomics.com/ LinkedIn: https://bit.ly/2NC6Vli Twitter: https://twitter.com/Channelnomics Changing Channels: A Channelnomics Production Follow @Channelnomics to stay current on the latest #research, #bestpractices, and #resources. At @Channelnomics — the voice of thought leadership — we define #channel trends, chart new #GTM strategies, and #partner with industry leaders to champion #diversity in the channel.  Episode Resources Host Larry Walsh: https://bit.ly/3beZfOa Guest Eric Hembree: https://tinyurl.com/26w9rwbu Download Reports: https://tinyurl.com/4thvfuv4 Channelnomics Podcasts Changing Channels: https://tinyurl.com/4xfvevbn The Network Effect: https://tinyurl.com/bdzzkwtb In the Margins: https://tinyurl.com/2sun9z5s © 2112 Enterprises LLC

Economic uncertainty remains high, even as the general indicators start to point away from a recession disrupting the market in 2023. Channelnomics is adding to this more optimistic outlook with the recently released annual Channel Forecast report, which found that technology vendors believe indirect sales will increase this year.  The prospect of a good sales and revenue year is somewhat surprising amid the continuing string of technology company layoffs and mixed sales results by product category. The technology market is in flux and adjusting to the contemporary realities of the post-pandemic world. As supply chains ease and companies return to “normal” operating postures, their technology needs change accordingly.  In this special edition of Changing Channels, host Larry Walsh is joined by his Channelnomics colleagues Chris Gonsalves, chief research officer, and TC Doyle, vice president of strategic content, to discuss the channel performance trends and expectations that channel professionals can expect in 2023.  Reference Materials 2023 Channelnomics Channel Forecast: https://tinyurl.com/yn9m2wr8 Channelnomics Recession Survival Guide: https://tinyurl.com/5n6928pn Follow us, Like us, and Subscribe! Channelnomics: https://channelnomics.com/ LinkedIn: https://bit.ly/2NC6Vli Twitter: https://twitter.com/Channelnomics Changing Channels Is a Channelnomics production Follow @Channelnomics to stay current on the latest #research, #bestpractices, and #resources. At @Channelnomics — the voice of thought leadership — we define #channel trends, chart new #GTM strategies, and #partner with industry leaders to champion #diversity in the channel.  Our Guests Larry Walsh: https://bit.ly/3beZfOa Chris Gonsalves: https://tinyurl.com/23s4m4m4 TC Doyle: https://tinyurl.com/2kt6ajyf Channelnomics Podcasts: Changing Channels: https://tinyurl.com/4xfvevbn The Network Effect: https://tinyurl.com/bdzzkwtb In the Margins: https://tinyurl.com/2sun9z5s © 2112 Enterprises LLC

David Rogers, senior vice president of alliances and global channel sales at Netskope, talks to Larry Walsh about the security risks of the expanding world of ecosystems. “Ecosystems” is a buzzword that everyone is talking about these days. In these collaborative networks of technology and value providers, vendors, distributors, resellers, service providers, and integrators work together to combine various applications and resources, resulting in a value that’s greater than the sum of their parts. These ecosystems aren’t limited to the technology industry or the IT channel. Every industry is adopting ecosystems to maximize their products’ potential and enhance their value propositions to customers. The trend toward ecosystems is estimated to transform the economy, creating trillions of dollars in opportunities and outputs. While enhancing value through ecosystems is a great idea, it also poses a problem — security. When an application connects with another, particularly one produced by a different company, it creates a potential security vulnerability. APIs and SDKs are often the root cause of many potential exploits that lead to data breaches and compromises. Although the security of ecosystems is in its early stages, it’s growing in importance. As more businesses adopt ecosystems as a means of building systems and consuming technology, they also will take on the risk of security vulnerabilities that come with integrated resources. Netskope, a provider of security risk management solutions, is tackling the challenge of ecosystem security with new tools that enable vendors, partners, and customers to ensure security from the outset of use and monitor systems for vulnerabilities. David Rogers, senior vice president of alliances and global channel sales at Netskope, will join Changing Channels host Larry Walsh to discuss the ecosystem trend, the associated security issues, and the steps that vendors can take to ensure the integrity of their value networks.   Follow us, Like us, and Subscribe! Channelnomics: https://channelnomics.com/ LinkedIn: https://bit.ly/2NC6Vli Twitter: https://twitter.com/Channelnomics Changing Channels Is a Channelnomics production Follow @Channelnomics to stay current on the latest #research, #bestpractices, and #resources. At @Channelnomics — the voice of thought leadership — we define #channel trends, chart new #GTM strategies, and #partner with industry leaders to champion #diversity in the channel.  Episode Resources Host Larry Walsh: https://bit.ly/3beZfOa Guest David Rogers: https://tinyurl.com/cvdpcwa8   Channelnomics Podcasts: Changing Channels: https://tinyurl.com/4xfvevbn The Network Effect: https://tinyurl.com/bdzzkwtb In the Margins: https://tinyurl.com/2sun9z5s   © 2112 Enterprises LLC

