A Transformed Enterprise IT Buyer has Transformed the Business Model of the Services Companies that Provide Support, and More

Much has been written over the last several years about the characteristics of a new enterprise IT buyer for 2013. We have written about this new buyer in earlier posts to this blog, for example in a post on the possible Obsolescence of Outside Software Sales Teams [as a result of] a Combination of Factors.

The bottom line on this new buyer is that she does almost all of the work required to research, specify, and identify likely solutions for “bleeding wounds” online before ever lifting a telephone to call on a sales organization.

Further, she is likely to be a survivor of a number of failed IT projects. We have written on this topic of failed IT projects earlier in this blog in a post titled Buyer Skepticism must be an Underlying Assumption for Enterprise IT Sales in 2012. This experience, where lots of money was expended on IT projects that failed to deliver a return on investment (ROI), as anticipated, has fed the enterprise need for so-called “portfolio management,” which amounts to an activity undertaken to ensure that, for future projects, all efforts will be made to capture as much of anticipated ROI as possible.

Our recent interactions with the services companies that do business with this new enterprise IT buyer, meaning the systems integration businesses, development shops, and other consulting and even advisory firms, indicate that they, too, have been transformed to keep up with the times, and in a manner that increases the difficulty that most ISVs will likely face should these ISVs opt to pursue channel sales strategies targeting these services businesses.

Specifically, we think that enterprise IT market demand for turnkey systems integration work is a mere shadow of earlier years. The reason for this decline in demand is that enterprise IT organizations, generally, are shouldering more of the responsibility for all of the key aspects, meaning the actual answers to “who/where/how/why” questions for all implementations of solutions for core requirements.

Enterprise IT may not provide the actual human resources required to implement core projects, but they do, with increasing frequency, specifically direct all aspects of the implementation. Therefore, in this new world, the type of products that we discussed in yesterday’s post to this blog, specifically, products on the periphery of core demand, which, nevertheless, can play an important role in an integrated solution, will likely have to look to joint marketing opportunities with vendors of core solutions if they are to capture the attention of channel partners.

In the next post in this series we will look at how this constrained atmosphere necessitates a different set of themes for marketing communications efforts for these peripheral products in search of channel partners.

Ira Michael Blonder

© IMB Enterprises, Inc. & Ira Michael Blonder, 2012 All Rights Reserved

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