Intelligent Tech Channels Issue 20 | Page 16

EDITOR’S COMMENT T he channel has been under pressure in 2018 as a result of slow economic growth and businesses consolidating their assets, reducing their costs and in some instances going directly to suppliers. But what does 2019 have in store for channel partners, where are the opportunities and how can they increase their margins? There is no doubt that channel partners must evolve and adopt new strategies to remain relevant in an increasingly competitive market place. The channel’s evolution has to come from within the sales teams and involves a shift from product to solutions selling. Channel partners who continue to drop technology at customers will increasingly find their margins declining and There is no doubt that channel partners must evolve and adopt new strategies to remain relevant in an increasingly competitive market place. 16 CRAIG FREER, EXECUTIVE HEAD: CLOUD AT VOX TRENDS THE CHANNEL IS LIKELY TO SEE IN 2019 r, E xe cu ti ve Hea d: Clo ud at Vox have customers looking elsewhere for value-based service offerings. The evolution is about being close to customers, having the ability to unpack opportunities with them, training and investing in people and making sure customer service is at the heart of everything you do. The old model of taking a product and dropping it is dying. Channel partners who still subscribe to this way of servicing customers are going to lose their relevance very quickly. However, were they in a position where they were adding significant value, helping to define strategy and selling a solution rather than a product, they would be flourishing. Evolving from a box dropper to a trusted adviser means that you are entrenched in your customers’ businesses, your lifetime value is higher and you are defining your customers’ IT strategies. The opportunity in this approach is the ability to build wealth and long-lasting customer relationships. We are certainly driving this strategy in our business and any person in sales worth his or her salt has to evolve into a trusted adviser. What are the opportunities that 2019 holds? Microsoft Azure’s investment in the country is a game changer for the channel. The value proposition of Office 365 and Exchange Online is top of mind for businesses big and small, and discussions are being had with them regarding their rapid adoption of cloud applications. Resellers will differentiate themselves in terms of the value they bring to customers, such as their ability to consult, apply a level of managed services, their capability to drive effective migrations to Azure and the investments they make in the development of their people. A channel business is no different to any other business; if you are not delivering value you are going to be left behind. ˜