Adapting to Cloud: The Channel Models They Are a-Changin’

Tim Harmon

NetSuite, a leading SaaS ERP/CRM provider, recently announced that it is revamping its channel partner comp model: 100% on Y1 subscription revenue, and 10% thereafter. VARs have been remiss in taking up the SaaS torch, largely because most SaaS vendors haven’t provided a financial model conducive to VARs’ cash flow requirements. Per the on-premise license model, channel partners make a big portion of their nut on initial product margin, i.e., up front. But vendor SaaS economics minimize up-front remuneration and spread revenue out over a long period of time. Though it sacrifices year-one revenue, NetSuite’s 100/10 model more closely mirrors VARs’ accounting practices. 

NetSuite’s model will be the first of many SaaS channel model “experiments” that will ultimately be a shot in the arm for the SMB market in particular. Contrary to popular belief, SMBs have been slow on the uptake of SaaS (application hosting outpaces SaaS adoption by SMBs by a factor of 3-4x) ... Business applications; deployed via on-premise, SaaS, or application hosting

 ... due to the fact that VARs, in ownership of the customer trust asset, haven’t been pushing SaaS. But the financial barriers to channel partners’ SaaS advocacy are being broken down. 

Now that the path for VARs to play in the cloud is being forged, and their play along with software vendors, aggregators, and ISPs being validated, distributors and DMRs, long wedded to on-premise license models, are going to have to figure out their place in the new cloud channel order. 

What do you think? Is this one of many experiments? What is the role for distributors and DMRs in cloud computing?

My Next Chapter In B2B Marketing

Laura Ramos

Almost four years ago, I began a new journey at Forrester Research when I agreed to take on the B2B marketing research coverage and practice. The first significant research that I conducted and wrote, “B2B Marketing Needs A Makeover – Now,” looked at the challenges B2B marketers face and how they address these issues through marketing programs and technology investment.  Little did I know that “Makeover” would become the seminal piece of research in a series that extends across those four years and culminates in an upcoming report next week.

Today, it is with a mix of pride, nostalgia, excitement, and deep appreciation that I announce the next step in that B2B marketing journey, which started in 2006 here at Forrester, but extends back more than a decade earlier through various high-technology marketing positions I held prior to becoming an analyst.

At the end of March, I will leave Forrester to become the Vice President of Industry Marketing for Xerox Global Services, North America.

Very simply, I have been helping many clients face down their marketing challenges, adopt new approaches, and improve the reputation and standing of marketing at their firms for some time.  While personally rewarding in so many ways, I longed to return to my roots where I could do more practicing and less preaching. Xerox offers me this opportunity.

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Outsourced AR Isn't Making The Connection To Their Sales Enablement Value

Ellen Carney

A lot of emerging companies think they've "arrived" when they've launched their first analyst briefing "tour." Oftentimes, these start-ups have very small to no marketing function internally, instead turning to outside agencies for public relations, marketing communications, and of course, the debut to the analyst influencers. These small firms feel confident that once they've placed themselves in the hands of the seemingly capable agencies, they'll get all the ink and influence needed to execute the hockey-stick growth curve they've presented to their board and investors. The agency then scurries off, schedules a bunch of analyst briefings, and gives themselves a big pat on the back: mission accomplished! The appointed briefing time comes, the firm's show dog delivers the pitch, and then. . . the promise of a successful briefing fizzles.

Earlier this week, I had a briefing with just such a start-up. The agency dutifully sent me the slides in advance and, as analysts are inclined to do, I took a look. . . and was left wondering just what value this agency was providing to this client. Why? The slide deck, while short, did nothing to sell this company to me, the analyst. Here's the start-up's value proposition:

To this end, Company X seeks to design a system leveraging the latest technologies and utilizing a common processing engine and user interface to provide an integrated, easy-to-use, cost effective solution for financial institution.

Huh?

The start-up's strategic direction?

Our goal is to provide a product that:

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Welcome To The New Customer Intelligence Blog

Carlton Doty

Hello Customer Intelligence Pros:

In case you haven’t heard by now, Forrester just launched its new blog platform yesterday. Why bother you ask? Well, most importantly, we want to more easily allow you to follow individual analysts and streams of research that are most relevant to you. Here is what Cliff Condon, our guru of Forrester communities and blogs, has to say about the new platform. I urge you to please take a look around, and let me know what you think. Also, let me know what type of content and discussion you would like to see from the Customer Intelligence team in the near future.

Thanks,

Carl

The Data Digest: The State Of P2P File Sharing

Reineke Reitsma

This week my colleague James McQuivey published a report called 'Casual Video Piracy Kept At Bay For Now'. Forrester's Technographics research shows that online video piracy is a minority behavior. Just 7% of US online adults regularly engage in peer-to-peer (P2P) file sharing, and less than half of them use it for video files. In fact, more people have given up on P2P file sharing than currently still do it.

