EXPERT SPEAK
Increased vertical focus has been happening for a while at the channel ’ s cutting edge . Channel organisations are restructuring to create vertically focused customer-facing sales and solutions organisations . However , is it as black and white as this ? What are the main obstacles partners are facing in creating the crossover between industry and technology ?
Thanks to the rise in third-platform technology and a dramatically shifting customer landscape , partners are focusing more and more on their vertical offerings and expertise .
Research commissioned by Red Hat last year underlines this , with over half of the resellers , VARs , SIs , MSPs , CSPs , ISVs and consultants surveyed in the UK , French and German channels having extended their product and service portfolio towards specific vertical industries in the past 12 months .
The key driver for partners , is that customers are increasingly looking for guidance and solutions from the channel to help facilitate their Digital Transformation and to achieve a holistic , cross-sector business approach .
These new demands are spelling out a clear message for partners and it is this : like those who sat on the sidelines with Digital Transformation , those not investing in vertical specialisms will soon find themselves missing out on valuable business opportunities , plus risk exposing their lack of cross-sector services to existing clients .
Vendors similarly will prioritise collaboration with vertically driven partners in order to increase profitability and expand their own portfolio ; with partner programmes and certifications weighted heavily towards nurturing this level of industry depth . So what can they do to not only weather this , but increase business prosperity and opportunity ?
Know the industry lingo
The challenges associated with creating vertical specialisms very much depend on
Frank Basinski , Director Partner Programmes and Enablement EMEA at Red Hat
It is important for partners to concentrate on providing a solution focused approach rather than a product one .
the starting point of the partner . System Integrators are already ahead of the playing field , while others are at varying points in the journey .
That being said most partners have figured out that if they specialise in vertical ( or horizontal ) solutions they will have a significant advantage and avoid a business model only set up to compete on price .
A vertical approach allows partners to be more relevant and form stronger relationships with their customers . Peaking the language of the customer shows a deeper understanding tailored to the market their end customers are operating in .
Partners immediately step up from being an infrastructure provider to becoming a trusted advisor , a key differentiator at a time when competition is only intensifying .
Primarily , we are seeing this trend play out across our partners ’ sales infrastructure . This allows partners to build a valuable proposition and unique IP , differentiating themselves from the competition . However , it is important for partners to concentrate on providing a solution focused approach rather than a product one .
Leverage third platform technologies
In its report , IDC also predicts that harmonious to the adoption of vertical specialisms in the channel will be the increased investment in third platform technology , with new ecosystems and alliances emerging around cloud , social , mobile and Big Data .
Take advantage of repeatable solutions
To invest in their industry expertise , while carving out a USP against their competitors , repeatable solutions are just one potential strategy partners can look at .
Repeatable solutions mean identifying an industry specific issue , building out a solution to tackle this and recognising that this solution can offer the same value proposition for other customers in that space and can be replicated quickly , efficiently and cost-effectively . At Red Hat , we have seen some of our partners utilise this strategy to great effect .
The fact is that vertical specialisation is happening naturally and Digital Transformation will only intensify this . At Red Hat , we continue to encourage all of our partners to invest in building up their industry expertise or to take a close look at what might already exist within their organisations and bundle this up into a vertical offering .
Ultimately , following a vertical specific approach , supported with tailored expertise and solutions , will ensure that partners fully understand the challenges end-users come up against on a regular basis , which can be the key to unlocking new business opportunities and keeping existing clients satisfied . •
INTELLIGENT TECH CHANNELS Issue 18 53