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Cloud mastery - why channel partners need it to survive

An analysis of a massive database of 420K partners, driving $130B in resell across 80 countries, uncovers a 👀 startling fact: only 25% are highly #cloud-focused.

Are 3 out of 4 channel partners headed for extinction soon?





These are the compelling findings from Bain & Company's analysis of one of the largest databases of #channelpartners.


Cloud technology is making waves, altering the playing field for channel partners.



☁️ SaaS vendors are seeking out cloud-ready channel partners


Over 50% of today's software is already based on SaaS. With a SaaS sector growing 10X faster than its on-prem counterpart, this trend is only accelerating.


New SaaS vendors expect a substantial cloud focus from their partners.


50% should be high to very high cloud savvy, with a further 25% at least medium-focused. This new breed of SaaS companies is also embracing dynamic partner ecosystems, and tapping into cloud native distribution models like cloud marketplaces.





🏢 This shift isn't limited to vendors; enterprises also demand cloud-first channel partners

~60% of enterprises are turning to B2B channel partners for their cloud initiatives. Given the complexity of their technical needs and the concurrent use of multiple products, these enterprises need partners adept in advanced cloud capabilities and experience in hybrid or multi-cloud environments.



💢 Yet, here lies the disconnect


only 25% of channel partners maintain a high or very high focus on the cloud.

Unless they adapt rapidly, the remaining 75% might find themselves outpaced.


The cloud is not a mere extension of the old-school on-prem; it's a distinct paradigm requiring a different approach to sales and partnerships. In this cloud-dominant era, aligning with non-cloud-native partners may leave new SaaS companies and enterprises trailing behind.



Channel partners, the cloud revolution is here. It's time to upskill and embrace the cloud - not only to survive but to thrive. The future of your business may depend on it.




Graph: Bain

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