Ross Brown, senior vice president of North America Cloud Ecosystem Partners at Oracle, talks to Larry Walsh about what it means to make money in cloud computing. The cloud is now mainstream. Vendors and partners make more money on cloud and other automated services sold through subscriptions than they do through traditional hardware and software products. A large part of cloud computing’s appeal is the recurring revenue — steady, predictable income with a consistent expense correlation. Unlike fluctuating, seasonal sales cycles, recurring revenue brings certainty.  Recurring revenue sounds simple in explaining the cloud computing model, but accounting for cloud revenue is much different and more difficult. Cloud computing is sold on extended contracts with pricing consideration based on consumption expectations over the lifetime of the engagement. Bookings don’t equal revenue. Revenue isn’t immediately recognized. There are revenue and costs associated with interconnected services. And customers can use “credits” to retire their purchasing commitments, but vendors must pay partners for those sales.  Pricing and accounting in cloud computing are complicated and confusing. Planning for growth, calculating profitability, measuring performance, and defining value to partners and customers are all a matter of how a vendor interprets GAAP (generally accepted accounting principles) and calculates cloud numbers.  Given the pervasiveness of cloud computing in the channel, Changing Channels asked a true expert in cloud services and business models — as well as the channel — to talk about cloud pricing, revenue recognition, and accounting practices. Ross Brown, senior vice president of North America Cloud Ecosystem Partners at Oracle, has one of the most in-depth understandings of cloud economics relative to vendor sales and partner engagement models. The insights Brown shares provide a next-level reveal of what it means to make money in cloud computing.  Follow us, Like us, and Subscribe! Channelnomics: https://channelnomics.com/ LinkedIn: https://bit.ly/2NC6Vli Twitter: https://twitter.com/Channelnomics Changing Channels Is a Channelnomics production Follow @Channelnomics to stay current on the latest #research, #bestpractices, and #resources. At @Channelnomics — the voice of thought leadership — we define #channel trends, chart new #GTM strategies, and #partner with industry leaders to champion #diversity in the channel.  Episode Resources Host Larry Walsh: https://bit.ly/3beZfOa Guest Ross Brown: https://tinyurl.com/4r5ej67s In the Margins: https://tinyurl.com/2sun9z5s © 2112 Enterprises LLC

