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Two-thirds of all Software Revenue Worldwide is Generated or Influenced by Partnerships, Finds IDC

  • 06 September, 2004 15:13

<p>NORTH SYDNEY, September 6th, 2004 – According to IDC channel research, two-thirds of all software revenue worldwide is generated or influenced by partnerships and this percentage will reach 70% before 2010.</p>
<p>Software vendors worldwide spent a total of USD$5 billion on partner programs in 2003 - generating revenue of more than 20 times their investment.</p>
<p>IDC channel research reveals that software vendors will increase expenditure on channel programs over the next five years as the result of a number of key trends in the industry:</p>
<p>* Increased focus on the small and medium-sized business (SMB) market. This market is typically "owned" by partners and is viewed as the Holy Grail for revenue expansion, both in product and services sales.</p>
<p>* Vendors are revising old, static partner classification systems to more modular and individualistic identities. In this new model, partners determine their own place in a program based on their specific business requirements.</p>
<p>* Top tier partners benefit the most from channel program investment</p>
<p>* Increasingly, software vendors are much less focused on volume resellers and are putting investments and resources around meeting customer business issues through specific solutions that are driven by Value Added Resellers (VARs), Independent Software Vendors (ISVs) and regional/national Systems Integration (SI) consultants.</p>
<p>* VARs ISVs and SIs are becoming much more dexterous in their ability to play roles outside of their core business functions. They act as resellers, influencers, and service providers, based on the situation. And they do this among all sizes of accounts in both general business markets and vertical industry segments.</p>
<p>* High margin incentives from vendors will continue to allow these partners, in particular VARs, to continue playing the role as one-stop-shop for the guidance, sale, implementation and support of a particular solution.</p>
<p>* Vendors should construct and manage their partner programs to take advantage of these trends and generate the maximum return for their partnership investment</p>
<p>Following these research findings, IDC Australia is running a new two-day High Performance Channel and Partnering Workshop in Sydney on the 8th-9th September. This workshop delivers practical guidance for attendees to understand the following key areas of implementing and managing a successful channel and partnership strategy:</p>
<p>* Channel and Partnership Best Practices
* Moving to the Next Level Once You Already Have a Partnership/Channel Strategy
* Strategy of Partnership Coverage in the Mid-market Space
* Managing Direct and Indirect Conflict
* Capitalising on Networking Opportunities</p>
<p>For full details including the agenda, speaker biographies and registration form go to http://www.idc.com.au/events/channelworkshop/ or for further information, please contact Belinda Johnson on phone 02-9925-2236 or email bjohnson@idc.com</p>
<p>Source: IDC 2003-2004
Architecting Partner Programs for Success #31612
Channel Program Investment 2004-2008 Forecast #31216
Worldwide Strategic Alliance Investment 2004-2008 Forecast # 31250
Worldwide Strategic Alliance Performance 2004-2008 Forecast # 31236</p>

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