 

Peer to Peer filesharing uptake

Another data point in this report revealed that everyone prefers a legal alternative. Our respondents were eager to reassure us that they prefer to use legal sites for watching videos, if these would give them a convenient way to serve their video needs.

Five Highlights From HP’s Analyst Briefing This Week

Peter O'Neill

By Peter O'Neill

I spent a couple of days with HP executives this week here in Boston. As I worked there myself for 20 years (up to 2001, so I have distance as well), I’d like to comment about how their enterprise business strategy now looks. Of course, I wasn’t alone there; there were 250 of us. Those who follow my peers in Twitter may already be overloaded with multiple 140-character cuts: my impression is that the tool tends to makes them behave more like adolescent journalists than analysts. Often, they were broadcasting tweets before even noticing that a particular statement was “under NDA”. Vendors will learn to be more cautious in the future; which is not good for us analysts. Anyway, here are my highlights of the HP briefings.

HP’s Converged Infrastructure story includes the pending acquisition of 3COM

Nice to see that HP now has (servers + storage + networking) PLUS power & cooling! Now, HP has Cisco squarely within their sights with this one, dropping statements like “they’re just a $30B vendor while we spend over $50B in our supply chain”; “as soon as we can, we will replace ALL our Cisco gear with 3COM and realize 45% savings”; and “of course, all 3COM products use the same operating environment, unlike them”. 

My Take: Well, Cisco started this. They are, indeed, seriously threatened. If HP apply their financial muscle and play the pricing game, Cisco’s business and margins may well suffer. Remember, networking is the highest margin area in IT infrastructure: HP is adding it, Cisco is diluting it. But, I also think that Cisco will make other game changing moves in the next months. HP strategists should not be resting on their laurels, they should be doing scenario planning - and thinking way outside the IT infrastructure box.

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What do you think of our new blogging platform?

Harley Manning

As of 3/10 our new blogging platform is live. It offers many advantages over our older platform including our new "Recommend This Post" functionality.

But I'm not posting in order to sell it to you. I'm lots more interested in hearing what you think! Is it an improvement, more or less the same, or a step backwards? Let us know by clicking the "Add A New Comment" link below.

Introducing our new blog platform

Reineke Reitsma

It's with great pleasure that I introduce our new blogging platform to you! Please let me know your thoughts.

 

In this first post on the new platform, I'd like to introduce Cliff Condon, the project manager, who likes to share his thoughts on Forrester blogs and the new functionality with you:

  • Everyone’s welcome here.  Forrester analysts use blogs as an input into the research they produce, so having an open, ongoing dialogue with the marketplace is critical. Clients and non-clients can participate – so I encourage you to be part of the conversations on Forrester blogs.

  • We still have team blogs focused on role professionals. Our role blogs, such as the CIO blog and the Interactive Marketing blog, are a rollup of all the posts from the analysts serving that specific role professional. By following a role team blog, you can participate in all the conversational threads affecting a role.

  • And now we’ve added analyst blogs as well.  If you prefer to engage directly with your favorite analyst, you can. Look on the right-hand rail of the team blog and you’ll see a list of the analyst blogs.  Just click on their name to go to their blog.  Or type their name into “Search”.  An analyst blog is a place for the analyst to get reaction to their ideas and connect with others shaping the marketplace.  You’ll find the blogs to be personal in tone and approach. 

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Forrester's new Blog Network

Carrie Johnson

 

Our new blog network has gone live! This is so exciting and will enhance the way that readers can interact with our analysts.  Here’s what Cliff Condon, the project manager, has to say about it:

 

Hey everyone.  Here it is – Forrester’s new blog network. We made some change to improve the experience for readers and to encourage more analysts to blog. Feel free to poke around and let me know what you think.

 

There are a few things I’d like to point out to you:

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Welcome to the new blog network

Cliff Condon

Hey everyone.  Here it is – Forrester’s new blog network. We made some changes to improve the experience for readers and to encourage more analysts to blog. Feel free to poke around and let me know what you think.

There are a few things I’d like to point out to you:
 

  • Everyone’s welcome here.  Forrester analysts use blogs as an input into the research they produce, so having an open, ongoing dialogue with the marketplace is critical. Clients and non-clients can participate – so I encourage you to be part of the conversations on Forrester blogs.
  • We still have team blogs focused on role professionals. Our role blogs, such as the CIO blog and the Interactive Marketing blog, are a rollup of all the posts from the analysts serving that specific role professional. By following a role team blog, you can participate in all the conversational threads affecting a role.
  • And now we’ve added analyst blogs as well.  If you prefer to engage directly with your favorite analyst, you can. Look on the right-hand rail of the team blog and you’ll see a list of the analyst blogs.  Just click on their name to go to their blog.  Or type their name into “Search”.  An analyst blog is a place for the analyst to get reaction to their ideas and connect with others shaping the marketplace.  You’ll find the blogs to be personal in tone and approach. 
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