Leaning in isn't just for the workplace.

August 21, 2018

4 Min Read
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Jon Heaps

By Jon Heaps, VP Channels, Talkdesk

The contact center is rapidly moving to the cloud, with the $7 billion industry poised to grow to almost $21 billion by 2022, MarketsandMarkets reports. In fact, cloud adoption across the board is at a “tipping point,” says Morgan Stanley’s Brian Nowak, with more than 20 percent of workloads now in the cloud.

As we all know, this presents challenges and opportunities for channel partners. That’s because new technologies always disrupt traditional ways of doing business. At the same time, the opportunities created almost always outweigh the challenges. The personal computer, while detrimental to mainframes, unleashed untold gains in workforce efficiency. Apple’s iPhone, while dealing a death knell to the (for some) beloved Blackberry, unleashed a platform for application developers to extend smartphones into almost every aspect of life. And the Uber/Amazon/Netflix beat goes on.

There’s no going back. So lean in – not against – and embrace the wide range of digital services you can offer, way beyond telecom.

By leaning into cloud technologies, channel partners not only remain competitive, they help customers drive their digital transformations and thus avoid becoming the next company disrupted into oblivion. Don’t let these three challenges stop you. In fact, here’s how you can pivot to capitalize on them.

New Decision Makers

Business leaders now influence 65 percent of software buying decisions, Forrester Research said in a recent report. Just a few years ago, only 10 percent of tech buying decisions happened outside the IT department.

“The move from on-premises to the cloud has enabled business leaders to get more involved in the technology purchase decision. Without the need to understand deep technical specifications, they can now focus directly on business objectives and outcomes,” Forrester notes.

Indeed, the cloud is all about eliminating IT stress so the organization can focus on what it does best, while (possibly) reducing costs. The top two reasons buyers selected cloud-based or browser-based call center software vs. on-premises solutions, for example, were to reduce system maintenance and management costs and to reduce IT budgets to buy and manage in-house infrastructure, a Frost & Sullivan survey indicates.

The change in who makes buying decisions presents a challenge for channel partners in that they’ve spent decades honing relationships with IT departments and CIOs. But now, line-of-business leaders will need guidance on how to build and evolve cloud-based solutions. As such, channel partners can be the go-to-source on optimizing cloud solutions.

New Revenue Flows

The rise of cloud means that enterprises might not need the installation expertise of channel partners as much as they used to. Cloud computing also spreads costs out over multiple years of revenue. With more cloud solutions, the role of the channel partner pivots from those who sell, install and maintain software to those who offer consultation and advice on how to use the software, says Stefan Utzinger, the author of “Channel Revolution.” As a an expert in support and best practices, channel partners will get paid a monthly fee that has the potential of being more than the one-time fee they previously received upfront.

The best cloud-solution providers will recognize that …

… channel partners might not be experts in every area.

The onus will be on the software provider to teach channel partners how to identify potential opportunities, and then engage subject-matter experts and sales engineers in approaching accounts. The good news for channel partners is that clients get up and running quickly, in weeks vs. months for legacy solutions. The sooner customers are up and running, the faster channel partners get paid. But do make sure you compensate your sales pros properly. 

New Customer Demands

Savvy customers no longer want generalized tech. They want highly focused solutions that enable them to discover and meet customer expectations. By offering a wide range of cloud-based options, channel partners can up-sell a legacy client base with new, easy-to-implement technology that meets the expectations of today’s consumers, and roll out the latest features as soon as they’re released. Cloud also levels the playing field by arming smaller companies with the same customer service capabilities of larger rivals.

To customize cloud solutions, or find special offerings to bring to customers, consider working with a master agent. Masters provide a broad list of leading suppliers, including back-office and project-management support, to give clients detailed information about their customers, which further enable customized solutions or special offers. Master agents also work very closely with suppliers and can supplement your technical and marketing expertise.

As always, the only thing constant about the technology landscape is that it’s constantly changing. Are you well positioned to enable the digital transformation of the industries you serve?

Jon Heaps is vice president, channels, at Talkdesk.

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