Research claims cloud co-selling drives channel success

New research from Concur shows VARs that partner with cloud providers are more profitable

A new study released today shows channel firms that partner with a cloud service provider on a hybrid co-sell model deliver a more profitable service to customers.

The channel survey, conducted by Wakefield Research for software firm Concur, claims co-seller models drive greater value than a traditional resale model, with 77 percent of respondents seeing an increase in their profits since partnering.

The research shows that nearly nine out of 10 companies believe traditional reseller models require significantly more time and financial commitment than co-seller models.

In a blog post on the findings, Sachin Vora, senior director of global business development at Concur, writes that speed to market for new partners is key in a dynamic technology landscape.

Vora says channel partners are expected to build capability and competency across all aspects of a customer lifecycle - marketing, pre-sales, sales, implementation, support and post-sales services.

"While this model has long term advantages, it the fast-moving cloud/SaaS space, the model limits partner's expansion and adoption of new emerging technologies," he says.

He says a hybrid co-sell model helps the channel partner "leverage their existing customer expertise without the immediate burden of investing in high cost technical and post-sales capacity."

In the survey, VARs say partnering with a cloud provider allows them to free up time for employees to focus on other tasks as well as utilise more skilled sales and marketing support than they have on staff. Plus, they avoid having to train employees on a reseller model and add more value to their customer base, according to the report.

Vora said channel firms should "build a cloud practice around a business problem."

"Business stakeholders are increasingly important decision makers in technology. As a result, channel partners should offer business solutions in the cloud rather than simply focusing on product-centric services," he said.

He also advises partners to "start with a vertical in which you have existing customers."

"Success builds success, so build around existing customers and industry expertise," Vora said. "Develop a book of business around verticals that are accelerating digital and cloud transformation."

He cites financial services, healthcare, higher education and manufacturing as sectors adopting digital and cloud solutions, noting there are "opportunities for channel partners to provide pre-sales, as well as post-sales, services around key cloud solutions."