Karl Soderlund, senior vice president of North America ecosystems at Palo Alto Networks, joins Larry Walsh to talk about what it takes for channel leadership and teams to continuously challenge themselves to look for improvements and better ways of doing things. Technology is a driving force behind the transformation of the way businesses operate. One important aspect of this transformation is the channel, which vendors use to get their products to market through partners. Staying ahead of the competition and meeting customers’ evolving expectations require channel managers and teams to constantly seek ways to improve their strategies and operations. Getting teams to pursue continuous improvement isn’t always easy. Some channel teams may become complacent, content with mediocre performance as long as it meets their basic needs. Others may adopt “best practices” and conform to standard structures and performance levels rather than trying new approaches. Some channel teams may avoid change due to perceived obstacles or cultural resistance to new ideas. Implementing change is always a challenge. Questioning the status quo is even harder. It takes vision, planning, analytical skills, talented individuals, valuable insights, strong leadership, and, above all, courage. Companies that are willing to commit to continuous improvement, even when they’re already achieving notable success, tend to stay ahead of the competition and are better equipped to weather market shifts. One such company that has consistently demonstrated a commitment to challenging the status quo, identifying and solving problems, and innovating its channel programs is Palo Alto Networks. With one of the most effective and well-structured channel programs in the industry, the vendor may seem to have little room for improvement, yet its channel leadership and management team are always seeking ways to enhance their programs, processes, and partner relationships. Karl Soderlund, senior vice president of North America ecosystems at Palo Alto Networks, is an instrumental figure in the company’s culture of continuous improvement and challenging the status quo. In this episode of Changing Channels, Soderlund discusses with host Larry Walsh the importance of not settling for mediocrity and not being afraid of change when it comes to channel strategies and programs.   Follow us, Like us, and Subscribe! Channelnomics: https://channelnomics.com/ LinkedIn: https://bit.ly/2NC6Vli Twitter: https://twitter.com/Channelnomics   Changing Channels Is a Channelnomics production Follow @Channelnomics to stay current on the latest #research, #bestpractices, and #resources. At @Channelnomics — the voice of thought leadership — we define #channel trends, chart new #GTM strategies, and #partner with industry leaders to champion #diversity in the channel.    Episode Resources Host Larry Walsh: https://bit.ly/3beZfOa Guest Karl Soderlund: https://tinyurl.com/3kv5brbd In the Margins: https://tinyurl.com/2sun9z5s   © 2112 Enterprises LLC

Changing Channels welcomed dozens of seasoned and insightful channel leaders from around the world and across the industry to share their experiences in developing modern routes to market. As we transition to the new year, Channelnomics is revisiting some of the best moments of Changing Channels over the last 12 months. We’re looking back at the deep thoughts and experiences shared by numerous industry executives, including: Rob Rae, Datto Cheryl Cook, Dell Technologies Louise McEvoy, Trend Micro Ted Schumann, Planet One (now Avant) Michelle Hodges, Ivanta (formerly of GitLab) John Dusett, Ingram Micro Cloud Lou Serlenga, Nile Dan Tomaszewski, Kaseya In addition, we recall some of the most salient soundbites of our top five guests of the year. Justin Crotty of NetEnrich on the importance of demonstrating value in managed services Kim King of Hitachi Vantara on building consensus in developing new systems Todd Palmer of Tanium on the fallacy of finding the right partners Eric Buck of Google on the value of distribution in bringing cloud services to market Patrick Pulvermuller of Acronis on the impact of the Russo-Ukraine War Check out the great Changing Channel highlights of the year or see the full episodes on the Channelnomics YouTube channel. Follow us, Like us, and Subscribe! Channelnomics: https://channelnomics.com/ LinkedIn: https://bit.ly/2NC6Vli Twitter: https://twitter.com/Channelnomics   Changing Channels Is a Channelnomics Production Follow @Channelnomics to stay current on the latest #research, #bestpractices, and #resources. At @Channelnomics — the voice of thought leadership — we define #channel trends, chart new #GTM strategies, and #partner with industry leaders to champion #diversity in the channel.    Episode Resources Host Larry Walsh: https://bit.ly/3beZfOa In the Margins: https://tinyurl.com/2sun9z5s   © 2112 Enterprises LLC

