Channel Insights seminar presentation highlights, 27 January 2011

© Copyright Gorilla Corporation & Fox Parrack Singapour 2011. All rights reserved.

Channel Insights 2010Research Highlights

Research conducted by Gorilla CorporationPresentation & analysis by Fox Parrack Singapour


• Gorilla Corporation is a global organisation that supports Fortune 1000 companies in business growth and optimisation strategies worldwide

• Gorilla's specialist skills cover:

– sales and channel strategy

– partner ecosystems

– channel programs

– outsourced field sales

– telemarketing & inside sales

• The team’s experience includes working with IBM, HP, Oracle/Sun, Cisco, McAfee, Apple, Avaya, Alcatel, BT, Telefonica, Symantec, and Microsoft

Q

About Gorilla Corporation


• Europe’s longest established integrated tech-marketing agency

• Worked with many of the industry’s biggest brands such as BT, Cisco, Microsoft, Nortel, Novell, Oracle, Symantec, Xerox - as well as numerous emerging technology companies

• Deliver programmes covering: - Demand Generation and Lead Nurturing- Channel Marketing- Brand and Product Communications

• Over two decades of channel marketing experience, starting with launch of Frontline/First Software (now C2000) in 1984

• Founder member of n42, pan-European network of tech-focused marketing agencies

• Our aim: help technology companies derive greater value from the marketing function

www.foxps.com

About Fox Parrack Singapour

http://www.foxps.com/


• Over 100 in-depth interviews were carried out between November 2010 and January 2011

• Detailed questionnaires (20 minute interviews) provide both qualitative and quantitative insights

• Respondents were drawn from a cross- section of the partner community in the UK

• Survey follows previous Channel Insights research carried out over several years (first study 2002)

Q

The Channel Insights survey


Respondent profile

Q


Q1

What is your company’s primary business?

Traditional IT VAR/reseller

44%

Specialist services company

15%

Internet/e-business solutions/Web integrator

10%

Telecoms reseller/Integrator

9%Other

7%

Systems Integrator5%

Professional service provider outside IT

4%

ISV3%

Network reseller/Integrator

3%


What is your role within your business?

Partner3%

Director30%

Manager44%

Executive1%

Assistant2%

Other20%


How big are these partners?

What turnover did your company achieve last year? UK 2010

Less than £250,000 12%

£250,000- £500,000 14%

£500,000 – £1m 14%

£1m - £2m 13%

£2m - £5m 12%

£6m - £10m 2%

£11m - £50m 11%

£50m+ 5%

Confidential/Non Disclosed 13%

Don’t know 3%

Q2


Which markets do they focus on?

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Enterprise Mid Market SME All the Above

2004 2006 2010

Q6


Q3

Most important revenue streams

Please rate the following in terms of importance as revenue streams for your business.

Veryimportant

Consulting / IT services 19%

Systems / PCs / Portables / Mobile computing 13%

Networking LAN / WAN/ products and related services 11%

Networking Voice products and related services 11%

Desktop software 11%

Enterprise Software/Applications 10%

Cloud Computing/SAAS/Virtualisation 9%

Security and security-related services 8%

Storage and storage-related services 6%


The role of services

Q


0%

5%

10%

15%

20%

25%

30%

35%%

Re

spo

nd

en

ts

% Revenue

2008 NOW IN 2 YEARS TIME

Service lightweights income dropping

Service heavyweights predicting growth

Q4

Revenue from services


The business issues

Q


Partners’ top 5 concerns for their businesses

2010 2006 2004

1Differentiating company

from competitionMarketing our company

The need to boost our services-based revenue

2The need to boost our

services-based revenueThe need to boost our

services-based revenueMarketing our company

3Managing through

the IT downturnManaging company growth Generating cash

4 Generating cash Generating cashDifferentiating company

from competition

5Marketing our company Need to draw more on

partnerships with other co’sUsing the internet as a business tool

5Need to draw more on

partnerships with other co’s

Marketing seen as less important!

Q5


Awareness of customer concerns

Q

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%2004 2006 2010


Partner marketing issues

Q


Do you have a dedicated marketing team?

YES, 52%

NO, 48%

2006

YES, 47%

NO, 53%

2004

NO52%

YES48%

2010

Q12a


Own dedicated marketing budget?

Yes, 40%

From another

budget, 31%

No, 29%

2010

Q13

Yes57%

No40%

From another budget

3%

2006

Yes47%

No50%

From another budget

3%

2004


How marketing methods have changed

Q


Vendor, 7%Own Initiative,

93%

2010

Who initiates marketing campaigns?

Q15

Vendors7%

Own initiative

93%

2006Vendors

6%

Own initiative

94%

2004

We’ve not done

a great job convincing

partners!


Q

Least useful marketing assistance from vendors

“Really, we don't want you to help us with

our marketing!”

“And we don’t value Accreditation either!”


Best vendor marketing initiative in 2010?

...said they could not name one!

Q17


Vendor relationships

Q


Q23

Are you planning to increase vendor relationships next year?

Increase, 31%

Decrease, 14%

Stay about the same,

32%

Unsure, 22%

Security & Storage Partners looking to add


Partners’ views on future

Q


Business growth

0%

5%

10%

15%

20%

25%

30%

35%

40%

1-10% 11-20% 21-30% 31-40% 41-50% 51-60% 61-70% 91-100%

% R

esp

on

de

nts

Business growth aim

By how much do you aim to grow your business revenues next year?

Q28

Wouldn’t it be great to be working with these!


Q29

Strategies to grow your business

Other strategies inc:

• Develop own products / solutions: 7%

• Develop new vendor lines: 5%

• Partner ecosystems / partnerships: 4%

0%

5%

10%

15%

20%

25%

Investment in sales and business development

Target new market areas

Develop own service solutions

Investment in marketing

25%

18%

16%13%


Q

Relationship equation

Vendor

Partner

Customer

Demand

CreationPull

Loyalty

Loyalty

Support


Channel Disconnect 1: the role and value of marketing– #1 Issue is ‘differentiation’ but don’t see marketing helping this

– just 40% have dedicated marketing budget, 50% no marketing resource

– majority not looking for the vendor to help with marketing

– focus on leads, and not necessarily a growth strategy

Channel Disconnect 2: issue of trust and value– majority not looking for direct vendor involvement (e.g. events, joint GTM)

– accreditation no longer seen as valuable, or tech training

– with the focus on lead provision and a go-it-alone attitude, these are ‘arrangements’ rather than relationships (suppliers versus partners)

Q

Summary


• To Partner Marketing– a higher priority and more than just Partner Comms (e.g. monthly Partner

Newsletter), untargeted emails

– Partner Marketing Strategies; need to change attitudes and behaviour (education, motivation) – rebuilding trust and that understanding of value

• Through Partner Marketing– the demand creation piece, driving the brand into the customer to create

purchase preference is vital (the 90% rule)

– consistent, constant marketing building effort

• With Partner Marketing– greater reflection on what partners need (differentiation) and on

understanding the ‘rising stars’: growth-orientated, marketing-savvy partners

– investing in the right type of partners and aligning services and support

– a shift from vanilla marketing to a marketing support service

Q

What it means for Partner Marketing


Thank youDo you have any questions?

Q

Technology

Channel Insights seminar presentation highlights, 27 January 2011