The Doyle Report: Specialty Partners Are Fueling the Growth of Vertical Software Vendors
“When he joined Intacct in July of 2010, then Channel Sales Vice President Taylor Macdonald had trouble finding traditional technology consulting companies willing to build business practices around Intacct’s fast-growing line of accounting and ERP solutions. Frustrated, Macdonald found himself with entire territories without a single partner. His company’s technology wasn’t the problem, but the attitude of some channel partners instead.
Some traditional IT channel consultancies told Macdonald they weren’t interested in retraining their people to sell vertical market software. Others said they didn’t see the need for new investments because their storage and networking sales were growing so strongly. Still more said they didn’t believe cloud computing would ever capture their customers’ imaginations.
Fast forward to 2017. Product margins are in decline. Cloud sales are on the rise. And Macdonald is now a senior vice president. His success is not due to the traditional partners that he persuaded to sign up with his employer so much as the unconventional ones he convinced instead. Think accounting firms, management consultants and more.
“What we figured out was that if we were to continue to grow at 40-45 percent per year, we had to find another way,” said Macdonald recently. Knowing that a channel was his best option for creating scalable growth, Macdonald began recruiting new and different partners to sell Intacct’s solutions. He calls them specialized partners.
Many experts have examined the rise of these partners. This includes The 2112 Group, which published a report entitled, “Understanding & Leveraging Specialized Channels,” in November 2016, and Baptie & Co., which hosted an industry event in November 2016 entitled, “Specialized Channel Focus.” Software vendors including JazzHR have also embraced these kinds of partners and, like Intacct, have pursued them in earnest.”
> Read the full article, The Doyle Report: Specialty Partners Are Fueling the Growth of Vertical Software Vendors, at mspmentor.net.