Australia Channel Partners Face Business Model Shifts

New Nintex-commissioned survey finds third-party partners – ISVs, Resellers/VARs, and SIs – are shifting their business models, moving toward more managed services to generate predictable revenue

MELBOURNEMarch 24, 2016—A new survey of third-party partners in Australia from Nintex shows an earnest transformation of channel partner business models, with 52 percent of those surveyed reporting that the services they offer today are different than two years ago.

The channel-centric survey found that resellers, value added resellers (VARs) and system integrators (SIs) are evolving their businesses and moving beyond traditional sources of revenue, which have been primarily project-based.

“Partners must continue to evolve and expand their business models,” said Nintex VP of APAC Sales Brian Walshe. “We’re pleased that Nintex’s Australian-based partners are becoming more focused on cloud technologies, managed services and developing solutions that generate predictable revenue streams and serve customers for the long term.”

Nearly 40 percent of all respondents report that they are incorporating managed services—defined as delivering always-on billable services or service level agreement (SLA)-based services for business level support, maintenance, solution enhancements, and training—into their service mix.

Walshe adds, “We offer products and cloud services that help our channel partners build out their IP-based value propositions that leverage their own domain knowledge and experience through repeatable solutions for customers across a variety of industries and business departments.”

Additionally, over the last one to two years of this transformative period, partners identified three primary challenges facing them. Top challenges to overcome, by ranking, include:

  • Hire the right talent (66 percent)
  • Need to develop and refine pricing strategies (38 percent)
  • Build practice areas to support new technology (25 percent)

Cloud, Workflow, and Collaboration Technologies On the Rise

Within the next two years, Australia survey respondents expect to see a jump in cloud-based solutions, with more than 52 percent of partners estimating that more than half of their business will be from the cloud. This is up from about 31 percent in 2015. Interestingly, the top two technology solutions driving this change according to those surveyed, include workflow automation (48 percent) and employee collaboration/messaging (45 percent).

Fifty percent of the respondents also state that managed services will continue to rise over the next two years, and 43 percent expect an increase in their own IP as a differentiator.

Survey Methodology

The channel-driven survey by Nintex was conducted by Research Now in February 2016 and completed by more than 60 leaders from channel organizations in Australia. These individuals hold senior roles in sales, leadership, and IT. Sixty-six percent of the respondents work for organizations with more than 25 employees, and 64 percent of those surveyed organizations report revenues ranging from less than $10 million to $25 million.

Australia Channel Partners Focus on Managed Services for Business Model Transformation

Download Infographic

Australia Channel Partners Focus on Managed Services for Business Model Transformation