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Two-Thirds Of ISVs Say Partners Are Vital To SaaS Success


 has released results of a Forrester Consulting commissioned study, the Technology Adoption Profile (TAP), which confirms the increasing role of the channel, especially in the emerging Software-as-a-Service (SaaS) space.

The majority (79%) of ISVs surveyed reported that their channel partner program will play a strategic role in growing SaaS revenues. In addition, 66% of respondents said that channel partners are vital to growing revenues from their SaaS products.  

However, key challenges facing channel partners, according to the study, include:

1. Evolving business models: As SaaS matures, ISVs are interested in evolving to more flexible payment options, such as usage-based billing. However, 49% of respondents said they were concerned and/or very concerned that partners would not be able to adapt to this shift.  

2. Expanding into new markets: While channel partners are a vital asset to help ISVs extend solutions to new markets worldwide, 47% of respondents said that they are ill-equipped to help channel partners market and sell to new geographies. 

3. Supporting customers directly: As many as 42% of ISVs indicated that their partners fail to take ownership of end-user relationships. Furthermore, 40% of respondents said they are concerned that channel partners aren’t servicing end customers correctly, whether it is a technical, billing or account-related issue. This lack of customer service can lead to missed up-sell opportunities, as well as decreased end-user loyalty. 

4. Renewing existing accounts: Approximately 21% of ISVs said they are satisfied with channel partner renewal rates. However, 41% of total respondents said they are dissatisfied with results. 

5. Providing account visibility: Lack of visibility surrounding sales and marketing progress has been a common point for organizations across the channel. In this case, 44% of ISVs said they don’t have instant access to channel partner performance information, especially regarding the acquisition and renewal of SaaS accounts. “Solution partners lack sophisticated account tracking and lead management tools,” the report stated, “which in turn prevents them from sharing visibility into their funnel up to the ISV vendors they support.” 

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About Alicia Fiorletta

Alicia Fiorletta is Senior Editor for Channel Marketer Report. Working closely with industry analysts and experts, Alicia reports on the latest news, technologies, case studies and trends coming to forefront in the channel marketing world. With a focus on emerging marketing strategies, including social, mobile and content for demand, Alicia hones in on new ways for organizations to market to and through their partner networks. Through her work with G3 Communications, Alicia also acts as Associate Editor for Retail TouchPoints, a digital publishing network focused on the customer-facing area of the retail industry.

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