Modernizing the Channel Model - Part 3

As we discussed in our last installment of “Modernizing the Channel Model,” change is the overwhelming reason we must revamp the channel model.

Customer needs have changed – technology strategy has become business strategy. Technology has changed – from monolithic legacy architectures and slow application development methods to software-defined hybrid cloud architectures and agile development models. And finally, these changes have put pressure on channel margins.

So what is a red-blooded, well-meaning technology entrepreneur to do? The answer – get busy transforming your business. As legacy architectures give way to a mobile-cloud architecture that needs more compute power at the edge, cutting-edge analytics engines to handle scads of data, and deep security throughout, that will require distributors and resellers to transition their business model as well.

At a high level, here is a view of the business elements that need to change:

We are not telling you anything you don’t know. You know as revenue growth slows and margins decline on the sale of your legacy infrastructure products and services, your business cannot sustain over the long term. You know that disruptive technologies are coming to market that offer the business outcomes (data analytics, IoT, simplified management, pervasive security) that your current vendors can’t provide. You know you must embrace innovation to remain relevant with your customers and provide the solutions they are demanding.

But there is a big difference between knowing what you have to do, and actually doing it. It is time to huddle with the management team, revise and reconnect to your vision, understand the financial implications of your future, set strategy and establish an execution plan to transition your business into the future. Your employees, your partners, and most importantly, your customers deserve it.

If you need help getting started, contact Vation Ventures. We can help you understand your current state, identify your future state and plot a viable roadmap to get there. Best of luck on your journey!


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