Most vendors have reasonable channel strategies and the resources to support their strategy. In the end, it will come down execution at all levels.
We are entering a new phase of what is currently called Unified Communications (note I said "currently"--expect changes down the road). The next phase of UC will include analytics, artificial intelligence, machine learning, etc. The success of any vendor in this next phase will depend on their strategy, resources (human and financial), and ability to execute on their strategy.
In the early days of UC, the strategy for many vendors was simply survival. They had to sell IP-PBXs to survive while they developed their UC Strategy and product portfolio.
Today, all of the surviving UC platform providers, including Alcatel-Lucent, Avaya, Cisco, IBM, Microsoft, Mitel, NEC, ShoreTel, Unify, and others, have good basic UC offerings, with easy-to-use click-to-communicate features. Some have begun to integrate communications into business processes (CEBP), although with minor exceptions, none of the major vendors have made any significant inroads into this area.
In this next phase, the channel will play a more important role in vendor success, requiring enhanced marketing efforts aimed at the channel. The channel is going through major change as they shift from selling equipment to selling services.
For example, the UC Summit survey found that the average channel partner's reoccurring revenue today is 20% or less, and is expected to increase to over 45% in the next 24-36 months. While some vendors have actively embraced changes in the channel, others are still trying to come to terms with their strategy. Survival in this next stage will require the right combination of resources to move forward, and an understanding of where the market is headed.
Unfortunately, some vendors' haven't done a good job in terms of marketing and are losing favor with their channel partners. In fact, according to our research, 73% of the channel partners attending this year's UC Summit in April are looking for a new call control vendor. This means that vendors need to work harder to retain current partners and attract new ones.
To date, many vendors have been falling behind when it comes to marketing and providing assistance to their channel partners. For example, when discussing their primary vendor, one major channel partner noted, "Their arrogance has caught up with them and we are having a more difficult time competing in the market. They assume we can sell on their brand with very little marketing support."
A recent survey by a major supplier house showed that the channel partners find the collateral materials from many of their vendors to be worthless, with one respondent noting, "They are confusing to our people, so why would we share it with prospects?"
Most vendors have reasonable channel strategies and the resources to support their strategy. In the end, it will come down execution at all levels. Enterprises will spend billions with major UC vendors over the next few years. It is important for channel partners to pick the vendors that have the right vision and will be around to deliver and support that vision.
If you're a channel partner, I hope you'll attend the UCStrategies UC Summit on April 27-30 at Estancia La Jolla Resort and Spa in La Jolla, CA. This UC channel-focused event will feature various sessions presented by the UCStrategies Experts, including a UC Market update on how well the vendors are currently executing, a special session by Dr. Joseph Williams on how the vendor model needs to change, and technology update sessions to help you develop your strategy for the future.
For the vendor sponsors at the event, there'll be a session presenting feedback from the attendees on what the vendors need to do to help channel partners be more successful, as well as small focus sessions with channel partners and end-user consultants. I hope to see you there.