March 20, 2008
SaaS & Channel Make Strides
Indirect delivery channels and SaaS business applications continue a slow, cautious and somewhat awkward relationship. For more than two decades, indirect channels, primarily in the form of value added resellers (VARs), have been the most utilized resources for the local delivery and support of CRM and ERP business software systems to SMB and middle market organizations worldwide. VARs posses a powerful combination of local presence, strong domain knowledge and trusted business advisor relationship with their clients. Their blend of business process knowledge, software application expertise and technical skills provide the type of expert guidance to reduce implementation risk and maximize business systems ROI.
But something changed between software publishers and VARs when SaaS came along at the turn of the century. VAR programs which had previously matured and were quite comparable whether from Microsoft, Sage or SAP, were suddenly scaled back by the new SaaS providers. Common implementation (and billable) activities such as server platform setup and software installation were no longer necessary with SaaS solutions. And it seemed to some that local presence took on a lesser value with business systems delivered over the Internet. As stated in the article, What's a VAR To Do With SaaS, many VAR's weren't sure if SaaS solutions represented a competitive threat or a new business building opportunity.
The reality is that clients continue to benefit with onsite and local resources who can map their objectives within the constructs of the software and provide expert guidance. I can't speak for other SaaS publishers but I can firmly say that Aplicor greatly values relationships with any client advisor or business partner who adds value to our mutual clients business information system.
I'm encouraged that SaaS companies and indirect channel members are clearly starting to come together in bigger numbers. Each year IDC delivers their top predictions for software applications and channel trends. This year the analyst firm predicts the emergence of two new types of SaaS business partners. The first type of Business Domain Specialists are similar to regional system integrators which focus on business process optimization, industry specific knowledge and strong technical skills to help clients cut through complex business processes.
The second type of Business Service Providers are akin to master customers. These newer business partners will acquire their vertical expertise from first hand experience and then seek to leverage it in an advisory role for others. IDC cites an example as a law firm that figures out how to optimize SaaS for their own purposes and then starts a business to aid other law firms in making the same accomplishments.
Another view point which echoes increased cooperation between SaaS publishers and the channel is Axel Schultze's new book "Channel Excellence". Schultze uses the term 'SaaS catalyst' to describe how channel members will help customers implement systems and adjust their business processes. According to Schultze, SaaS catalysts will find their business opportunities in deployment services, configuration services, system integration, business process alignment, reporting and analytics services and customer support.
Regardless of any new channel partner types or names, the fundamental fact that clients are best served with knowledgeable, local, expert resources provides the basis for SaaS publishers and channel partners to find common ground and cooperation for their mutual customers.
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Posted by Chuck Schaeffer on March 20, 2008 in SaaS
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READER COMMENTS
VARs at Aplicor?
Does Aplicor have VAR business partners?
Posted by Martin Hammerback on March 25, 2008
Absolutely
We do and we're very proud of these relationships and the value they deliver to our mutual clients. I've personally been involved in indirect channels for the resale, implementation, customization and support of CRM and ERP business software systems for two decades now so I really appreciate the role our business partners perform so well. Having been a part of channels for a while, I also recognize that developing different partner programs is key to leveraging each partner's highest and best skills and value add. You can check out our Alliance Partner Programs on our web site if you want to learn more.
Posted by Chuck Schaeffer on March 25, 2008
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