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Amazon Consulting 2011 Amazon Consulting Terms of Use The information in this presentation is produced by Amazon Consulting and may contain previously unpublished synthesis of materials. Permission to use, copy, modify and distribute any material from Amazon Consulting is hereby granted provided that the contents of this "Terms of Use" notice appear with all copies. In addition, if the material used includes other credit or copyright information, then this source information should also be included with all copies. Use of Amazon Consulting content (documents, white papers, articles, research, etc.) is for informational and non- commercial or personal use only. You may not modify any content, copy, distribute, transmit, display, perform, reproduce, publish, license, create derivative works from, transfer, post on any network, broadcast in any media or sell any information unless expressly permitted by Amazon Consulting. Content other than that belonging to Amazon Consulting is licensed or otherwise published by Amazon Consulting with the permission of the owner of the material. All rights in such materials are reserved to the respective owners. For questions and media requests, please contact: Cathy Sperrazzo Eye-to-Eye Communications, Inc. 858-565-9800 [email protected]

2011 State of Partnering

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Page 1: 2011 State of Partnering

Amazon Consulting 2011

Amazon Consulting Terms of Use

The information in this presentation is produced by Amazon Consulting and may contain previously unpublished

synthesis of materials.

Permission to use, copy, modify and distribute any material from Amazon Consulting is hereby granted provided

that the contents of this "Terms of Use" notice appear with all copies. In addition, if the material used includes other

credit or copyright information, then this source information should also be included with all copies.

Use of Amazon Consulting content (documents, white papers, articles, research, etc.) is for informational and non-

commercial or personal use only. You may not modify any content, copy, distribute, transmit, display, perform,

reproduce, publish, license, create derivative works from, transfer, post on any network, broadcast in any media or

sell any information unless expressly permitted by Amazon Consulting. Content other than that belonging to

Amazon Consulting is licensed or otherwise published by Amazon Consulting with the permission of the owner of

the material. All rights in such materials are reserved to the respective owners.

For questions and media requests, please contact:

Cathy Sperrazzo

Eye-to-Eye Communications, Inc.

858-565-9800

[email protected]

Page 2: 2011 State of Partnering

Amazon Consulting 2011

0Amazon Consulting 2011 Influencing the Influencers: Research Executive Brief

- Research Report -

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1Amazon Consulting 2011 5th Annual State of Partnering Study: Research Report

2011: Skills Diversification and Services Engagement

For five years, Amazon Consulting has been researching the partnering plans and

priorities of the IT vendor community. The last couple of years have been a bit

tumultuous, with a stronger current of overhaul than optimism. The turbulent economy,

increased globalization, introduction of disruptive technologies and evolving solution

provider business models have made it a challenging environment in which to partner

in a predictable and positive way.

This research contains reflections on the challenges, priorities, metrics and

investments of technology vendors as they go to market with and through various

indirect channels. It is the only study we do annually which is exclusively vendor

focused. As such, it affords great insights into where the vendor community is directing

its resources and energies for 2011.

Key TrendsFrom this broad body of research, we see several notable trends:

Partner types: Service providers are the new “it” channel and is a big focus this year for infrastructure and software vendors.

Globalization: Global program frameworks are the new standard. Partners applaud the simplicity and vendors are saving time and money.

Enablement: Technical certifications still equate to high value, but sales skills will continue as a big priority for competency.

Coverage: 2011 investments focus on business planning and field and phone-based partner management.

Services: Vendors continue to drive partners to build services and are increasing the sharing of services assets selling/delivery support

to mentoring investments.

Cloud: Cloud program and engagement models are coming of age. Contrary to rumors, vendors are going to market with partners

for these solutions.

Spending: High ROI expectations remain, but vendors are making strategic investments in diversifying partner skills.

