The IT Channel Revolution is staring us in the face

Four plus years ago (and reposted 9 months ago) CSBexcellence posted a blog discussing the evolution of the IT channel titled "The Cloud Solutions Provider aka Cloud Revenue Producer has Arrived". When originally posted way back when, we predicted that the next-gen partner - called the CSP or CSB or Modern MSP or whatever name you like would start ruling the channel world and the IT Channel Revolution had begun. This is the world of cloud-first partners truly capitalizing on cloud and building a high value business - and all cloud vendors and distis would heppy campers. Hmmmm.............

Well, four years later, we truly believe the IT Channel Revolution is upon us but we also know exactly what is slowing it down. It certainly isn't lack of demand from end customers, they are consuming cloud faster that any of the most bullish predictions. It's also not due to lack of cloud solutions for the SMB - there are arguably too many solutions that often causes cloud headaches. And it's also not due to the vendors and distis not pushing cloud to the channel with tons of incentives.

So what is causing the channel to drag their feet to embracing the cloud?

1. Lack of Partner Enablement Programs and Tools 2.0 aka Partner Cloud Business Enablement Programs and Tools.
Last year when chatting with vendor or disti Channel Chiefs they were happy as clams because they would tell me "we're getting tons of partners signing up to our cloud programs". I would say great and then pitch to them the CSBexcellence Partner Cloud Business Enablement Programs and Tools - all to help the partners "build a profitable cloud business" addressing the question from partners "how do I amke a busines from cloud?". It fell on deaf ears, being told, "I'm fine, I have tons of partners, helping them build their business is not my job etc".

Oh, but today, same conversation they are saying "We have tons of partners signing up for our cloud program, but they aren't selling anything - oh crap". So I'm now starting to see some "let me say attempts" at Partner Cloud Business Enablement Programs and Tools - workshops, assessment tools. Guys, this is very, very different than your traditional Partner Enablement Programs and Tools, it's not what you currently have simply respun and it's certainly not a workshop where 75% of the attendees are on their laptop clearing trouble tickets.

One Channef Chief I spoke to believes - there are approximately 400,000 IT channel partners worldwide, 1% (4,000!!!) are deep in the cloud pool and are cloud revenue producers, 20% (80,000) have their toe in the cloud pool testing the waters and selling cloud only when they need to, and the remaining 80% (320,000) are doing zippo cloud. Now, whether or not these numbers are accurate - no one knows - but the fact remains - a rediculously small percentage of partners are selling cloud today. Hmmmmm..........

Moral to #1 - no soup to nuts Partner Cloud Business Enablement Programs and Tools - no Channel Revolution...no revenue.

2. Lack of the channel's acceptance of, appreciation of, and expertise to execute on "the new world of marketing and sales" aka marketing and sales 2.0, inbound, digital marketing etc. No, this is not the vendor or distis job to do it for their partners - this is solely the partners' job.

Acceptance - do I really need to go here? How did you buy your last TV, laptop, or even car? Where was the sales rep? How did you make your decision? It's called the "buyers journey". And cloud buyers are doing the same thing - accept it. Oh and your legacy sales rep(s) will increasingly become a cash burden to you and irrelevant.

Appreciation - this new world is Hard with a capital H and it will certainly test your patience. Before you press the "go" button on this you must repeat after me "I'm not going to hound the person(s) executing on this asking - where are my leads - everyday". By nature I'm not a patient guy and I hate the phrase "patience is a virtue" - but in this case it is. It's like going to the gym - every day and do the work...........

Expertise - this is NOT a part-time job for your intern. This is time consuming, takes talent, today's experience and domain expertise. If you have that in house - outstanding. But if you don't it's probably not your son/daughter during summer break or your work at home sister in law. I suggest you (yes you the owner) educate yourself on this whole new world and then start looking at ways to cost-effectively execute on this new world of marketing and sales - you'll be glad you did.

Moral to #2 - this could very well be the #1 cause of death for the IT channel going forward - educate yourself now - execute soon and go to the gym every day.

The IT Channel Revolution is staring us in the face - what's slowing it down?

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