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Major trends for the IT & Telecom Channel - Part 4

Friday, January 29th 2016

Part 4/4: Convergence

Major trends for the IT & Telecom Channel - Part 4
For many years there have been two areas of the channel where convergence between technologies has had an important impact: Print and Telecoms.

Even if these solutions are quite far apart from each other they do have some points in common.

Here are those that are interesting:
  • Both businesses have a part of the channel that has developed its business in a recurrent activity and a part of the channel that is more transactional oriented.
  • Both businesses need to develop the services part of their revenue.
  • Both businesses face difficulties putting the convergence into place.
  • Both businesses are going to face a price war and try to reduce partner margins.
  • Both businesses have numerous channel managers who are closer to retirement than to funding a family.
  • Both parties have historical contracts with their partners that can’t be easily changed and that slow down adaptation.
But the convergence will happen in slow motion, if no disruptive technology or model is created, or quicker if the contrary. Many partners have changed hands in the past years and many are going to change. It’s a hard time but these partners have an immense and valuable asset in this world of dematerialization… they will be the only ones to meet the client - an extremely good reason to keep them alive in your channel.
Jack Mandard

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