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Transform or Risk Extinction (Part Two): Recognizing Value in Multiple Engagement Models

Posted By Cynthia B. Hanson, Tuesday, May 22, 2018
Updated: Sunday, May 20, 2018

This is the second of two blogs continuing my April 2018 eSAM Plus article on “Architecting for Transformation: The Next Generation Partner Ecosystem,” the title of a lively conference session led by Russ Cobb, senior vice president, growth and business operations at SAS Institute, and Norma Watenpaugh, CSAP, founding principal, Phoenix Consulting Group. The two took the stage at the A2018 ASAP Global Alliance Summit, “Propelling Partnering for the On-Demand World: New Perspectives + Proven Practices for Collaborative Business,”March 26-28, 2018, in Fort Lauderdale, Florida, USA. The drivers of seismic changes in channel partnering, Cobb and Watenpaugh explain explained, are the convergence of SMAC (social media, mobile computing, analytics, and cloud technology), the change in technology consumption, the rise of digital transformation (DX), and the Internet of Things (IoT).

Part One of this blog post concluded on Watenpaugh’s comment, “There are no simple partner models anymore. They are adopting complex, multi-faceted business models where they do all of the above.” So how to recognize value across multiple engagement models?

Watenpaugh: Companies need to recognize value across multiple engagement models in the following ways:

  • Partner programs are evolving to recognize the breadth of contribution from partners across a blended business model.
  • Incentives shift to reward behavior and customer value.
  • Vendors can no longer subsidize profitability through rebates or discounts.
  • Recognizing value, investment, commitment, volume.

Cobb: SAS has a partner program that has a precious metals taxonomy as well. What we are trying to do is have more partners because of economics—if we can get a partner to look at different ways at engaging with SAS, such as the ability to resell SAS or engage in analytic services with a revenue-sharing agreement with SAS. We are really focused on economics because of customer behavior.  The more ways we can get engaged with you partner-wise, the more commitment you will get. The ROI will go up over time. One reason we get partners to do things with us is we create commitment over time.

Watenpaugh: The cloud strategy right now is evolving and emerging. We need a flexible view of what cloud means. We need to transition to a service model. How can we help our customers fit into third-party cloud environments? We’ve got to figure out how to meet our customers where their need might be. There is a complexity of applications. No one can do it alone, so we are seeing more partner-to-partner. There are so many specializations. No company has it all. It’s becoming more and more important to get from a pick list to what skills are needed to deliver.

Some people think it needs to be more like a blockchain model. That involves the challenge of finding new partners and finding how to engage to meet the needs of customers. Infrastructure companies are challenged, and finding the right value and provision in the cloud is really a challenge.

Russ: This all comes down to if you are a channel or IT partner, what is your unique value proposition? You need a very crisp value proposition. So what is the road ahead in ecosystem evolution?

  • Industry trends in cloud, digital transformation, and IoT are driving disruption and opportunity in the market
  • Non-traditional partners offering access to the line of business
  • Vendors will be required to think more holistically about the capabilities of the partner ecosystem
  • Vendors must create relevance to business outcomes or become commodities
  • Creating a compelling partner experience

Check out Part One of this blog post as well as the May 2018 issue of eSAM Plus for other topics addressed in Watenpaugh and Cobb’s session as well as ASAP Media’s coverage of other sessions at the 2018 ASAP Global Alliance Summit. 

Tags:  blockchain  business models  channel partnering  channel partners  Cloud  complex partnering  digital transformation  IoT  Norma Watenpaugh  partner ecosystem  partner models  Phoenix Consulting Group  Russ Cobb  SAS Institute  SMAC  value propositions  vendors 

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Collaborating at Digital Transformation Speed: Report from the ASAP Tech Partner Forum, Part One

Posted By John W. DeWitt, Monday, June 12, 2017

ASAP Media Managing Editor Cynthia B. Hanson and I caught up with leading ASAP members from the ASAP Silicon Valley Chapter—and one from the ASAP Midwest Chapter—in an 8 a.m. Pacific debriefing the morning after the inaugural ASAP Tech Partner Forum in Santa Clara, Calif. Despite the early hour, triumph and excitement remained palpable on the conference call as the group of executives described the fruits of more than six months spent planning the event in conjunction with ASAP staff executive Diane Lemkin.

“It was pretty amazing. It all came together. I can’t believe it actually all happened after all that effort,” enthused Erna Arnesen, CSAP, chief channel and alliance officer at ZL Technologies. “Seventy-four people showed up. A few people registered right at the end. One guy signed up that morning—he came from Tahoe. The group of people was very diverse, coming from across Silicon Valley from most of the leading companies and from startups, so there was a very wide swath of companies represented.” Also, she added, “It was a good cross-section of ASAP members and nonmembers.”

