HOW TECHNOLOGY PRACTICES ARE REDEFINING PARTNER PROGRAMS
Ten years ago we saw a revolution in partner program design, as technology vendors began to value partner skills as much as revenue. Today a new shift is taking place, as vendors, distributors and solution providers build their own Technology Practices. Here we explore the impact of this.
CERTIFICATION AND COMPETENCY
We can plot the changes that have taken place using two words: ‘certification’ and ‘competency’.
Large vendor programs like Microsoft and Cisco first introduced ‘skills certifications’. These rewarded partners for the capability of their employees. Individuals working for channel partners could train and qualify as specialist in the technical or sales aspects of certain technology solutions. Partners meeting defined criteria for numbers of trained staff were ‘certified’ as specialist, and were recognised and rewarded by the vendor in the Partner Program.
The value of vendor certifications increased, as partners sought out individuals with appropriate skills. A qualified Cisco Certified Networking Specialist, for example, would be in demand.
In recent years we have seen a clear shift towards ‘partner competency’ in large vendor programs. This is not just re-naming ‘skills certification’, it indicates a much broader approach to assessing partner capability beyond simply employment of qualified staff. Competency is achieved by demonstrating customer experience and expertise in a particular market sector.
In the Salesforce Partner Program, for example, partners are evaluated not only based on the number of Certified Developers and Consultants that the partner has, but also based on the partner’s ‘domain expertise’. Domain expertise is measured using customer-validated case studies demonstrating experience in a specific market sector.
See our analysis of the Salesforce Partner Program here.
‘Competency’ is much more than simple ‘training certification’. ‘Domain expertise’ criteria are built into most modern large vendor programs, like HP Amplify and the Microsoft Partner Network.
See our analysis of HP Amplify here
and the Microsoft Partner Network here.
THE RISE OF PRACTICES
A ‘practice’ is in turn more than just a combination of ‘skills certification’ and ‘domain expertise’. A practice is a defined team of people working together as a sub-unit within the business, who are experts on all aspects of a particular market. They understand customer needs, they offer technical and support excellence, and they provide value added services relevant to the market they focus on.
Practices can be defined around vertical industries or technologies. So for example most large integrators and consultants offer vertical industry practices, staffed by specialists in that sector. Or a practice might be built around a technology area, like Security or AI.
We are seeing more and more technology programs beginning to encourage or require the development of dedicated practices in partner organizations. We are also seeing vendors developing content to help their partners develop practices, advising on appropriate customer segments, and required skills. There’s a great example with Microsoft here.
DISTRIBUTION PRACTICES
We’re seeing the impact of practice development right through the indirect partner ecosystem of most vendors. Not only do we see vendors like Microsoft encouraging and enabling partners to build practices. We also see that from distribution companies.
The old ‘broadline’ distributor model is disappearing fast, as companies like Ingram, Techdata and Synnex build practices. Distribution practices offer vendors and channel partners a dedicated team of specialists who focus on a particular market sector.
The practice team in a distributor leverages the central services of the distribution business for order management and other traditional distribution functions, but it overlays a lot more than this.
Synnex ‘SOLV’ business practices for example, focus on specific markets and work more like Value Added Distribution businesses embedded in the main Synnex business. They offer specialist partners business planning services, training, pre-sales support and marketing content to drive customer demand.
See here
for more on Synnex SOLV business practices.
POINTS TO NOTE
• Practices are part of a strategic trend for vendors and distribution to engage with channel partners based on their market and customer specialization. Practices are the next step from partner competency measurements built into most large vendor partner programs today.
• Less mature partner programs which are based primarily on training certifications, must adapt to include customer success aspects to assess a channel partner’s domain expertise. Counting trained staff is not enough.
• Vendors must promote channel partners to end customers based on their vertical market or technology expertise in order to stay relevant. Channel partners who do not develop specializations will get left behind by vendors and by customers.