Cheryl Cook, senior vice president of global channel marketing at Dell Technologies, joins Larry Walsh to talk about the state of channel marketing, how marketing to and through the channel is evolving, and how to craft market-leading channel marketing programs. Successful channels require a combination of good products with demonstrable value propositions, training and enablement to transfer skills required to sell and support the offerings, and marketing resources and support to drive the demand that leads to revenue and profitability. Every vendor has channel marketing resources and functions that support partners’ go-to-market activities and keep partners engaged and informed about a vendor’s value propositions, programs and activities, and opportunities in the market. The effectiveness of channel marketing varies by vendor. Some vendors do a relatively good job of channel marketing, while others are merely scratching the surface. And all vendors are challenged to keep up with the latest techniques and tools for communicating their messages to and through partners. Productive and effective channel marketing requires a combination of well-defined objectives, clear messages, systems and tools for conveying messages, and resources and support for guiding partners’ marketing efforts. The challenge is persistent as channel marketing must continuously evolve with changing market conditions. In conversations with partners worldwide, one company keeps coming up as a good example of a vendor doing channel marketing right: Dell Technologies. For this episode of Changing Channels, we went right to the source to find out what makes Dell’s approach different from others. Cheryl Cook, senior vice president of global channel marketing at Dell, joins Changing Channels to talk about the current and evolving state of channel marketing and how to put together an effective channel marketing program. Follow us, Like us, and Subscribe! Channelnomics: https://channelnomics.com/ LinkedIn: https://bit.ly/2NC6Vli Twitter: https://twitter.com/Channelnomics   Changing Channels Is a Channelnomics Production Follow @Channelnomics to stay current on the latest #research, #bestpractices, and #resources. At @Channelnomics — the voice of thought leadership — we define #channel trends, chart new #GTM strategies, and #partner with industry leaders to champion #diversity in the channel.    Episode Resources Host Larry Walsh: https://bit.ly/3beZfOa Guest Cheryl Cool: https://www.linkedin.com/in/cherylscook/ In the Margins: https://tinyurl.com/2sun9z5s   © 2112 Enterprises LLC

Dan Tomaszewski, executive vice president of channels at Kaseya, joins Larry Walsh to talk about what it takes to enable managed service providers for success and how to get partners to put skin in the game on joint efforts that result in growth.   Managed services providers (MSPs) are the most sought-after partners in the channel. Built on recurring revenue models and service delivery, MSPs have the attributes that vendors adopting and developing subscription-based sales models seek in their go-to-market channels. The conventional wisdom: MSPs get what vendors want and need, so partnerships should be simple, fast, and productive.    MSPs know the service and recurring revenue model, but generating a return on investment for vendors isn’t automatic. MSPs vary in their capabilities, capacities, and productivity. They require support in training, business development, technology adoption, and sales.     Many vendors that support or sell through MSPs offer training and other development resources. Most MSP partner programs follow traditional approaches in this regard, offering these enablement resources for free or having partners earn them based on performance. The result is a mixed bag.    Kaseya approaches MSP development differently in that it offers paid engagement. MSPs buy into a program that gets them access to resources and support — often through veteran MSP practitioners — to aid technology adoption, service development, marketing activities, and sales. The result is telling; MSPs that participate typically show better and more consistent growth.   Dan Tomaszewski, executive vice president of channels at Kaseya, joins Changning Channels to discuss Kaseya’s MSP enablement approach and why getting partners to put skin in the game is a good way to drive better results in managed services.  

Eric Buck, director of commercial partners and global distribution at Google Cloud, joins Larry Walsh to talk about the role two-tier distribution models and distributors play in aiding cloud service providers in engaging channels and supporting partners.   Technology is increasingly being delivered via the cloud and sold through subscription payment models. End customers — from SMBs to enterprises — appreciate the ability to acquire and utilize computing resources hosted in public cloud infrastructure and available from virtually anywhere.   The digitalization of computing infrastructure and resources has many channel pros questioning the necessity of selling cloud services through traditional two-tier distribution models. Without physical products that require warehousing and logistics support for fulfillment, cloud services seemingly negate the need for working with distributors to reach the channel and end customers.   Yet cloud service providers and cloud-based technology companies have discovered that bypassing distribution isn’t necessarily the wisest choice. Distribution continues to play a vital role in helping vendors reach and influence partners, provide access to sales and technical support services, and enable transactions. From the perspective of partners, distribution is an aggregation point for different cloud resources, and distributors provide direction on what services to sell and how to make them work together.   Changing Channels asked Eric Buck, the director of commercial partners and global distribution at Google Cloud, to explain why even the hyperscale cloud service providers such as Google are working with distributors, the value and support they receive from distribution, and how vendors can measure the efficacy and return on investment they get by engaging a two-tier model.   Follow us, Like us, and Subscribe!  Channelnomics: https://channelnomics.com/   LinkedIn: https://bit.ly/2NC6Vli   Twitter: https://twitter.com/Channelnomics      Changing Channels Is a Channelnomics Production  Follow @Channelnomics to stay current on the latest #research, #bestpractices, and #resources. At @Channelnomics — the voice of thought leadership — we define #channel trends, chart new #GTM strategies, and #partner with industry leaders to champion #diversity in the channel.       Episode Resources  Host Larry Walsh: https://bit.ly/3beZfOa  Guest Eric Buck: https://www.linkedin.com/in/eric-buck-6213211/  In the Margins: https://tinyurl.com/2sun9z5s 