Leading tech companies represented included Cisco, NetApp, Intel, SAP, GE Digital, VMWare, Citrix, Splunk, Oracle, ServiceNow, Cognizant, Microsoft, and Xerox. Aside from Silicon Valley, attendees came from San Francisco and points across the Bay Area. “We had quite a few people from Southern California,” noted Norma Watenpaugh, CSAP, principal of Phoenix Consulting Group. Her Phoenix Consulting colleague Ann Trampas, CSAP, flew in from Chicago where she also is a professor at the University of Illinois at Chicago. Trampas chimed in, “We also had folks from Scottsdale, and someone came down from Seattle from JDA Software” to join several other JDA colleagues, “there were several execs from Hitachi Data Systems, including one from Minnesota, and we had several people fly in from the East Coast,” she added.

“From the perspective of an attendee, the quality of the program was exceptional,” Trampas said. “It was right up there with the quality of ASAP Global Alliance Summit presentations, but in a more intimate environment allowing you more access to those speakers. So I was blown away by the program.”

“A lot of attendees said they liked the intimate grouping, the roundtables, that the room was ‘comfortably full,’” Watenpaugh said. “And by staying with the high-tech focus for the entire event, they felt the topics were targeted and addressed issues that participants had really dealt with in their companies. It was not a generic ‘this is how you do metrics,’ but rather, ‘this is how you work in high-tech partnering in the context of digital transformation.’”

After the welcome, host sponsor NVIDIA kicked off the ASAP Tech Partner Forum with what our group of reviewers described as an impressively relevant and “buttoned-up” presentation by John Fanelli, product vice president for NVIDIA GRID, and Olimpio DeMarco, director of strategic alliances for manufacturing & Architecture, Engineering, and Construction (AEC) industries for NVIDIA, a maker of graphics processing units (GPUs) that is evolving beyond its roots in making graphics processor boards for gaming. Beyond gaming, the company is developing technologies that venture into the real world and virtually real world: supercomputing, artificial intelligence, and deep learning, Watenpaugh said.

“John Fanelli and Olimpio DeMarco really set the tone for the rest of the day—it was really good,” commented Greg Burge, a consultant and former San Mateo County alliance executive with a long history at IBM who is the immediate past president of the ASAP Silicon Valley Chapter. NVIDIA developed CUDA—which stands for Compute Unified Device Architecture—as the company’s programming interface and software architecture framework for writing to a GPU. “They described how this software programming model has affected NVIDIA’s approach to its partner ecosystem—anytime you bring in software development, it changes the way you partner,” Burge noted.

“It was really great for the host to kick off the event that way,” agreed Watenpaugh. “What I thought was fascinating is that NVIDIA has a lot of alliances with car companies around self-driving cars and artificial intelligence. Fanelli talked about both Toyota and Honda as partners.”

The highly engaged audience asked good questions, Watenpaugh noted. “One interesting question was around NVIDIA GRID—an ecosystem of five partners built to virtualize 10,000 desktop computers for Honda. ‘How do you manage that kind of constellation alliance?’”

Another participant asked the NVIDIA execs, “’What about the services required for all the complex technologies and complex ecosystem engagements you’re involved in,’” Arnesen recalled. “John Fanelli was very impressive in outlining his products, channels and alliances, but admitted that NVIDIA is just getting going building out services” and services partnerships.

“The last thing that they talked about was speed-of-light culture, or SOL culture,” Arnesen continued. At NVIDIA, “alliances are not centralized—the company has a distributed strategy and model. Olimpio DeMarco has his own alliance people that manage these different types of partners, but Fanelli said, ‘We want to be fast and nimble and agile, so we manage them as we need them for our businesses.’”

Check out the ASAP Blog for our previous articles and forthcoming ASAP Media coverage of the June 7, 2017 ASAP Tech Partner Forum in Santa Clara, Calif., hosted by NVIDIA, at www.strategic-alliances.org

Tags:  alliances  Ann Trampas  ASAP Tech Partner Forum  channels  Cisco  Citrix  Cognizant  CUDA  Erna Arnesen  GE Digital  GPU  Greg Burge  Intel  John Fanelli  Microsoft  NetApp  Norma Watenpaugh  NVIDIA  NVIDIA GRID  Olimpio DeMarco  Oracle  partner ecosystem  partners  SAP  ServiceNow  SOL culture  Splunk  VMWare  Xerox 

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