GEC NEWS WIREAs we enter 2024, the GCC channel must shake off the lingering uncertainty that comes with watching the rest of the world struggle. We may see inflation and geopolitical unrest outside our door. But if we keep our heads and make the right moves, we can sift out opportunities and make this year a great one.
New technologies (generative AI) are afoot; hands are wringing over a surge in sophistication within the threat landscape; and the region’s regulatory bodies continue to redefine risk management. The world over, we see channel growth outpace the cybersecurity industry as a whole and the vast majority of revenue comes through partners.
Here are three trends that will shape the regional channel this year.
Partner success as a route to customer success
Successful partners go on to become champions for customer success, as shown in a report from the Association of Strategic Alliance Professionals (ASAP). It has been a long time since customer success has been treated as an abstract side-effect of engagement. Entire departments and managers have been dedicated to the concept since the turn of the century. When cloud computing took off, service-heavy offerings prompted renewed focus on customer success, leading to the emergence of customer success platforms.
Channel partners have become a huge part of the decision-making process. Cybersecurity is now so critical and skills so scarce that end customers rely heavily on the channel for implementation, integration, and testing. It is therefore inevitable that partner success managers will start to work more closely with customer success managers.
SaaS metrics as measurement of partner ROI
This year, expect to see the enhancement of channel metrics using SaaS growth metrics, so vendors can see the true impact of the channel amid a transition to the partner ecosystem. Measuring this impact will be critical in making a business case for investment in these emerging ecosystems. Vendors must get to grips with the different types of value added by the various types of partner; and traditional partner sales metrics don’t cut it. Even new metrics — partner influence, competency, and service quality, for example — do not capture the full value adds. That is why companies will look at impact through the lens of broader SaaS growth metrics such as customer lifetime value (CLTV), customer acquisition cost (CAC), and net recurring revenue (NRR).
AI as an accelerant for growth of partner ecosystems
Who in the region did not have a half dozen conversations or more last year on the topic of AI? Whether those conversations were fearful whispers or excited roars, we cannot ignore that generative AI has gripped the imagination of millions. As 2024 progresses, we will see many vendor partners incorporate AI technology into their products and platforms. The channel is how companies expand into new territories, but the localization of content brings with it a range of time- and cost-related challenges. Vendors can enable distributors, resellers, and systems integrators through platforms that leverage AI to generate sales scripts, marketing content, and learning resources in multiple languages.
Many channel technology vendors have already begun to incorporate AI into their self-service partner-enablement and partner-management platforms. This approach adds great value to the channel because partners get access to information that is specific to their market challenges. AI-generated narratives have become so advanced that they even include context-sensitive value propositions. And when exploring the addition of a new partner, we can test the joint value proposition to see if the partnership will bring value to the customer.
Beyond the horizon…
As ever, opportunities will camouflage themselves as challenges. Looking further ahead, to the end of the decade, we can see partnering evolve from a department to a business strategy. As the orchestrated partner ecosystem becomes the de-facto standard, we will see partners add value across all departments, from marketing and sales to product development and service delivery. Channel leaders must ensure that their colleagues are aware of the potential value-add so they can move as one to capitalize on the prospects.
Traditional inbound and outbound strategies are being replaced by a so-called “surround” strategy, also known as “nearbound”. This approach rests on the premise that customers are surrounded by their trusted advisors. As the more visionary businesses prioritize the partner experience, they will be ensuring that those trusted advisors are enthusiastic, knowledgeable ambassadors for the vendor’s offerings.
Before the end of the 2020s, we will see this trend accelerate as companies see what enormous impact the partner ecosystem can have on their growth, EBITDA (earnings before interest, taxes, depreciation, and amortization), and valuation. Cloud-native software vendors are leading the way, some having already created the role of Chief Partner Officer and started recruiting for it on LinkedIn. These new board-level executives will be poised to raise the profile of partnering to company strategy, and help their colleagues introduce it to their own departments.
Be of good cheer!
The region’s partner ecosystem has every reason to be upbeat about the year ahead. This is an exciting time for our teams. Traditionally the channel has been regarded as a means to an end — a path to customers. Channel leaders have thus been sidelined as expensive overheads and have taken a back seat to salespeople. But as we make this move from “the channel” to “the partner ecosystem”, partner teams will find themselves front and center. We know that all software vendors will eventually adopt the SaaS model. Who else can be relied upon to drive this transition other than channel chiefs? The Chief Partner Officer will create an ecosystem for customer success and build the team to support it. The very presence of the role in recruitment markets is proof that 2024 is the year we stop talking about an ecosystem strategy and start executing it. A thrilling wind of change is blowing. Are you prepared to overhaul your channel program and be a part of it?
