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

Follow us, Like us, and Subscribe!

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

Channelnomics Podcasts:

© 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!

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

© 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

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

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