With all the hype surrounding social media, it’s easy to overlook the impact of the Software as a Service (SaaS) model that enabled the social media phenomenon. (Certainly, fewer people would be using Twitter if they had to purchase it and load it onto their computer.) And while 2010 is going to be the year of social media enablement for resellers, the next decade is going to be about adapting business models and channel programs to support the sale of services rather than products.
There is little debate that a significant percentage of channel revenue is going to shift to the SaaS delivery model (potentially through online communities). The only real discussion is about how fast this will happen and how high the SaaS revenue percentage will be in 2020. Recently, the ISV World Conference in Germany asked me to make a presentation on this subject. So we pulled out some cameras and shot three videos about the SaaS market to be shown during the Conference. Joining me is SaaS expert Ken Boasso.
SaaS Market Size Video on YouTube
SaaS Market Segments Video on YouTube
SaaS Sales Success Video on YouTube
If you don’t have time to watch all the videos (about 30 minutes), let me net it out for you. SaaS is already big and its going to get bigger. A different channel business model is required, one that can deal with thousands of new users/subscriptions a month. Social Media is a key enabler for SaaS because it enables low cost and effective marketing and sales capabilities. The resellers of today are not ready for any of this and will be looking to their vendors for leadership. Some traditional vendors are going to push their resellers into bankruptcy by pressuring them to sell products rather than Cloud services. The old channel is going to have to make some tough choices very soon. A new channel is going to emerge to specialize in selling Cloud services and not hardware or software products.
The biggest issue in marketing is trying to understand the new channel for selling SaaS (Cloud) services. IMHO, this issue is more important than social media, but we can’t get around to addressing it until channel executives are familiar enough with SaaS that they can make good planning assumptions. And that is why social media is critical. It gives everyone “hands-on” experience and a glimpse of how channels of the future are going to look.
Social Media changes (and levels) the playing field for marketing, communications, and customer intimacy. New strategies for reseller success are needed. SaaS, however, changes the entire game and a new league will have to be created. Is your channel program ready to play?
SaaS Trumps Social Media
Posted by
Channels of the Future
on Friday, January 29, 2010
Labels:
SaaS,
Social Media
0
comments
What Social Media Benefits Matter Most?
Posted by
Channels of the Future
on Monday, January 25, 2010
Labels:
Channels of the Future,
Research
1 comments
Everyone is flocking to social media sites because there are a lot of benefits. Communication is faster, it’s easier to get messages through corporate firewalls, and sometimes you can get an almost immediate reaction to a critical issue from a vendor, reseller, reference, or prospect . Plus, customers are using social media a lot, which allows businesses to build customer relationships quickly and with a lot of important background information. Social Media has become so important that new hardware tools, like smart phones, are being sold to provide easier access to popular sites.
Even with all these benefits, some partner managers are still lagging behind in using social media to connect with their resellers. Some channel executives are not yet providing the leadership required to move channel partners towards using these new tools effectively. However, channel executives are smart people and they are beginning to see the benefits of using social media for marketing, support, and even sales. They will eventually embrace social media and using it as a business tool, just like everyone else.
If you were presenting to channel executives, what social media benefit would you stress to convince them? What do they need to understand before funding significant social media initiatives with channel partners. Maybe we can move them along a little faster. Take the poll at the left and/or leave a comment.
Even with all these benefits, some partner managers are still lagging behind in using social media to connect with their resellers. Some channel executives are not yet providing the leadership required to move channel partners towards using these new tools effectively. However, channel executives are smart people and they are beginning to see the benefits of using social media for marketing, support, and even sales. They will eventually embrace social media and using it as a business tool, just like everyone else.
If you were presenting to channel executives, what social media benefit would you stress to convince them? What do they need to understand before funding significant social media initiatives with channel partners. Maybe we can move them along a little faster. Take the poll at the left and/or leave a comment.