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2Amazon Consulting 2011 5th Annual State of Partnering Study: Research Report

Global Value-Based Program Structures Now Standard

As we‟ve watched vendors‟ focus and investment throughout the last five

years, there have been a number of drivers moving vendors to a more

streamlined and consistent global partner program structure. These

include:

The ongoing consolidation of the solution provider community;

The increased global access of end-users for IT products and services,

driving partners‟ business model to be more globally aware and

responsive;

Vendors‟ need for more cost effective and scalable partner support

programs;

Solution providers‟ need for simplicity and reduction in administrative

overhead in working with their suppliers.

The strongest global program structures we see allow for a number of

important regional variations to meet the economic requirements and

business practice variations of different regions. These elements typically

include resale discounting, deal registration payouts, annual revenue

targets and MDF percentages. Very few (<20%) of vendors indicated

their regions still have their own distinct channel programs.

As evidence of this trend toward global programs, nearly half of vendors

today indicate their global program framework is now in place (Figure 1).

A significant number also indicate they are realizing scalability and cost

saving benefits as a result of this program approach.

Partners also seem happy with this global program approach. Over a third

of respondents declare their partners are happy with the clarity and

simplicity of their global program. Solution providers‟ demands for ease

of doing business, clear ROI and minimal overhead costs will continue to

motivate vendors to be as consistent and predictable as possible in this

area. For larger solution providers who engage across multiple business

models and geographies, this trend is a critical success factor in effective

vendor engagement.

Figure 1

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3Amazon Consulting 2011 5th Annual State of Partnering Study: Research Report

New Business and Competitive Marketshare Lead Value Metrics

Figure 2

Performance expectations for global partnering efforts have clearly evolved

over the last five years. Not surprisingly, the core metric of new business

remain #1 this year; it has been either the #1 or #2 metric for the last four

years (Figure 2). Deal registration programs rewarding partners for new

projects and customers are the table-stakes of most vendor programs today.

And, these incentives are now extending regularly to new business gained in

key vertical markets and around certain vendor architectures and multi-

product solution sets.

We were a bit surprised to see technical expertise re-emerge as a key value

metric, given the shift in focus in recent years to sales skills. Despite the

goal of sales skills improvement for this year and last, core technical skills

remain the primary indicator of future value-based selling for many vendors.

Although vendors are looking at partner skills more holistically through their

enablement efforts, many of today‟s emerging technologies (mobility,

business intelligence, unified communications) require especially deep

technical skills to create successful customer engagements.

Competitive marketshare gains emerged this year as a new value metric.

This aligns with vendors‟ desire to get back on the offense for 2011 and

pump up top-line growth with and through their partners. However, partners

are usually less likely to take on a vendor‟s competitive battles, particularly

where they might also support that competitors‟ product line. In fact, we

see a number of single-brand or “franchise” building type channel programs

reemerging from vendors with broad product lines. Their aim – to build a

much broader, cross-portfolio approach to their partners‟ support of their

technologies.

These programs don‟t necessarily focus on brand exclusivity for a given

vendor, but offer rich rewards in the form of discounted training, field support

and extra marketing funds to partners who are effective in cross-selling their

portfolio. IBM, Cisco and HP are the more notable vendors with programs

like this, and we expect their competitive battles against each other for

partner mindshare and investment to heat up even further in 2011.

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4Amazon Consulting 2011 5th Annual State of Partnering Study: Research Report

Service Providers Come into the Spotlight

The IT market has been moving slowly but surely to a converged services model

over the last 5-7 years. Converged services is an IT delivery model where pre-and

post-sale professional services, products and support all come together in an

integrated offering that solves a specific business pain-point. And, both vendors

and solution providers have been jumping on the bandwagon to evolve their

services sales and delivery models in this direction. Customer adoption of cloud

services has just accelerated that trend.

Services-based solution provider business models are attractive to many vendors,

as they attempt to become more business relevant and deepen customer insights

through their partners. Business partners who meet end-users‟ overall IT needs by

offering comprehensive pre- and post-sale services and selling technology tend to

have the most lasting customer relationships. This was reflected in the strategic

value attributed to systems integrators, MSPs and service provider/carriers in this

year‟s study (Figure 3). Although resellers remain the most strategic partner type,

we have seen a dramatic increase in licensing models, engagement structures and

program support offered to regional and national managed service providers as

well as national and global service provider/carriers in the last 9-12 months.

