October 29, 2007

SaaS Economics Will Change ISVs' SI And VAR Channels

Channel Managers: Retool Partner Programs To Prevent SaaS Delivery Disaster

by Michael Speyer

with Eric G. Brown, Emily Van Metre, Christina Lee

Executive Summary (This is a document excerpt)

Software-as-a-service (SaaS) is restructuring software channel managers' relationships with their implementation partners and reseller channels. The revenues that system integrators (SIs) receive from SaaS sales and implementation services are much smaller than those from traditional on-premise solutions of a similar size. The consulting skills required for successful SaaS project delivery are also different, with the emphasis on business change management and not on technical implementation. As SIs and VARs change their sales models and consulting skills sets in order to compete successfully in the SaaS world, traditional software vendors will need to nurture their channel partners as they develop SaaS sales and delivery capabilities.

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