Invest in the Future –Notes from the Qwest Partner Conference
Posted by
Channels of the Future
on Friday, January 15, 2010
Labels:
Partner,
Qwest,
Social Media
0
comments
Qwest is an interesting company. On the verge of obliteration a few years ago, the folks in Denver are undergoing a remarkable rejuvenation, much to the delight of their channel partners. At the Q.Marketplace Conference this week, management announced solid 2009 results and thanked partners for doing a great job of retaining customers, even as the economy sagged. Qwest then committed to “Perfect What’s Driving Growth” and “Invest in the Future” by placing a big bet on the rising popularity of Cloud Computing. 2010 looks like it’s going to be a good year for them and, clearly, the comments were well-received by the partners.
My Breakout Session on Social Media was standing room only. A lot of Qwest Partners think Social Media might be a way to help them better connect with customers, but don’t know much about how it all works. So they filled the room and crowded the doorways to hear how other companies are doing it.
When asked about their Social Media experience, almost everyone claimed to have a LinkedIn Profile and about a third had Twitter accounts. But only a very few (maybe one person) said that they had connected with Qwest resources via Social Media. I showed them some screen shots of Qwest Blogs and Tweets. Many were surprised that “Corporate Qwest” was already blogging and Twittering away without involving partners. They were even more surprised to hear how Cisco and others were successfully engaging customers through social media already.
During the Breakout Session, we only had an hour to discuss a complicated subject and predictably we did not get to go into much detail. But the advice I gave these resellers was the same as I give every company just coming into Social Media. Don’t try to be everyplace and do everything. Pick the places where your customers “hang out” (if you don’t know, ask them which sites they visit.) Listen to what they are saying online and then respond accordingly.
After the session, a few Qwest partners found me near the coffee table and wanted to talk about 2010. They were already exploring Social Media and early attempts at finding or helping customers had been promising. They were eager to build on their Social Media successes. But they were also worried about making mistakes and wasting time. Unfortunately, Qwest was not providing any assistance in helping them figure it out.
My advice, pick a company goal and see if Social Media can help you achieve that goal. For example, if you want to increase the size of your customer base in 2010, spend time learning how to use a business site to get new introductions. If you want to increase your market awareness, incorporate Facebook or Twitter into your plan. If hiring certified technical people is important, find them in the appropriate on-line communities. In other words, have specific objectives: Social Media is the means, not the end.
Then let Qwest know social media is important. Vendors can’t have robust channel programs without paying attention to partner needs, and Qwest (like most vendors) is working hard to make partners successful. Since Social Media is an important enabler of future success, it’s a no-brainer for vendors to help.
My Breakout Session on Social Media was standing room only. A lot of Qwest Partners think Social Media might be a way to help them better connect with customers, but don’t know much about how it all works. So they filled the room and crowded the doorways to hear how other companies are doing it.
When asked about their Social Media experience, almost everyone claimed to have a LinkedIn Profile and about a third had Twitter accounts. But only a very few (maybe one person) said that they had connected with Qwest resources via Social Media. I showed them some screen shots of Qwest Blogs and Tweets. Many were surprised that “Corporate Qwest” was already blogging and Twittering away without involving partners. They were even more surprised to hear how Cisco and others were successfully engaging customers through social media already.
During the Breakout Session, we only had an hour to discuss a complicated subject and predictably we did not get to go into much detail. But the advice I gave these resellers was the same as I give every company just coming into Social Media. Don’t try to be everyplace and do everything. Pick the places where your customers “hang out” (if you don’t know, ask them which sites they visit.) Listen to what they are saying online and then respond accordingly.
After the session, a few Qwest partners found me near the coffee table and wanted to talk about 2010. They were already exploring Social Media and early attempts at finding or helping customers had been promising. They were eager to build on their Social Media successes. But they were also worried about making mistakes and wasting time. Unfortunately, Qwest was not providing any assistance in helping them figure it out.
My advice, pick a company goal and see if Social Media can help you achieve that goal. For example, if you want to increase the size of your customer base in 2010, spend time learning how to use a business site to get new introductions. If you want to increase your market awareness, incorporate Facebook or Twitter into your plan. If hiring certified technical people is important, find them in the appropriate on-line communities. In other words, have specific objectives: Social Media is the means, not the end.
Then let Qwest know social media is important. Vendors can’t have robust channel programs without paying attention to partner needs, and Qwest (like most vendors) is working hard to make partners successful. Since Social Media is an important enabler of future success, it’s a no-brainer for vendors to help.
