CHANNEL INSIDER
Glyn Yates is Principle Consultant, GTM International. In this new monthly column for
Intelligent Tech Channels, he shares his expertise and views on the channel and partner community.
DISCLAIMER: I have walked many roads and worn many hats and, although my experience and expertise can be valuable, my outlook on the world at large is my own and does not necessarily represent that of ITC.
COVID-19 forces a
shift and a rethink of
channel expansion
Hello and welcome to the first column
in a regular contribution to Intelligent
Tech Channels, providing an inside
track to the changing landscape of the
channel and partner community, looking at
the shifting needs and priorities of the 360
channel and supply chain from the vendor
view, through to distribution to the SI/
reseller-partner and let us not forget those
who make this all happen, the customers.
I have been intrinsically involved
throughout my career working for, and
with, many major ‘players’ within this chain,
across many geographies and working
cultures, from supporting strong multibillion
dollar companies to drive new revenue
streams, to defining go-to-market strategy
and channel establishment for disruptive
start-ups entering new markets. Whether
customer facing, partner facing, alliance
facing or vendor facing, I understand and
appreciate the nuances that each element
offers and needs to oil the wheels and cogs
of the channel.
Today let us focus on how COVID-19 has
forced a shift, not only in our daily lives,
but also in the way we do business and has
been a major force behind the rethinking of
organisations’ operational infrastructure,
with thoughts focused on today’s near-term
pressures and the implications for mid- and
long-term strategies.
Let us today look at the vendor view
and especially the many disruptive vendors
for whom expansion into new markets is
critical, offering access to new customers,
more success stories and net new revenues
while impressing investor relations and
Yet we still can’t get away from
the fact that it takes some time to
establish and enable a channel for
sustainable revenues – the reason
for the hiring in the first place.
Glyn Yates, Principle Consultant, GTM International
reducing risk and reliance on narrow
market exposure.
Since COVID-19, we have seen budgets
tighten and hiring frozen, putting plans
to enter MEA on hold leading to a gap in
expected revenues and a reduced outlook.
This is all understandable as normally market
entry requires a hefty investment when
considering infrastructure, operations and,
of course, those nice salaries that often
attach themselves to top talent. An operation
with an individual contributor could be
easily budgeted at between US$500k and
US$750k year one, and you can add your own
multipliers when looking at a small team.
Quite expensive in the current climate.
Yet we still can’t get away from the fact
that it takes some time to establish and
enable a channel for sustainable revenues –
the reason for the hiring in the first place.
But, as buyer behaviour changes, and
seller behaviour needs to, then vendor
behaviour should do, and go-to-market
leaders have an opportunity not to count
the cost of delay.
With disruptive technologies and
disrupted markets, we are in disruptive
times, and there are disruptive models to
reflect this for entry to new markets. These
models do not require heavy investment,
do not carry any liability and offer flexibility
while still driving channel establishment
until a time where future headcount and
operational monies comes from regional
retained profits.
I trust this little addition will provide
some insight either today or on the future
and stays relevant just enough for you to
keep coming back. •
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