Channel Partners

FAL 2016

For 25 years, Channel Partners has been a resource for indirect sales channels, such as agents, VARs and dealers, that provide network-based communications and computing services, associated CPE and applications, and managed and professional services

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Want more data? You can join the 451 Alliance at 451alliance.com/channelpartners. COVER STORY Agent Managed Service Provider VAR Cloud Service Provider Consultant Systems Integrator IT Distributor Other 24.7 18.9 15.2 11.9 9.9 5.8 4.5 9.1 What section of the indirect channel do you work for? % THE SHIFTING CHANNEL SANDS BY LORNA GAREY About the Authors: SHERRY HUBBARD-BEDNASZ is the senior manager of membership and data services at 451 Research where she wears multiple hats as a seasoned survey methodologist regarding 451's Global Digital Infrastructure Alliance, a member-driven "think tank" comprised of a worldwide network of highly-qualified enterprise technology and IT professionals that tracks real-time changes in corporate IT and digital infra- structure technologies. Prior to joining 451 Research, she was the survey research manager at CAI, a membership-based organization in North Carolina specializing in employer needs and development. SEAN RILEY is the director of alliance partnerships at 451 Research where he oversees the growth of 451's Global Digital Infrastructure Alliance. Prior to joining 451 Research, Riley was the global partner marketing manager at Grandstream Networks. He also previously worked for Hewlett-Packard, Samsung and Motorola. LORNA GAREY is the editor-in-hief of Channel Partners. LYNN HABER is a senior editor with Channel Partners. The technology landscape is changing, and not for the better for those partners solely focused on telecom. Yes, we know, you've heard that for years. But now we have proof. We asked respondents about their companies' primary and secondary revenue generators today, offering 16 options. We also asked them to look ahead 24 months. The top five present income sources: telephony provisioning/management; UC provisioning/ management; help desk, telephony or IT support; data center architecture or manage- ment; and cloud computing, public or hybrid. The secondary mix swaps data center for network or application security. In two years? Cloud moves into the top spot, seven full points ahead of telephony. And, data center architecture or management takes a nose dive into seventh place, yielding its spot in the Top 5 to WAN provisioning/management. We're willing to bet the data center consolidation trend and meteoric rise of SD-WAN have something to do with that. For secondary revenue, security moves into third place, while UC falls to fifth. Some respondents say their companies are on track, focusing on managed services and treating voice as just another data product or embracing cloud technologies. Many mentioned adding services and building on top of existing competen- cies — a UCaaS reseller is investing to monitor and manage customer voice-data-video traffic at a more granular level and layering on analytics. "Not only can we be proactive but also predictive," he says. "We can also show how much consump- tion, usage and adoption a customer is seeing so as to make the necessary change management to maximize their investments. We will also be investing in applications for UC that compliment workflows and or automate machine-to-human communications." What's important is to recognize that the walls between telecom and IT are coming down. How will you use your personnel budgets to compete with "born in the cloud" solu- tions providers and manage the transition to digital services and recurring revenue? 20% SAY CLOUD COMPUTING WILL BE THEIR TOP REVENUE SOURCE BY MID-2018. CURRENTLY JUST 8% CITE CLOUD AS A TOP EARNER. Data: Channel Partners and 451 Research CHANNELPARTNERSONLINE.COM 19

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