How channel partners can leverage cloud technologies to scale in the as-a-service economy
Channel partners play a central role in every B2B supply chain. While hardware and software providers might be the brands we all know, no complex B2B project can be completed without the domain expertise of channel partners offering pre- and post-sales professional services.
Despite their importance, most channel partners struggle to modernize and scale their business, distinguish themselves from the competition, and develop a unique value proposition. Margins in this segment also face significant levels of pressure, leaving extremely little room for growth with traditional business models – distributing and reselling hardware often comes with high operational costs, while hardware margins themselves are constantly under pressure as well.
However, new cloud technologies and the growing demand for Anything-as-a-Service (XaaS) offerings that will enable companies to adjust to the changing requirements of the agile, remote workforce of today present enormous opportunities for channels and service providers. Distributors, resellers, and system integrators that transition to subscription models can introduce new digital products and services that will not only help them create recurring revenue streams but also build long-term, sustainable relationships with their customers. Their current role as providers of hardware, software, and services positions them well to propose new Solution-as-a-Service offerings.
Three main benefits to cloudifying your business
Until recently, channel partners who wished to modernize their business through cloud technologies had to invest significantly in cloud infrastructure and the development of custom tools to enable this transformation. But with the introduction of new low-code and no-code solutions, specifically Connected Device Management Platforms (CDMPs), channel providers can now cloudify their business with a much lower barrier to entry and without the need for such investments.
By leveraging no-code cloud platforms, system integrators, managed service providers (MSPs), and other channel partners can benefit in a few key ways:
- Better collaboration. Channel partners can connect and collaborate with vendors, customers, and other partners in a unified cloud environment. Providing support and managing and escalating service tickets, for example, can all be done through one platform.
- Custom development. Tech-savvy channel partners can leverage easy-to-use cloud APIs to develop their own custom sets of cloud-connected products and services.
- Subscription-based sales. Channel partners can configure and offer customized catalogs of subscription-based digital products and services through a branded, independently managed online store. In addition, they can easily bundle their services with their affiliated vendors’ products for a complete Solution-as-a-Service.
Xyte powers a successful switch
High operational costs, low margins, commoditization, limited scalability, and disparate processes are some of the threats to business today that demand immediate action. While consolidation of business units and operational efficiency improvements can improve profits in the short term, the channel partners with the greatest chances of success in the years to come will be those that transition from one-time sales to cloud- and services-centric business models.
Xyte makes this transformation possible in a variety of ways. Xyte’s CDMP makes it easy for channel partners to launch or expand their cloud catalogs with various built-in vendor integrations, while also supporting easy custom integrations with other products and cloud services through an extensive set of open APIs.
Further, Xyte enables channel partners to offer subscription-based services, bundles, and hybrid solutions to their downstream partners and end users. Xyte’s billing engine facilitates streamlining payments, calculating taxes, and paying out commissions, for an end-to-end subscription solution.
Interested in learning more about how Xyte can help you cloudify your business? Contact us.