Regional managed service providers are easier to address and support in broad-

based channel programs than are their larger telecom counterparts. Many of the

larger telecom/service providers (Terremark, AT&T, Verizon, BT, Savvis) have

historically been handled by vendors as large enterprise customers, and as such

have been covered by the vendors‟ direct enterprise sales teams. About a third of

vendors indicate they already engage with service providers and will continue their

recruitment and enablement efforts. Another 20% are planning to put a large focus

on this class of partner to actively recruit and engage them in 2011 (Figure 4).

As telecom/service providers diversify their offerings into applications and cloud

services and attempt to penetrate the SMB market, their expectations of their

suppliers for go-to-market support are increasing. Many have developed their own

down-stream channel programs to attract smaller MSPs and VARs to sell and

promote their broad infrastructure services. They often look to their leading

vendors partners (EMC, NetApp, Cisco, HP) to achieve that sales and marketing

success through the vendor‟s broader VAR and solution provider network.

Figure 3

Figure 4

Service Providers

are existing partner

type, will continue

to recruit and enable

Big focus, will actively

engage and recruit

Service Providers

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5Amazon Consulting 2011 5th Annual State of Partnering Study: Research Report

When we explored the state of partnering efforts for cloud services, the results

reflect the continued dependence vendors have on channel partners to assist in the

sale and/or delivery of these offerings (Figure 5). What‟s also interesting is that

there is not one clear leading channel engagement model for vendors as they look

ahead to cloud services. The majority will deliver cloud services directly to end-

users and use partners as sales agents or resellers, but another sizeable group will

only sell technology to their solution providers and expect them to deliver their own

cloud services to the market.

Contrary to industry rumors, most vendors will be dependent on their channel

partners for one or more functions in getting cloud services to market in 2011. Over

a quarter will deliver direct cloud services and use their channel partners in a

traditional reselling model. We see examples of these reselling channel programs

from both hardware (Cisco and HP), software (Microsoft, Oracle, Salesforce.com)

and service providers (Rackspace). Some in fact are offering automation tools to

ease partners‟ burden in billing and contract management of their cloud services. A

nearly equal amount of companies also plan to deliver cloud services directly to

end-users and use partners as only sales agents. Their expectations are for the

partner to leverage their existing customer base (often SMB focused), evangelize

their cloud solutions and refer the customer for consumption to the vendor directly.

We predict that this engagement model will be the least popular model, over time,

as partners themselves invest in a services offerings and attempt to retain customer

control from the vendor.

The top cloud response from vendors clearly indicates their intent to sell technology

to partners to enable cloud offerings but not to sell cloud service directly to

customers. This is the most common approach for most server, storage and

networking manufacturers to date, as they are accustomed to using their

infrastructure-focused partner community to create their own solutions and services

around their technology. The big focus for this class of manufacturers is to engage

around professional services mentoring, and teach their hardware-focused partners

how to successfully conduct pre-sales assessments to identify the private, hybrid or

public cloud opportunities and migration path most suitable for their customers. We

see these services mentoring programs from most every vendor we work with.

Cloud Engagement Models Reveal Partner Dependence

Figure 5

Only 17% of respondents indicate they are still

formulating their cloud partnering strategy. We think

this is a bit understated, as many vendors are still

conducting pilots around cloud services and technology

engagement and determining how many of these

models they will offer. Only recently have some of the

larger infrastructure vendors announced their initial

cloud engagement models – most notably IBM, HP and

Cisco.

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6Amazon Consulting 2011 5th Annual State of Partnering Study: Research Report

Business Planning and High Touch Support a Priority

In last year‟s study, business planning activities emerged as a big focus. And,

this year the focus continues and increases, extending down beyond the top tier

of vendors‟ partners (Figure 6). And another 30% of vendors said they were

going to start business planning to better identify their strategic partners.

Assuming that activity is real business planning and not just basic profiling and it

drives mutual accountability and investments, this activity will be very positive

for both partners and vendors.