Todd Palmer, senior vice president of global partner sales at Tanium, joins Larry Walsh to talk about the mythical “right partners” that vendors always seek to sell their products and why it’s important to set the right expectations when developing go-to-market partnerships.  Vendors often say that they want to work with the right partners — resellers and solution providers with the ability and willingness to sell their products, support their customers, and, most of all, book consistent sales and beat revenue expectations.   “The right partners” are the white whales of the channel — a bit of a myth, if not misnamed. A partner’s appropriateness for a vendor’s go-to-market needs and program depends on alignment of the right product, vendor brand and product marketability, and sales economics, and on the partner’s alignment in capabilities, capacity, and willingness to invest resources.   That’s a pretty tall order, which is probably why the average vendor generates about 95% of its indirect revenue through less than 5% of its partners. And that’s also probably the reason why so many channel people say they want “the right” partners. In the survey for our 2022 Channel Chief Outlook, 83% of channel professionals said they’re challenged in getting partners to meet their sales goals and revenue expectations.  It’s an endless pursuit to identify, recruit, enable, and engage partners that will self-actualize in the market, hunt for net-new opportunities, and build books of business that accelerate revenue growth.  Channel veteran Todd Palmer, senior vice president of global partner sales at security vendor Tanium, joins Changing Channels to discuss ongoing efforts to find the right partners, how it’s often an unrealistic pursuit, and how vendors should approach the issue of finding qualified and capable go-to-market partners.   Follow us, Like us, and Subscribe!  Channelnomics: https://channelnomics.com/   LinkedIn: https://bit.ly/2NC6Vli   Twitter: https://twitter.com/Channelnomics      Changing Channels Is a Channelnomics Production  Follow @Channelnomics to stay current on the latest #research, #bestpractices, and #resources. At @Channelnomics — the voice of thought leadership — we define #channel trends, chart new #GTM strategies, and #partner with industry leaders to champion #diversity in the channel.       Episode Resources  Host Larry Walsh: https://bit.ly/3beZfOa  Guest Todd Palmer: https://www.linkedin.com/in/todd-palmer-310807/  More videos by Larry Walsh: https://tinyurl.com/mr25a4cy 

