Techaisle Blog

Techaisle’s survey of 2115 partners shows that while many VARs offer managed services to their customers, only a small percentage successfully achieve consistent growth and profitability. In contrast, MSPs have been more successful in their managed services business model and have also begun to achieve success in the cloud. MSPs are well aligned with the business requirements associated with cloud sales. They can act as a logical extension to partner activities by providing discrete services that can be delivered efficiently. However, unique business requirements and partnering practices associated with cloud suppliers have proved challenging for MSPs.

Techaisle data shows that 65% of VARs offer managed services to their customers. Still, only 50%, less than one-third of all VARs, successfully achieve consistent growth and profitability within managed services. The data is similar to 2018. Conversely, 71% of MSPs have succeeded in their managed services business model, and 29% are still striving to achieve profitability and success. Unlike the last several years, MSPs have begun to achieve success in the cloud. 89% of MSPs currently offer cloud, and 72% have achieved cloud success. It is two-thirds of all MSPs, up from less than half in 2018.

IT adoption has become more diffused. The explosive growth in non-IT management control over IT decisions, which changes the buying point and jeopardizes the value of the channel’s IT relationships, is the change that signals the dawning of the inflection point. The IT channel is changing permanently and in ways entirely different from what we’ve seen in the past. In the same way that “cloud” refers to an extensive range of very different IT models and deployments, “the channel” is becoming a generic phrase that describes a set of business approaches that is increasingly specialized and fragmented. Techaisle’s in-depth channel partner and ecosystem research show nine key trends.

Channel partners are being challenged in new ways.

Hybrid cloud is non-optional, security is a priority, automation is critical, and AI platform adoption is when not if. Cloud automation, hybrid cloud orchestration, and cloud cost management are imposing a daunting challenge on the channel. As the cloud adoption landscape continues to shift, each IT supplier has been evaluating and evolving its partner program to drive sales and profitability for its partners. IBM has been working on developing its program since May 2020, when it introduced Build, Sell, and Service tracks. However, the evolution took on urgency after Arvind Krishna, Chairman, and CEO, of IBM, declared the ecosystem as one of the company's key priorities. As a result, IBM has increased its specialized resources by 50 percent and technical resources by 30 percent to support the partner ecosystem. Recently, IBM announced its new program called Partner Plus. IBM PartnerWorld transitioned to IBM Partner Plus experience on January 4, 2023, with the new incentive program taking effect on April 1, 2023.

Enablement, empowerment, ecosystem, and experiences are the unwritten principles driving IBM Partner Plus in transforming the rules of partner engagement. Kate Woolley, General Manager of IBM Ecosystem, says, “A thriving ecosystem is critical to underpin the success of any technology company, and we believe the underpinnings of this must be an open and inclusive ecosystem. We can reach and do more through and with our ecosystem. As a result, we have put our partners at the center of IBM’s go-to-market strategy.”

Techaisle’s latest commercial segment survey research data shows that for 92% of firms, customer experience solutions and employee experience platforms are a priority. In addition, 69% of mid-market firms are already planning investments in modernizing their customer-facing and employee productivity and communications solutions. Modern communication solutions are essential for 84% of firms, driving improved customer and employee engagement. Hence, 48% of these firms are either investing in or planning to invest in Unified Communications (UC) solutions. However, data also shows no one-size-fits-all approach to business communications solutions.

Partner commitment

We are hearing from partners that Mitel is firmly committed to supporting customers wherever they are in their communications journey with flexible, future-proofed solutions. Mitel’s portfolio of flexible, modern options is available any way that customers prefer to buy them: CAPEX options; subscription options; and a complete range of private, hybrid, and on-premises deployment options. Mitel’s UC Platform MiVoice Business improves the business experience by unifying all communication and collaboration needs into a single platform, providing greater deployment flexibility and superior customer lifecycle management. In addition to MiVoice Business’s private, public cloud, and on-premises deployment options, customers can choose a subscription model. Progressive and committed Mitel reseller partners are taking note of Mitel’s approach to solving a customer’s business communication requirements throughout their communications journey.