We think response also indicates the level of high-touch support and business

model insight vendors both want and need in 2011. The only challenge for

solution providers here is the possibility of being inundated by different vendors,

all wanting to do business planning, much of which might be redundant.

Partner Management CoverageFollowing on the theme of high touch support, in our questions about 2011

investments, we asked about changes planned in vendors‟ partner coverage

models. We were surprised (and delighted) to hear of a resurgence in people-

based resources to help support partners. Over a quarter of respondents plan

to add field partner-facing sales reps, and another 17% plan to add phone

based partner sales reps (Figure 7). Over the last two years we saw many

vendors reduce their partner-facing sales headcount and/or move people from

field based positions to phone-based roles. In some cases, this had a negative

impact on both vendor/partner relationships or stalled the onboarding and

development of new partners.

Staffing support is expected to go well beyond basic sales and technical

training. Nearly a quarter of vendors indicate they plan to add business

development reps to assist with business planning and overall enablement.

Another 21% expect to add technical staff (SE‟s) to provide deal support and

help partners architect their solutions. This staffing model assumes that the

structure of the basic channel program from these vendors is relatively simple

and easily accessed, so that the local resources can focus on longer-term

planning, solution development and marketing campaigns. Theoretically, the

addition of phone reps or a help desk function should be able to offload basic

program questions., at least in the bigger or more complex programs.

Business Planning

Figure 6

Figure 7

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7Amazon Consulting 2011 5th Annual State of Partnering Study: Research Report

Enablement Focused on Sales Skills

Vendors who view their channel partners holistically tend to have greater

success through indirect channels than those who look at only isolated skills

sets. Most vendors indicate their ultimate goal in applying any enablement

resources is to create a self-sufficient and relatively autonomous partner

community (Figure 8). Beyond the basics of business acumen, vendors has

significantly broadened their enablement efforts to include solution selling and

prospecting skills, service delivery skills and marketing skills. And, those

enablement efforts tend to be directed at those partners who have demonstrated

the most commitment to building technical skills and certifications and those with

the highest probability of driving incremental market reach and revenue for the

vendor.

Of all the challenges of 2010, this year‟s respondents ranked increasing partner

sales competency as their #2 challenge with a nearly 50% response. In last

year‟s study it was the #1 area for skills improvement, and in both this and last

year‟s study, increasing partner sales competency was respondents‟ #1 overall

priority. Partners‟ ability to do effective pre-sales assessments and sell value to

line of business decisions makers have remained among the most desired

sales skills by vendors for 2011 (Figure 9).

Figure 8

Figure 9

We attribute this focus on sales skills improvement to several

issues:

The sluggish economy shining a light on partners with limited

qualifying and prospecting skills;

An exaggerated focus on technical skills and specializations over

the last 5 years, to support emerging technologies;

End-users‟ demands of solution providers to understand their

business processes and do adequate needs assessment and pre-

sales work before proposing a solution;

Industry consolidation among solution providers forcing better

differentiated services and selling approaches.

In any scenario, we expect to see vendors continue to produce

better

and better sales tools, solution selling guide and playbooks that

attempt to align the vendors‟ sales methodologies and messaging to

that of their channel partners.

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8Amazon Consulting 2011 5th Annual State of Partnering Study: Research Report

State of P2P Collaboration and Social Media

of vendors plan to increase

P2P collaboration

In the current economic environment, solution providers are (and need

to be) very selective about their investments in staffing and skills. And

as vendors push solution providers to invest in deep technical skills and

market specializations, it would seem logical that most (other than the

very largest) would need to team up with peers to provide their customer

a broad set of skills without requiring significant investment.

This has been a growing market dynamic for some time among the IT

solution provider community. However, the vendor‟s desire and

resources applied to fostering partner-to-partner collaboration (P2P) on

a broad scale has waxed and waned. As an overall priority in this year‟s

study, it ranked #15 of 16 choices with only an 11% response. In last

year‟s study fostering P2P collaboration was noted as a priority by only

15% of vendors.

