Channel leaders yet to establish a long-term growth plan have been urged to organise their thoughts and fully consider the strategic priorities that matter most, according to experts at last month’s Comms Dealer Channel Forecast insight session. Especially, they say, at this time of remarkable industry change and opportunity.
How resellers and MSPs respond today to the speed of technology and market change will be critical to their long-term success, according to Ian Dunstan (pictured left), Managing Director, Cobalt. He says the decision making process should be future-focused and based largely on strategic outcomes, and he predicts good times ahead for channel firms that make the right moves when addressing the unprecedented growth opportunity within their reach. “2025 is going to be phenomenal,” he stated. “I’ve never seen growth and technology advancements move so quickly. My advice is to focus on the outcomes you’re looking for and then decide how emerging innovations can drive them.”
Key to this approach is prioritising strategies and solutions that will bring resellers closer to existing customers as their expectations grow, believes Dion O’Byrne (pictured left), Channel Sales Manager, Rydal Group. This will drive differentiation and facilitate expansion in specialist verticals, he says. “The evolution of the market and the adoption of as-a-service models has increased customer expectations as users now demand integrated, seamless and secure solutions bespoke to the sectors they work in,” commented O’Byrne. “The resellers and MSPs who are going to excel this year will adopt a consultative selling method and onboard solutions aligned not only with the sector but the personas within those markets. Building a bespoke offering around customer needs will enable resellers to increase their wallet share.”
Automation
The rise of automation also provides an opportunity for channel firms to enhance their existing operations by increasing productivity with fewer resources. Scott Goodwin (pictured left), SVP International Market Development, NetSapiens UK, highlighted that automation is key to creating a platform from which resellers can orchestrate new solutions with the least amount of friction. “This is where the best investments will be made in 2025,” he said. “Growing organisations will be looking at their structure and seeking the best ways to improve productivity, while casting their net wider for additional capabilities and driving vertical opportunities.”
Don’t try and be something you are not for the sake of expanding the portfolio
Dunstan shared his optimism about the pipeline of products expected in 2025, but cautioned resellers against adopting those that may distract from their core capabilities. “Smaller resellers can move faster and adopt technology as it emerges,” he added. “And the products coming out of the pipeline in 2025 are fantastic, incorporating internal development within products around AI and automation.
“This means resellers can deliver on the perennial end user demand of getting more for less, but don’t try and be something that you are not for the sake of expanding the portfolio, as these are likely areas you don’t have the skills to adopt properly. Strengthen areas where you already have expertise as opposed to trying to reinvent the wheel by going all in on emerging technology such as AI.”
Adding value
He also highlighted that Cobalt has added services such as energy and AI voice that complement the company’s current offering, and increased ARPU from existing customers. Goodwin agreed with this point, stating: “Make sure the juice is worth the squeeze. If plugging a portfolio gap adds value, then do it, but try and get as much validation as possible that this isn’t just a fad in terms of customer adoption.”
Building a bespoke offering around customer needs will enable resellers to increase wallet share
Goodwin cited AI as a prime example of a product being taken out of its real market context due to the buzz it has created. “You’ve got to understand the difficulty of implementing AI and developing a use case,” he added. “This is due to the expertise needed to stitch multiple tools together, and if you are using 30 people to do that you are defeating the object.”
He also noted that AI, when used properly, will add value to end users but highlighted a potential issue around monetisation. “There’ll be commoditisation when people do create a fantastic opportunity, as others will see what they’ve done and quickly follow it, sparking a race to the bottom,” he said.
Dunstan noted that he has been dabbling with AI for about four or five years but still does not have a full product to go to market, apart from Copilot and other off-the-shelf solutions. He suggests that organisations look at AI through the lens of creating greater efficiencies within their own business.
Goodwin added: “We’re looking at how to take AI into our business to provide better learning management systems for partners and produce a better front end in terms of customer support, allowing us to scale.”
Our experts put forward multiple methods for ensuring that potential solutions would be a suitable fit for resellers, including a focus on analytics. O’Byrne commented: “Leveraging data is a great way to better understand customer needs and make business decisions based on anticipated demand.”
He suggests resellers take this understanding of their client base and the sectors they operate in to build bespoke solutions before conversations begin. “That way you will be ahead of the pack,” he added. “This is a launching point to build programmes for clients that drive loyalty and create a sticky customer base.”
Make sure the juice is worth the squeeze. If plugging a portfolio gap adds value, then do it
O’Byrne also highlighted the role of vendors in giving strategic advice for capitalising on their own roadmap. “Find a vendor that will give you account management inclusive of a strategic audit on the portfolio,” he said, also noting that this includes a look at what they’re currently carrying, where it is seeing success and a strategic overview of gaps in a reseller’s portfolio which could be filled with products that can increase margins.
“The key message is that partners need to be strategic with wholesalers,” he added. “Not only looking at partners that have new-to-market offerings, but those that provide sales enablement for resellers to attack their own base, retain accounts, win new business and increase margins.”
Feedback matters
Customers of course provide the clearest picture of end user demand and Dunstan noted that sales teams should be empowered to act based on requests from users. “Be open to feedback and elevate your trusted advisor status,” he said. “This is important to remaining competitive and ensuring you don’t lose business.”
This approach highlights the benefit of staying close to customers and Dunstan added that it favours more traditional go-to-market strategies. “I’m always desperate to use the latest technology and I have spent lots of time and piles of investment trying to work these into new GTM strategies, but so far none have worked,” he explained. “For Cobalt, the strategy that has formed the strongest long-term relationships is being an honest supplier, talking to our customers and letting them see what we can offer them. Many of our strongest partnerships come from the client seeking us out.”
Goodwin summarised the opportunity for resellers who box smart, saying: “Innovation means a lower barrier for entry with smaller service providers accessing technology more easily. Those who see success will understand their market, shape tailored solutions that are unique to them, plug in the relevant value adds and create some sort of magic for their customer.”
See next month’s magazine for part two of this Channel Forecast insight session.