Tangible advice for channel leaders
CRN has précised the top advice from the panel
- ‘Strategize with customers not in the boardroom'
Pax8's 2022 has seen it expand in multiple markets, in the UK and the Netherlands, as well as raise $185m in a funding round led by SoftBank, putting its total valuation to $1.7bn.
The cloud distributor recently opened a new office at The Distillery in Bristol, in a 'multimillion-pound' bet that in-office work remains key to its growth.
And this strategy was, in part, derived from conversations with customers outside of the boardroom.
"A lot of the times, the danger with a lot of businesses is they strategize in the boardroom, trying to work out where markets are going, trying to do it off a spreadsheet, trying to do it off market insights, when a lot of the time, in my view, your best answer is going to come from the customer.
"Talk to them. What's happening on the ground? And what do you need, really, to try and deliver to them what services are important on the ground."
- ‘Cut out the overheads'
Phylip Morgan's final piece of advice is this: consider cutting the chaff.
"I really agree with Richard on this - cash is king. In your business right now, have a strategy to create cash. That needs to be the biggest priority for any business, globally.
"All the challenges on interest rates and all the rest is part of a global situation, So, whilst market predictions may say well, cloud spending in 2023 is going to cross $200bn. OK. That may be so but in order to access that, you need to have cash in order to get there."
So, how should partners go about increasing their cash reserves?
"Two things: number one, relentlessly reduce your expenses right now in your business.
"Have a look at those lines that you don't need. And please don't cut the marketing. That's probably the one area that you do need to have to continue to get your brand out there. Be smart, look at ways that you can reduce cash.
"And then, if you have enough, still look at how much more do you need?
"At Pax8, we've got a relationship with SoftBank where we've gone before we need the cash, to go and get access to more early. And that's my advice: consider going early to raise more cash and that way you've got a positive message that hopefully isn't one of desperation!
"Number two, reduce your costs, probably in the T and E expenses (travel and entertainment). Reduce all that down.
"You know in summary I would say for every single business, learn the lessons from COVID. The ones who survived were the ones that were well funded."
- ‘It's about creating a virtuous cycle'
"I know I've done a good job as a leader of a business, if I've left it in better shape than I've found it," said Agilitas CMO Richard Eglon.
"And yes that's about sustainability, but it's also about incremental growth and making things better. Because this is about long-term resiliency."
He added: "I think at this moment in time we're experiencing the greatest pressures we've ever had, because unlike this time around, previous recessions have been good for tech.
"In 2008, we saw technology stepping in with automation and process efficiency.
"However, the issue we've got now is that we're going into a recession without product.
"So we've got this double-edged sword, which nobody of any generation has experienced before. So, actually it's a really good point to seriously review our businesses."
For Eglon - and the other panellists - this means rethinking what ESG even means to a company.
"Sustainability is important. Diversity and inclusion are equally important…But they're not siloed.
"A sustainable, and ultimately, a resilient business will drive the right culture and that culture will drive the right talent, and this is the kind of virtuous cycle we should be looking to build and implement.
"Because if you get that right you will generate the cash that is fundamental for growth as we've all discussed. You can then invest that back into your people, attract better talent, which in turn drives more business and ensures you remain ahead of your competition."
- ‘Be open-minded and agile'
QBS Software has also had a banner 2022.
Europe's largest software delivery platform celebrated its 35th anniversary, and also stood out in the UK channel by becoming one of the first partners to achieve B Corp Certification.
Sustainability is a core culture priority for the company and tied into CEO Dave Stevinson's top advice.
"Be open-minded and be agile.
"Every week that goes by we're learning something new. And what we've tried to do is align a 30+year-old business, and move it into an inventory management business, and then move it into one that is an engaged part of the circular economy.
"So, think about, how can you reframe your business to match the future, and the current challenges, we're all facing? And that's important because not all businesses are experiencing the macroeconomic challenges in the same way."
For Stevinson this has been a lesson the company has had to embrace themselves coming out of the pandemic.
"Adapting is so important because even for us, our old proposition 18 months ago isn't relevant anymore. We've had to be proactive and really help drive our value in a transparent way.
"And I think that's what I hear when I speak to lots of other people is, it's those that are moving as quick as possible to whatever this new world is becoming, they are the ones who are going to stay relevant and generate the cash they need to invest in the right talent. And then they can give their customers, staff and give their shareholders the best value possible."
Want to learn more?
To discover more in-depth research findings around the topics we have discussed in this article please feel free to download the latest Technology Channel Confidence Index.
This research was commissioned by Agilitas with leading research firm Opinion Matters who surveyed 250 business leaders of technology businesses.
You can download the Technology Channel Research Report here.