Next week we will announce a new partnership with VNC – a European distributor with resellers in Europe, Middle-East and Africa. This partnership represents another important step in gradually building a carefully selected and qualified distribution channel. There has never been any doubt about the importance of a channel to the long term success of HyperOffice. The challenge has been timing and finding the right partners.
For a partnership to be successful there has to be a viable and sustainable business relationship. In other words our partners have to be successful in generating revenues and profits in order for our partnership to grow and thrive. One way partnerships don’t last long and don’t make economic sense. A few years back when we were exploring different channel models and partnerships we quickly realized that the market was not yet ready for a broad scale push to cloud based collaboration and messaging.
As a result we felt our partners would likely run into undue friction in their sales and marketing efforts. Today, the market has changed dramatically. Cloud based collaboration has moved from a niche technology to mainstream. Businesses of any size and representing any industry are comfortable with this new technology and in most cases interested to learn more. Businesses are looking to their trusted advisors (resellers, consultants, vars…etc) to guide them through their options and to help them benefit from the cloud. Resellers and partners are now in a position where they can choose to embrace this new shift in how technology is sold, delivered and consumed and profit from it.
In the traditional software/hardware sales cycle, a reseller’s economic incentive is aligned with the vendor and not the customer’s ROI. In other words the majority of the effort on the reseller’s part is focused on making the initial sale. Once the sale is made the end customer will have to spend time, more money or both to get the technology they just purchased, deployed. Even more troubling is the fact that they are fully invested in that technology and stuck with it.
This model does not work well for most organizations and in particular for smb’s who lack the resources and the time for needs analysis, contract negotiation, large capital expenditure, long term IT planning and deployment. In the cloud model on the other hand the economic incentives for resellers, customers and vendors are all aligned with maximizing customer’s roi and with maintaining it through the life of the relationship. In this new model the customer’s investment in technology is spread over the life of their contract and is not concentrated all upfront. As a result the customer is in control and can cancel a service with minimum downside if they are not happy. Therefore, the successful reseller will have to adjust their business processes from sales and marketing to support to accommodate customers in this new world. The right partner for us therefore is an organization with:-
1. An understanding and appreciation for cloud based collaboration
2. The infrastructure, processes and mindset that can help customers drive value from HyperOffice long after the initial sale has been made
3. The required credibility to serve as a trusted adviser to their customers and partners
An established distributor in the SaaS and cloud marketplace, VNC offers a deep understanding of the cloud based collaboration market, along with a mature sales and support infrastructure. The executives at VNC have managed to build and operate a thriving distribution business while keeping ahead of the market and identifying the next important trend.
VNC is an ideal partner to take the next step with as we work to continue to build global marketing channels for the new generation of HyperOffice services and technologies.