Lou Serlenga, chief revenue officer at Nile, joins Larry Walsh to talk about the launch of a new Network-as-a-Service company that’s leveraging channel partnerships to take on the incumbents in the staid, commoditized networking segment. New technology companies spring onto the IT landscape all the time, but few launch into a well-established and commoditized segment that’s dominated by a giant such as Cisco Systems. Yet that’s what the folks at Nile are doing. Under the leadership of chairman John Chambers, former CEO of Cisco, and Pankaj Patel, former executive vice president and chief development officer at Cisco, Nile is looking to disrupt the networking segment with a pure as-a-service model that allows customers to pay only for the networking services they consume. It’s not a new idea, but the Nile approach is much grander in scope and ambition than what others — including the established networking companies — have tried. Working entirely through channel partners, Nile launched with more than 50 resellers and integrators in its Nile Connect channel program, which is as unique as its product and business model. There are no tiers or certifications, just an ease of access that allows partners to build recurring revenue on Nile’s services. The job of building and expanding Nile Connect belongs to Lou Serlenga, the company’s chief revenue officer and a Cisco veteran. Serlenga is looking to develop a broad and vibrant channel program to disrupt his former company’s long-held leadership position in the networking market by giving partners and customers an alternative to buying boxes. Serlenga joins Changing Channels to discuss the launch of Nile and its ambitious channel program.   Follow us, Like us, and Subscribe! Channelnomics: https://channelnomics.com/  LinkedIn: https://bit.ly/2NC6Vli  Twitter: https://twitter.com/Channelnomics    Changing Channels Is a Channelnomics Production Follow @Channelnomics to stay current on the latest #research, #bestpractices, and #resources. At @Channelnomics — the voice of thought leadership — we define #channel trends, chart new #GTM strategies, and #partner with industry leaders to champion #diversity in the channel.     Episode Resources Host Larry Walsh: https://bit.ly/3beZfOa Guest Lou Serlenga: https://www.linkedin.com/in/louserlenga/ Larry Walsh on interest rates impacting the channel: https://youtu.be/Ta5QDNTANlg More videos by Larry Walsh: https://tinyurl.com/mr25a4cy

T.C. Doyle, vice president of strategic content at Channelnomics, joins Changing Channels host Larry Walsh to discuss the challenges all vendors face in transitioning from transactional to recurring revenue models. Services sold through subscription or recurring contracts are fast becoming the dominant go-to-market model for all vendors. While cloud service providers are built on the recurring-revenue model, even hardware and component vendors are pivoting toward the predictable revenue model. Recurring revenue is attractive, but it’s not easy to generate when a vendor has a legacy of transactional sales. Recurring revenue is — or should be — a replacement for transactional sales. In theory, transactional revenue should go down while recurring revenue increases, over time creating an “X” pattern on a graph. The challenge is that many vendors try to maintain, if not grow, their transactional sales while building a book of business on recurring revenue. This creates conflict as partners and customers are caught between making choices that often stymie the transition process. This is what Channelnomics calls the X-Chasm. Navigating the X-Chasm requires understanding the nature of the revenue transition process and how it influences partners and customers, making choices in channel strategy, and adjusting priorities for internal stakeholders responsible for managing legacy and future business units. In this episode of Changing Channels, industry veteran T.C. Doyle talks about his cover story in the premier issue of Channelnomics Quarterly that details the X-Chasm phenomenon and how channel chiefs can navigate the trap successfully. Follow us, Like us, and Subscribe! Channelnomics: https://channelnomics.com/  LinkedIn: https://bit.ly/2NC6Vli  Twitter: https://twitter.com/Channelnomics    Changing Channels Is a Channelnomics Production Follow @Channelnomics to stay current on the latest #research, #bestpractices, and #resources. At @Channelnomics — the voice of thought leadership — we define #channel trends, chart new #GTM strategies, and #partner with industry leaders to champion #diversity in the channel.     Episode Resources Host Larry Walsh: https://bit.ly/3beZfOa Guest T.C. Doyle: https://www.linkedin.com/in/tcdoyle/ Credits Production: Changing Channels is produced by Modern Podcasting. For virtual content capture and video-first podcasts, check out http://www.modpodstudio.com. Host Larry Walsh: https://bit.ly/3beZfOa Voice-Over: Denise Quan

