What Value Added Services will the Channel be Selling in 2020?

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by Braham ShniderBraham Shnider

In Part One of this blog, I answered the question, “What won’t be a channel value-added service in 2020? And why?” Today in Part Two, I will deal with the question of “What will be a channel value-added service in 2020?”

Part Two.

Many may have interpreted my last blog on the future of channel-delivered value-added services as dire, nothing could be further from the truth. 

The demand for value-added services delivered by channel partners will increase but it will be the types of services that will change dramatically over the next 3-4 years.

Let’s first take look at the emerging technologies I think will be most relevant to the channel in 2020?  To make this assessment I have used the following subjective criteria:  

So based on the above criteria I believe there are 3 groups of emerging technologies which are most relevant to channel in the next 3-4 years. These can be grouped as 

1. Data is the currency of the emerging digital economy. These include… 

2. Automation to redefine the front and back office. These include… 

3. Industrial Technologies will change how things get done. These include… 

Based on the above emerging technologies (combined with the fact business end user customers are limiting investments to core competencies), it’s my belief there will be 3 types of value-added services which can offer significant differentiation and high gross margins to the channel. These are… 

1. Pure Data Services. The focus is all about helping business customers monetize their data by identifying, analyzing and leveraging their data sources to increase revenue. Partners will need to invest in…  

2. Industry Packaged Solutions. Vertically integrated solutions to embed technology into life and work, driving operational efficiencies from device to sensor, to the edge and to the app in the cloud including predictive analytics and AI. All to be included as part of  a single recurring charge. 

These Solutions will be delivered and customized in small, Industry specific fully integrated packages. The services will be included as part of recurring charges, with partners needing to invest in…  

3. Horizontal Technical Services. These are technical services common to many end user customer segments. It is the inverse scenario to what I wrote about in my last blog, where there is an undersupply of technically competent individuals to satisfy customer demand. Simple macroeconomics. 

These will typically still be delivered by a customer-specific Statement of Work. It is much harder to predict the supply versus demand equation in 2020 than for points #1 and #2 (above) but below are my thoughts on some of the bigger services opportunities… 

VAS in 2020

That’s my take. What value-added services do you think will create differentiation and profit for channel partners in 2020? 

Join me next week for my next Blog on “channels of the future.” 

Braham Shnider is a channel management expert, strategic thinker, change agent, and implementer of innovative hybrid sales models for global companies in more 30 countries. Braham was the founder and served as CEO for 13 years at Channel Enablers, a global channel training provider for vendor channel teams and channel consulting solutions company with expertise in multi-channel routes-to-market. He negotiated the sale of Channel Enablers to Miller Heiman Inc. in 2013. Braham continues to work with a select few global clients on their next generation channels and partner ecosystems.

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