As the year 2020 gets kicked to the curb, and we usher in 2021, we collectively look into the crystal ball to figure out what may occur during this year in the IT industry.
To do this, we talked with Diane Krakora, founder of Partner Path in Silicon Valley, to make five bold predictions for 2021. Krakora is one of the most influential channel strategists in the industry. In more than two decades of work, Krakora has crafted some of the more progressive channel programs for some of the industry’s biggest names, such as Cisco, Citrix, Dell, Dropbox, Microsoft, SAP, and VMware.
Krakora, along with her colleague Jay McBain, Principal Analyst, Channels, Partnerships & Ecosystem for Forrester Research, developed these five key predictions for the IT marketplace. During the Jolera Interview Series, Krakora reveals the top 5, while providing insight on each.
McBain was a previous guest on the Jolera Interview Series, and you have to watch that video here.
5 Predictions for the 2021 IT Marketplace
1. Marketplaces will be integral.
This was a 2020 prediction for Krakora and McBain. B2C marketplaces such as Amazon, Alibaba and eBay are making moves to solidify themselves in the B2B sector. But with the onset of the COVID-19 pandemic, growth in marketplaces soared. Find out how marketplaces can add to or compete with other indirect channels.
2. Non-transacting partners will drive an ecosystem approach.
Non-transacting partners are organizations a bit unknown in the marketplace but yet are driving cloud-based technology purchases. “The old partnering models, frameworks and programs won’t fit the future constellation of partner types,” Krakora said. The reality of the situation is that these channels such as dealer networks, wholesale distribution networks, resellers, retailers, franchises will all be a significant factor in 2021. Find out how this trend is impacting the as-a-service market.
3. Methodologies will develop to influence the influencers.
This prediction stems from the trifurcation channel model of 1. non-transacting advisors or influencers before the sale, 2. transacting partners and 3. services partners that implement and integrate solutions. What this means is there will be five different partner influencers guiding a customer through their primarily digital journey, on average. The challenge here is to influence as many people as possible. And, there could be a fourth methodology in play for 2021 to go along with non-transacting, transacting and service partners.
4. Partners will be rewarded based on customer adoption.
In subscription or consumption-based business models, what are the true measures of success? Well, Krakora predicts it will be “adoption” for 2021. Similar to other subscription models, the measures of success will not be revenue or profit, Krakora predicts, but “adoption.” If you get adoption of your product, you get retention and renewal. So which partners are driving customer adoption? How do you measure and reward that adoption, will all be key questions for 2021? However, if you get adoption of your product, you get retention and renewal. Find out how to best drive customer adoption with this prediction.
5. You will know your ecosystem multiplier.
It’s time to promote your ecosystem multiplier, says Krakora. The marketplace needs to figure out every dollar of hardware, software, and services created or enriched because of the dollar of product sold. “They want to hear there is a big enough pie to make it worth their while to join your program, get certified and direct their mindshare towards your products,” she added. Expect to see about 80 percent of your future partners becoming non-transacting partners. This means you are going to have to make it worth their while, revenue-wise, to join your program, get certified and direct their mindshare towards your products.
During the interview, Krakora summed up the unforgettable year of 2020 and provided key takeaways for the channel community.
By Paolo Del Nibletto