Ironically enough, recruiting or maintaining relationships with the right

solution providers to provide market coverage / capabilities has been

near the top of the priorities list for the last three years. Couldn‟t vendors

more efficiently accomplish this if they could stop trying to find every

skill set they need in one partner and better foster P2P collaboration?

There are many professional associations, buying groups, consortiums

and distributor-sponsored communities (VentureTech Network,

VARNex, TechSelect) that work toward this goal. And, we acknowledge

this isn‟t easy. Relationships need to be formed, trust built, common

goals identified, financial worked out and on and on.

One of the business value promises of social media has been the ease

with which it puts us in contact and collaboration with each other.

However, we see the vendor community so far really only successful in

using social media for outbound marketing of its company and channel

programs. A valid objective, of course, but different than fostering

collaboration.

When we asked vendors how they plan to use social media with their

channel partners in 2011, the top priority of better communicating the

value of their company and channel program was #1 on the list, up

nearly 20 percentage points from last year‟s study. So, social media is

now legitimately an outbound channel marketing medium.

There was an equal response to last year around using social media to

encourage more vendor to partner two-way communication (52%

response). Admittedly, there have been some very successful private

and public social media communities built within vendors‟ channel

communities (Cisco, IBM and Salesforce.com come to mind). Using

social media to foster P2P collaboration actually jumped from 2010 to

2011, with a 31% response. However, these on-line efforts by the more

innovative vendors are still too early to judge and metrics for success

are still being formed.

Figure 10

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9Amazon Consulting 2011 5th Annual State of Partnering Study: Research Report

Services Readiness is New Enablement Priority

Some of the top priorities around skills development for 2011 equally relate to

sales skills as they do to services skills. The ability to do effective pre-sales

assessments and enhance post-sale professional services methodology were

both in our vendor respondents‟ top priority list for 2010 and 2011, indicating the

growing importance of service skills to the vendor community.

In our ongoing consulting work, we‟ve seen a steady and notable increase in

focus on services engagement models and services-tailored channel programs.

What‟s interesting is we see an overall desire from partners to become

increasingly autonomous for services delivery from their leading suppliers, while

vendors are increasingly focused on closer engagement in the form of sharing

tools, mentoring and doing co-delivery.

Another data point supporting the solution providers‟ desire for autonomy is the

decline of partners as purely sales agents, decreasing from nearly 70% of

vendor responses in 2009 to 25% for 2011 (Figure 11). As vendors continue to

invest in sharing services assets and pushing partners for value-based selling

while still working on the clarity and conflict of their services engagement

models, it‟s inevitable that solution providers will want to delivery services free

of vendor involvement.

Figure 11

Vendor engagement models need to be clear, consistent and

conflict free before solution providers will trust or invest in a

vendor. Lack of clarity or channel conflict around services

delivery seems to have decreased from last year to this year

(Figure 12). We do see a lot of vendors investing in this

area, for both scalability and cost-saving measures but also

as a way to empower partners and urge them to invest in

services.

In keeping with that empowerment, sharing of services IP is

definitely on the rise. We‟ve seen a wide variety of vendors

actively packaging and sharing their services tools, scopes of

work, reference architectures and other intellectual property

in the last year. New programs to certify service providers

on delivery (and sales) skills for services are also popping up

left and right. This open sharing of IP begs the issue of

service delivery success metrics, for vendors to be able to

rationalize this enablement investment. We see metrics

more commonly now around customer satisfaction and

services quality, executed through surveys and audits.

57%unclear

2010

23%unclear/conflict

2011

Services Conflict/

Rules of Engagement Clarity

Figure 12

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10Amazon Consulting 2011 5th Annual State of Partnering Study: Research Report

Partner Profitability Plans & Services Growth Barriers

Figure 13

Figure 14

Services Investment BarriersDespite the intense desire many vendors have to get their channel partners to

invest in a more services-centric business model, this economic environment

has not been an easy time to make that demand.

