The Channel is Changing Fast — Partner Programmes Must Evolve Quicker

The pace of technological change is relentless, and as it accelerates, we are warned it will never be as slow as it is right now. However, another thing that has also changed, and also appears to be accelerating, is technology variability.

The current market trends are that technological solutions increasingly comprise more and more diverse technologies, carefully combined to produce bespoke solutions. Artificial intelligence (AI) and machine learning (ML), are now often baked in layers through operational technology (OT), built on industrial internet of things (IIoT) networks with multiple layers of blended connectivity sending data to edge site processing where local analytics are applied before critical intelligence is relayed to central data centres for further processing. These complex stacks are often bespoke to individual industries, verticals, and increasingly customers, tailored for specific needs, markets or philosophies.

In this environment, channel partners have moved away from being technical specialists in specific areas towards being broader solution providers and latterly, technology partners. They are first consultants to their customers, as well as being system integrators, managed service providers (MSP), software developers, and hardware sales and support providers.

These drivers have meant that channel partners have adapted their business models to be more comprehensive, more consultative, and offering a broader value proposition.

To support these trends, vendors too have had to adapt their offerings and their channel programmes, reflecting the longer, deeper, engagement cycles and bespoke solutions of blended technologies and implementations. ?New channel programmes must provide profitability within these new environments.

One strong element of this is an adaptive approach for programmes — one size does not fit all. Vendors need programmes that support partners in the competencies they have and the markets they serve, but also in creating the partnerships they need to build out their offerings. In the past, this was often accomplished by mergers and acquisitions to add competencies and expertise. However, recent research from Canalys in the APAC region found that 87% of channel partners collaborated with at least one channel partner on customer projects.

"Sparking growth will take more than just being good on your own – it will need collaboration with others in the channel ecosystem. Leveraging expertise from different players in the channel ecosystem will be key to growing business and could act as a way to manage the prevalent lack of resources and resolve the specific issues the channel is facing," said Sheena Wee, Canalys Analyst, Channels.

Channel programmes need to reflect and support these partnerships, ensuring that partners can grow together to meet evolving needs.

As partners consult with customers more, and more deeply, to understand customer needs, they have ever greater need of market intelligence to inform the solutions they provide. Understanding technological developments, market dynamics and region specifics, can all add to the strength of solutions provided. Vendor channel programmes need to have access to research, insights and commentary to contextualise developments and interpret impacts.

This extends beyond presenting research and resources. Training, education and materials are also key. Skills shortages are affecting many markets and so the option to upskill and cross-skill staff is vital. Vendor training programmes can go a long way towards ensuring that the right people have the right knowledge to not just work with customers, but to help them horizon scan and anticipate needs, match technologies and build those bespoke solutions that will confer competitive advantage.

Channel partner programmes that are still focused on hardware sales will not support those partners who are moving to more OpEx models, based on longer relationships and service provision. Partner programmes need to evolve to reflect not just market influences, but how partners need to operate. Large merger and acquisition moves are no longer seen as the only option to build out offerings. Partnerships with multiple entities within a vendor ecosystem are now not just popular but widespread and succeeding.

Recent Schneider Electric research among its own channel partners found that ease of use within partner programmes was key to succeeding and making the most from the facilities. While profitability remains paramount for many partners in considering a channel programme, ease of use, fitness for purpose and support of specific needs are now key differentiators too.

It is also worth mentioning that all of this is happening in the context of a world that is moving towards reduction of emissions, and ever greater circularity. There is not just a duty for channel partners, vendors and the ecosystem as a whole, there is also opportunity.

A Canalys Quick Poll found that up to a third of channel partners have still not thought about their environmental, social and governance (ESG) goals. The lack of guidelines and standardisation has slowed adoption of circular practices, notably among small and mid-market partners as they don’t have the resources to deploy refurbishment operations at scale, said Nicolas Otayek, technology analyst, Canalys.

This is despite a recent survey by Canalys that found 40% of channel partners expect to generate revenue from sustainability solutions in 2022, which was set to increase to 60% of polled partners, who expect to have their strategies set by the end of 2022.

This, said the analyst, will be dependent upon multivendor cooperation to bring clearly identified and agreed standards to enable clear reporting and measurement of sustainability progress across the industry, an area in which Schneider Electric has done specific work with white paper 67, providing a guide to environmental sustainability metrics for data centres.

This has seen full expression in our?Green Premium programme?that has been recently updated. It stands for our commitment to deliver superior sustainable performance to customers.?It has been upgraded with recognised environmental claims and extended to cover all offers including products, services, and solutions.

The programme delivers strong value propositions through resource, circular and well-being performance. By collaborating with third party organisations, we can support customers to more easily meet their sustainability goals, with resource efficiency throughout asset lifecycles; improved circularity through IoT-enabled solutions facilitating optimised upgrade, repair, retrofit and remanufacture services; and going beyond compliance with material substitution of certain materials and substances from products.?

Schneider Electric has comprehensively revamped its partner programme to provide the critical support needed to grow competencies, add solution offerings, retain customers, and expand into new markets. Access to competitive market research, sales tools, software and services offerings, discounts, and much more for qualifying solution providers, reflect and anticipate these market drivers.

All of this is backed up by the decades of experience in carefully evolving the channel partner ecosystem, working with all parties to ensure a supportive, collaborative way of working. Supports, from training courses to the Design Portal, make it easier for partners to create the solutions clients need. With a dedicated support manager and access to customer care advisors, partners can be confident in the availability of every resource to succeed.

As the technology channel changes to meet evolving needs driven by longer, deeper relationships with clients and fast-paced technological change, channel programmes must evolve to meet those needs, while allowing individual partners to innovate and drive competitiveness. Our programme reflects those needs and drivers, providing support for all and opportunities to excel.

Explore the evolved mySchneider IT Partner Program to see how it can help future-proof your IT solution provider business.