Justin Crotty, senior vice president of channels at Netenrich, joins Channelnomics Changing Channels host Larry Walsh to discuss how data and device telemetry is transforming managed service delivery and value propositions.  Managed services in the channel are nothing new. Partners started delivering them more than 20 years ago, augmenting and replacing their legacy break/fix support with remote monitoring and management.   Increasingly, vendors — particularly legacy hardware and software vendors — are discovering the power and value of service and subscription models. Vendors want the same predictable recurring revenue that partners have generated for years. Wall Street and private equity investors are rewarding vendors that make the transition from transactional sales to service-based subscriptions.  Services ranging from endpoint management to cloud administration are generating petabytes of data. Through the telemetry of the data broadcasted by devices and applications in the field, vendors and partners have a rich source of analytics to diagnose performance and security issues.   While managed services have always promised customers quick responses to performance issues and system failures, the reality is that services are reactionary. Something has to happen to trigger an alert so a vendor or partner can take action. That’s changing, though, as data analytics become more available. Vendors are beginning to leverage telemetry to identify issues as early as possible so that they and their partners can take anticipatory action and prevent system failures for end users.  A vendor on the forefront of this trend is Netenrich, which is offering managed service providers a vendor-neutral capability to tap into the telemetry stream to identify and anticipate customer performance issues before they can cause more serious problems. Justin Crotty, senior vice president of channels at Netenrich, joins Changing Channels to discuss this growing trend of enabling partners to be more proactive.   Follow us, Like us, and Subscribe!  Channelnomics: https://channelnomics.com/   LinkedIn: https://bit.ly/2NC6Vli   Twitter: https://twitter.com/Channelnomics      Changing Channels Is a Channelnomics Production  Follow @Channelnomics to stay current on the latest #research, #bestpractices, and #resources. At @Channelnomics — the voice of thought leadership — we define #channel trends, chart new #GTM strategies, and #partner with industry leaders to champion #diversity in the channel.       Episode Resources  Host Larry Walsh: https://bit.ly/3beZfOa  Guest Justin Crotty: https://www.linkedin.com/in/justincrotty/  Credits  Production: Changing Channels is produced by Modern Podcasting. For virtual content capture and video-first podcasts, check out http://www.modpodstudio.com.  Host Larry Walsh: https://bit.ly/3beZfOa  Voice-Over: Denise Quan 

Larry Walsh, chief analyst at Channelnomics, discusses the performance challenges that channel chiefs face, explaining that they’re rooted in a fundamental misunderstanding of partner business models and ill-conceived presumptions about partner capabilities. Being a channel chief isn’t easy. Channel leaders face numerous challenges, including getting partners to perform in a way that contributes to company goals and revenue-generation expectations. This underlying challenge is amplified by the struggles that come from transitioning channels to new service and subscription models. In the 2022 Channel Chief Outlook report, Channelnomics reveals that 85% of channel chiefs say they’re challenged in getting partners to adopt new products, technologies, and services, while 83% say they’re grappling with getting partners to meet or exceed their sales goals. And 71% struggle to get partners to adopt new go-to-market models — mostly based on services and subscriptions. What’s the source of these challenges? Walsh posits two possible answers: myopic thinking and a fundamental misunderstanding of partner business models. Over the past two decades, resellers and integrators evolved their business models beyond transactional product sales and break/fix services. Partners make most of their money on managed and professional services. But vendors continue to think that they have to lead partners into the future of services and that partners are behind in their service capabilities. In this episode of Changing Channels, Larry Walsh, chief analyst at Channelnomics and host of the podcast, details what vendors get wrong about their partners’ business models and capabilities and what they need to do to overcome the challenge of generating superior channel performance that contributes to their corporate goals. Follow us, Like us, and Subscribe! Channelnomics: https://channelnomics.com/  LinkedIn: https://bit.ly/2NC6Vli  Twitter: https://twitter.com/Channelnomics   Changing Channels Is a Channelnomics Production Follow @Channelnomics to stay current on the latest #research, #bestpractices, and #resources. At @Channelnomics — the voice of thought leadership — we define #channel trends, chart new #GTM strategies, and #partner with industry leaders to champion #diversity in the channel.   Episode Resources Host Larry Walsh: https://bit.ly/3beZfOa 2022 Channel Chief Outlook report: https://channelnomics.com/product/channel-chief-outlook-the-2022-report/ Channelnomics Quarterly: https://channelnomics.com/cq/

