Are Channels Any Good at Selling SaaS and Cloud Services? A Forrester Research and Avangate Study

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1 Are Channels Any Good at Selling SaaS and Cloud Services? A Forrester Research and Avangate Study

2 Housekeeping Rules 1. All lines are on mute 2. Use the Questions Box on the right 3. Questions will be answered towards the end of the webinar. 4. Unanswered questions and parking lot items will be followed up subsequently. 5. This presentation is being recorded for later playback and sharing. 6. Feedback forms will be provided at the end of session

3 Today s Speakers Peter Sheldon Principal Analyst Forrester Raj Badarinath Sr. Director, Product Marketing 3

4 2012 Forrester Research, Inc. Reproduction Prohibited 4

5 Today a third of SME s buy on-premise software from direct market resellers (DMR s) 2012 Forrester Research, Inc. Reproduction Prohibited 5

6 ISV s expect channel partners to play a greater role in distributing their SaaS products 2012 Forrester Research, Inc. Reproduction Prohibited 6

7 Many customers still value the VAR relationship

8 When it comes to SaaS, VAR s and online are the fastest growing channels outside of direct

9 Many VAR s still have their head in the sand when it comes to SaaS

10 But those that are interested in reselling SaaS find their vendor partners aren t ready or willing to support them 2012 Forrester Research, Inc. Reproduction Prohibited 10

11 VAR s feel locked out SaaS game

12 66% of SaaS vendors believe their channel partner program is strategically important But only 40% agree their channel program is currently successful 2012 Forrester Research, Inc. Reproduction Prohibited 12

13 Vendors are acutely aware they are not doing enough to support the channel 2012 Forrester Research, Inc. Reproduction Prohibited 13

14 Microsoft s open partner program for Office 365 allows partners to own the billing and customer relationship 2012 Forrester Research, Inc. Reproduction Prohibited 14

15 Adobe s Value Incentive Plan for their Creative Cloud services is offered exclusively through channel partners 2012 Forrester Research, Inc. Reproduction Prohibited 15

16 Channel partners simply don t have the right tools to support SaaS

17 Channel partners expect support and tools from their vendors to enable them to successfully resell SaaS 2012 Forrester Research, Inc. Reproduction Prohibited 17

18 Vendors plan to expand the commerce tools they currently provide to channel partners 2012 Forrester Research, Inc. Reproduction Prohibited 18

19 Key Takeaways Channel partners are set to play an important role in growing SaaS revenues for SMB customers Channel partners want to sell your SaaS products, but aren t currently empowered to do so Software vendors need to develop comprehensive commerce tools for partner enablement 2012 Forrester Research, Inc. Reproduction Prohibited 19

20 Avangate Introduction Avangate is the agile commerce-as-a-service provider trusted by over 2700 software companies to accelerate cloud commerce worldwide. ecommerce Channel Management Affiliate Management Merchant and Marketing Services

21 Avangate Accelerating Cloud Commerce Over 2,700 Software Customers. 4,000 Resellers. 37,000 Affiliates. B2B Both B2C Since 2006 Deep Focus On Software and Cloud Services Consistent Growth Of 75% Per Year Locally Headquartered In Redwood Shores, CA Global Team Of 120+ Employees With Offices In North America, Europe, Asia

22 Software & Cloud Services Blueprint Online / In- App Orders Mobile Customer Portal / Self-Service Contact Center Channel / Partner Affiliate Network Marketplaces Touchpoints Online, API-based, Account Mgmt, Branded, Rulesbased, Personalization / Localization Distribution On-Board, Activate, Manage across Indirect Channels Commerce Engine Acquire, Scale, Retain, Expand leveraging Marketing Tools, Order Management, Fulfillment / Provisioning and Revenue Assurance Subscription Billing Global Payments Systems of Record Extend and Integrate across Customer, Product, Pricing, License / Subscriptions, Order, Financials

23 Avangate Commerce Platform Online / In- App Orders Mobile Customer Portal / Self-Service Contact Center Channel / Partner Affiliate Network Marketplaces Sky ecommerce Sky Channels Sky Affiliates Avangate Commerce Platform Subscription Billing Global Payments Systems of Record Extend and Integrate across Customer, Product, Pricing, License / Subscriptions, Order, Financials

24 Basic Value Automate Channel-Enabled Channel Maturity Channel-Enabled Relationship Management Channel Sales & Service Mgmt Partner Order & Revenue Mgmt License thru Activation/ Entitlement Partner onboarding, lead mgmt, sales & marketing collab Sales acquisition, visibility, ROI Partner portal, price / promotions, order capture, financials Increase TTM, Margin, Visibility & control Assisted / Self- Service Increase Usage, Retention, Margin Maturity

25 Benefits Partner Order and Revenue Management 1. Simplify Partner Engagement 2. Automate Revenues 3. Renew Via Channels in an Integrated Platform

26 1. Simplify Partner Engagement Make it Easy Fast Partner On-boarding Web-based Partner Portal, PRM integration, Partner Tiers, Credit limits, Margins for new v/s renewals Visibility on key business metrics Dashboards, Unified Sales Reports, Measure Channel Efficiency and performance Respond faster with fewer resources Alerts, Notification, Workflows, Centralized Partner Admin Console, Approvals, discounts

27 Channel $ 2. Revenue Automation Automate both the Long Tail and the Fat Head 24X7 Ordering Support Partners around the world, Pricing Tiers, Bundles, Offers Simplify Billing & Invoicing Support Bulk ordering, Subscriptions, T&C s, Multiple Price lists for New and Renewals Automate Payments & License Fulfillment Global Payment Methods/Payments, License/Key thru Activation/Amend Channel Partners

28 3. Renew Via Channels Focus on the Customer at Ordering and Service Moments of Truth To Increase Usage, Upgrades, and Retention Enable Channels and CSR s Partner Assisted Service for upsell, add-ons, renewals, CSR service on-behalf of and Your Customers to Renew MyAccount Self-Service with Partner Attribution Automate Communication Partner Reminders, Channel Renewal Programs, / Marketing Tools Drive Retention Monthly vs. Annual, Renewal / Upgrade Discounts, Tiered Pricing, Partner Margin Tiers Stimulus Order Service Channel Partners Customer Service Self Service

29 Integrated Commerce Platform Turnkey Solution One Platform for Operational Flexibility Advanced Commerce platform, Revenue Model, Multi-Channel; single product catalog Integrate once, Extend to Channels PRM, CRM, Financials Secure, PCI-Compliant Global Managed Platform, Localized Expertise / 24x7x365, Risk/ Fraud

30 The Avangate Difference Partner Order and Revenue Management System Enables Vendors To Expand to New Markets and Touchpoints Cross-channel visibility and control Channel management and automation Customer lifecycle management through channel & affiliate networks Channel Manager provides a global overview of channel sales and freed up significant internal resources allowing us to properly nurture partner relationships. Our distribution network doubled after the first year

31 Questions?

32 Thank You! To download the Forrester Reports or more information on Avangate and SkyCommerce, please visit Stay Tuned for the next Avangate Webinar: How to Navigate The Perfect Storm in Software Commerce May 7 th, 2013 Register at Avangate Inc. Redwood Shores CA., USA Tel: (650) Avangate B.V. Amsterdam, The Netherlands Tel:

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