There are many reasons for enterprise IT ISVs to consider implementing a channel sales strategy for products. In our experience the most prominent of these are:
- an ISV is supported by too few internal sales personnel, or
- a software product requires a comparatively complex installation, which is usually accomplished with some significant amount of customer-specific customization, or
- a software product (usually a commodity) is targeted to a market where customers generally work with a select set of prime vendors and have little to no motivation to change their buying preferences
Another very important reason for enterprise IT ISVs to explore the opportunity presented by a channel sales strategy stems from the distance between a software product’s typical application and the core driver of market interest.
It is worth taking a few words to explain this last notion. Consider that products designed to satisfy peripheral market needs are, necessarily, located at a distance from the core market driver. Examples of these software products on the periphery include, but are certainly not limited to, applications designed to enable wider use of specific features of the core application. These products are usually captive to the core application and intended to meet the needs of specific market niches.
If one considers Microsoft® SharePoint® as a core solution designed to address a need for enterprise content management, then a product like the Outlook to SharePoint connector offered by Colligo Networks can be seen as a means of enabling users to extract better performance from SharePoint, itself. We note that Colligo Networks’ solution provides SharePoint users with a seamless method of storing email data to document libraries, in other words the system works without any need for human intervention, thereby ensuring that a substantial proportion of documents sent by email, as well as email messages, themselves, will be correctly stored in SharePoint document libraries.
While gaining assurance that most email messaging is recorded in SharePoint document libraries may not be critically important to lots of businesses, for those businesses operating in highly regulated industries, where adhering to compliance regulations is an ongoing imperative, gaining such assurance is, in fact, very valuable, and, more often than not, worth the cost of acquiring a solution like the one offered by Colligo Networks.
In our experience, products positioned at a distance from core market drivers, which, nevertheless, can be used, like Colligo’s Outlook to SharePoint connector, to deliver a tangibly more valuable solution to users, are particularly well positioned for a channel sales strategy. After all, for a range of service providers, including businesses offering users system integration, or custom development, it makes sense to include these products in project implementation plans for the strategic role they play in ensuring that the end customer receives optimum value.
Therefore, one could argue that the task of attracting channel partners, for peripheral products correctly positioned, should be a rather easy one for sales. But, as we will show in the next post to this blog, in 2013 some other factors are at work that act as repellents, regardless of how successful a product market message may be.
© IMB Enterprises, Inc. & Ira Michael Blonder, 2012 All Rights Reserved