When we polled our vendor respondents this year about the barriers they‟ve

seen to their partners further investing in a services-based business model,

the answers were quite varied (Figure 14). The top response was an issue

we„ve heard a lot about in the last two years, namely insufficient access to

capital. That‟s been a market reality, especially for smaller solution providers.

A number of vendors jumped into the fray last year in 2009 and 2010 offering

creative financing programs to both their end-users and solution providers,

either directly or through distribution, with notable success.

A surprising response to us was the 26% of vendors having heard from their

channel partners that there‟s insufficient customer demand to warrant a

services investment. That response doesn‟t seem to align to industry

projections of professional services growth. But, it likely has a lot to do with

the solution providers‟ ability to adequately assess customer needs and

position services correctly as part of a long-term solution.

Partner ProfitabilityBeing well capitalized goes hand in hand with having sufficient

selling and retained margins. Partners who can/did not invest in their

services capabilities or emerging technologies are more likely to be

those suffering from lack of sufficient profitability in the last two

years.

In this year‟s study, the top actions the vendor community is taking to

counteract profitability issues for their partners include engaging in

business planning and doing more lead generation for/with partners.

Business planning was #1 on this topic in last year‟s study too, and

we‟ve seen elsewhere in this research how broadly vendors are

planning to invest here in 2011. Partners will always welcome vendor

assisted or created leads. As marketing automation and lead

tracking systems improve we expect vendors to continue to invest in

this area with their channel partners.

Overall, we think strong cross-functional enablement programs and

decreasing process or program complexity are probably the two

most sustaining activities vendors can engage in to help partners

increase profitability.

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Investment Appetite is Strong, with High ROI Expectations

The last two years have been challenging for any economic investment that wasn‟t

well understood and rationalized. And our respondents indicate that 2010 was

indeed a year where they highly scrutinized most every partner-related

investments (Figure 15). A higher level of ROI expectations seemed to emerge

after 2009‟s economic low point, and the “new normal” is for both variable and

fixed partnering expenses to undergo a high level of scrutiny.

What‟s encouraging (and a bit surprising) is that vendors made few reductions in

fixed or variable expenses in 2010. Much of that happened in 2009. Some

vendors (30%) even pressed the accelerator in 2010 and spent ahead of 2009

levels in an effort to help counteract the anticipated lack of investment by their

partners. We saw these investment come most in the form of new deal

incentives, solution-selling incentives and selective demand generation marketing

efforts.

When asked what investments provided the highest ROI in 2010, we see the

same top three elements from last year‟s study (Figure 16):

partner facing staff

reselling discounts

deal registration incentives

The high ROI on partner-facing staff supports the previously mentioned plans to

significantly expand high touch people support in 2011. Pay-for-performance

programs such as deal registration and reselling discounts are usually what

continues when spending gets tight. Given the continued strategic importance of

traditional resellers, we expect reselling discounts and deal registration incentives

to remain as core offerings in most channel programs, uninterrupted by funding re-

balancing.

We expect market development funds will start flowing again this year. This area

went through its unfair share of scrutiny and cuts over the last three years.

However, we see a lot of new tools being launched to assist with campaign

building and delivery, especially as it relates to web events and social media-

based marketing.

Figure 15

Figure 16

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Ease of Doing Business Imperative

77%2008

59%2009

37%2010

38%2011

The quest to be easier to do business with is a noble one, but one that fades in

and out of vendor‟s priorities depending on what they‟re trying to achieve with

partners at the time. It tends to be a higher priority for partners who are on the

receiving end of overly complex channel programs.

Yet, it‟s again in the top three overall priorities for our vendor respondents this

year, with a 38% response. And, it‟s been in the top three overall priorities for

our vendor respondents since 2008 (Figure 17). When top-line results are

strong and channels are growing, vendors tend to focus on this issue as a way

to get a competitive advantage and create even more satisfied partners. When

the vendor and/or its channel is struggling, focus gets applies here as a means

for cost savings and efficiency. Other reasons why we think ease of doing

business is back on the vendors‟ short-list include:

Information transparency: with the growth in social media, instant access

and web2.0, businesspeople are used to getting answers quickly, and from a

variety of devices. Ordering a software license shouldn‟t take 4 days when

placing an order on Amazon.com takes 30 seconds.

