Predictions for the future of channels in 2022 and now

I am sitting at my desk having attended the Channel Partners Conference and Expo in Las Vegas and the Channel Futures event outside of Los Angeles last week. Yes. Two big events during the same week. I must say I was energized to be attending both of them. It has been far too long since I have seen my industry friends and family, and while COVID precautions were firmly in place, it seemed like we were getting “back to normal”. 

I am a firm believer that nothing beats a handshake and sharing a meal with people and both Las Vegas and Los Angeles did not disappoint. We joined over 5500 people and over 300 booth participants in Las Vegas. Foot traffic to our booth was amazing and the conversations were even better. We learned not only where the new cool places to eat are in Vegas but that our industry has changed.

1. Sense of urgency

We can see that the changes Covid has had on network operations are not only limited to certain regions. The conversations we were having were geared around new network designs and distributed networks. Covid brought a sense of urgency to what many companies had as long-term plans or future plans for digitalization. The future became the now.

2. New operations

Covid has changed the way many channel partners operate. We spoke to many leaders regarding mergers, many of which were happening among circuit brokers. However, these companies are not looking at ways to leverage the “traditional” carrier broker model into newer, more advanced, and higher profit businesses. We spoke about the insight that many channel partners are leaving on the table are equal to hard dollars. They could leverage network and application performance data they have access to and provide network optimization and/or consulting services. This also can deepen the relationships they have with their customers making them more likely to renew. This moves them beyond the traditional telecom circuit management or telecom expense management business and into true business consulting (higher margin!). 

3. Blueprints and a single throat

It was also evident in our conversations with many partners & OEMs that technology blueprints are here to stay. Enterprises do not want to go to multiple vendors to build a solution, they want a tested solution that works within their environment. They want faster implementation and this goes across traditional technology stacks. No longer do they want to deal with one partner for circuits, one for applications, one for hardware, and one for performance management. They want a single partner with a single complete design. The rise of the MSP/MSSP is here to stay, and those channel partners that do not expand their offerings to start becoming more full service will find themselves in a shrinking market. 

4. No need to talk

The Yang to this Yin also seems to be the increased rise in digital marketplaces. I say this because unlike the full-service “turn-key” solutions we are seeing, there is a group of users who want to have as close to a zero-touch experience with their vendors. They want to do the research by themselves, purchase it by themselves, and install it by themselves. This means the complex solution designs vendors have to need to be simplified. Vendors need to make sure their solutions are as simple to implement as possible and are able to be done without them getting engaged – a challenge for most. 

The future of channels is happening now

I think understanding these two differing ideologies will be key to how product managers design products, and how channel partners will add value to the market. The future is one of the more complex designs bringing together multiple vendors and professional services with MSPs and low complexity being sold on Marketplaces without the need for traditional channel partners. 

Does this mean we will see a reduction in the need for traditional channels? Will we see new Channel types arise? Or, do we vendors need to truly understand the markets we are trying to sell into? I think the answer is yes to all of the above. We need to always keep in mind how our buyers want to consume our offerings and work within the models that best serve that purpose. To do anything otherwise is to complain about being cold when someone is offering you a seat by the fire.