Ingram Micro Cloud’s John Dusett joins Changing Channels host Larry Walsh to discuss new cloud research — conducted by Channelnomics and supported by Ingram Micro Cloud, Microsoft, and Google Workspace — and how the customer experience is crucial when it comes to service renewals and expansions. The cloud computing market continues to grow at double-digit rates. Over the next decade, businesses will continue to migrate systems and mission-critical workloads into cloud environments. They’ll adopt cloud-based applications to replace legacy client-side licenses, and they’ll subscribe to managed services to support their cloud resources. To say that it’s a good time for reselling and supporting cloud computing services is an understatement. According to our recent report — “Buying the Cloud: The As-a-Service Experience From the Customer Perspective” — 47% of SMB IT buyers, the prime target for the channel, plan to buy more cloud computing products in the next 12 to 18 months. End users are adopting infrastructure services, productivity software, business applications, and backup services. Moreover, they’re expanding their cloud utilization to include customer support applications and Internet of Things infrastructure. Cloud computing provides solution providers with recurring revenue. Customers pay for services on monthly or annual schedules, providing resellers with predictable income. The recurring-revenue model works well as long as the customer keeps paying, renewing contracts, and expanding service utilization. As solution providers have learned through managed services, customers are more apt to expand their cloud capacity when they have positive experiences and recognize the value of their spending. Customer experience is becoming a significant factor in solution providers’ cloud value proposition. While vendors are the source of cloud services, solution providers are the managers of cloud resources and customer experiences. If solution providers can facilitate a positive, seamless experience, customers are more apt to renew and expand their cloud contracts. According to the research conducted by Channelnomics and Ingram Micro Cloud, 38% of cloud buyers base their decision to renew contracts on their experience with a solution provider. In this episode of Changing Channels, John Dusett, Ingram Micro Cloud’s executive director of cloud services for the United States, joins us to discuss the increasing importance of customer experience in cloud computing engagements and what solution providers need to do to impress and satisfy their clients. Follow us, Like us, and Subscribe! Channelnomics: https://channelnomics.com LinkedIn: https://bit.ly/2NC6Vli Twitter: https://twitter.com/Channelnomics Changing Channels Is a Channelnomics Production Follow @Channelnomics to stay current on the latest #research, #bestpractices, and #resources. At @Channelnomics — the voice of thought leadership — we define #channel trends, chart new #GTM strategies, and #partner with industry leaders to champion #diversity in the channel.     Episode Resources Host Larry Walsh: https://bit.ly/3beZfOa Guest John Dusett: https://www.linkedin.com/in/johndusett/

TeamViewer’s Patty Nagle and Rob Thiele join Changing Channel’s Larry Walsh to discuss how they’re revamping their channel program to accelerate the company’s evolution into more use cases and market opportunities beyond their remote-access foundation. Many products start out as free, consumer-oriented offerings to capture market share for what’s often a singular purpose or value proposition. Over time, they evolve into more business-ready, enterprise-centric solutions. The trick is building the sales capacity and coverage to make the leap from legacy to future. The channel is often that evolutionary catalyst. One company that’s using the channel to make this leap forward is TeamViewer. Best known for products that enable remote access and control for endpoints, TeamViewer is expanding beyond its core into collaboration, workflow management, and augmented reality. While it maintains the freemium offerings that got it started, TeamViewer is increasingly looking to channel partners as a means of identifying new opportunities and servicing an expanding total addressable market. In this episode of Changing Channels, Patty Nagle, TeamViewer’s North America president, and Robert Thiele, vice president of strategic alliances and partners for the Americas, join host Larry Walsh to discuss how they’ve reshaped their channel program to account for different types of partners, customers, and use cases to facilitate growth beyond the traditional core. Follow us, Like us, and Subscribe! Channelnomics: https://channelnomics.com/  LinkedIn: https://bit.ly/2NC6Vli  Twitter: https://twitter.com/Channelnomics   Changing Channels Is a Channelnomics Production Follow @Channelnomics to stay current on the latest #research, #bestpractices, and #resources. At @Channelnomics — the voice of thought leadership — we define #channel trends, chart new #GTM strategies, and #partner with industry leaders to champion #diversity in the channel.     Episode Resources Host Larry Walsh: https://bit.ly/3beZfOa Guest Patty Nagle: https://www.linkedin.com/in/pattynagle/ Guest Robert Thiele: https://www.linkedin.com/in/robthiele/