Global programs: Moving to a global framework tends to shine a light on

overly complex program elements that don‟t scale or need to be automated.

Evidence of this is in the rise of outsourced help-desk functions to support

basic program questions, relieving the field teams of these details.

Complexity = cost: Partners have less tolerance for overhead costs

associated with vendor programs and business processes. They want to invest

their resources not on administration but in driving revenue.

Business planning: Vendors are getting closer to their partners through

business planning; discussion around simplicity and time wasted on vendor

program requirements often come out in this planning

On-line sales training: Vendors continue to invest in on-line sales training

as a way to solve for a lack of sales and prospecting skills; on-line sales

training is often grouped into ease-of-doing-business initiatives

Figure 17

Ease of Doing Business – Priority Trending

Figure 18

We see ease of doing business as one critical component in an

overall Partner Value Equation (Figure 18). The math is a simple

equation: opportunity divided by investment should yield a 2-3x

ROI for the partner. And every element in the denominator

investment list has the potential to be overly complex. In fact, in

other Amazon Consulting research, the top two most complex

elements partners noted which impact their ability to service

customers are pricing and quoting systems and technical

certification programs. This complexity is a tangible element of

the solution providers‟ decision-making relative to continued

investment in a vendor‟s product line.

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13Amazon Consulting 2011 5th Annual State of Partnering Study: Research Report

Essential Vendor Guidance

We recommend several actions based on this year‟s study:

1. Declare your cloud strategy NOW: If you haven‟t already

done so, define your go-to-market plans for cloud services

and declare your partner engagement strategy immediately.

And clearly address where services providers fit. Your

model(s) is likely to change several times in the next several

years, but lack of a statement early in 2011 will be

conspicuous by its absence.

2. Do real planning, not profiling: Business planning is a

worthy investment of time and resources but only if it drives

new actions and results for both the vendor and partner.

Create a collaborative process that makes this planning as

valuable to the partner throughout 2011 as it is to you.

3. Look at the whole partner: Technical skills are

fundamental for emerging technologies. But, sales and

service delivery skills are becoming increasingly critical for

demanding customers. Create a way to measure a more

balanced set of skills, and make services enablement a BIG

priority within that scorecard.

4. Find and eradicate complexity: Complexity = cost =

partner margin and loyalty drag. More high touch sales,

business development or technical people will only help if

they can get past the day-to-day complexity issues of your

program and processes. Accelerate your focus

5. Invest to grow: With signs of recovery on the horizon, well

placed aggressive spending in enablement, field coverage or

co-marketing should yield results stronger than in past years

and help your partner program rise above the noise.

Declare your cloud strategy NOW:

Develop a clear vision and detailed engagement models to motivate partner investment

Do real planning, not profiling: Create a collaborative business planning

process with mutual accountability

Look at the whole partner:Create a scorecard to measure and advance overall

skills: Make services enablement a BIG priority

Find and eradicate complexity:Vigorously audit program complexity; revise coverage model to optimize partner support

Invest to grow:

Plan an offensive investment strategy that maximizes spend in enablement & selling support

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Research Background

Established in 1997, Amazon Consulting, LLC, (Mountain View, CA) increases the impact of partnering by designing, implementing

and automating effective partner models. Amazon Consulting‟s clients entrust them to formulate growth strategies, build route-to-

market models, perform competitive benchmarks, design partner programs, facilitate partner advisory councils, and provide

temporary experts for project management and program execution. For clients looking to optimize the partner relationships and

improve organizational efficiencies, Amazon Consulting offers PartnerPath, a modular partner management automation system. For

more details visit us at www.amazonconsulting.com.

This full report is only available to subscribers of Amazon Consulting‟s comprehensive PartnerG2 market intelligence subscription.

Annual Revenues Product MixGeography Focus

We had 100 unique vendors respond to this year‟s study. Their profiles in aggregate are detailed below: