[COMPANY] Internal Use Only August 2000 Page 1 Distributor Acquisition Team August.30.2000 2001 Partner Acquisition Plan “Times they are a changin’ ” - Bob Dylan
Jun 30, 2015
[COMPANY] Internal Use Only August 2000
Page 1Distributor Acquisition Team
August.30.2000
2001 Partner Acquisition Plan
“Times they are a changin’ ”- Bob Dylan
[COMPANY] Internal Use Only August 2000
Page 2
Meeting Objectives
Review a new partner acquisition strategy and framework Obtain management approval to proceed with the development of
a detailed implementation plan
[COMPANY] Internal Use Only August 2000
Page 3
Meeting Agenda
Current Situation Overview The Paradigm Shift
Technology Adoption Lifecycle New Partner Program Framework New Landscape
Conclusions 2001 Product Landscape
Action Plan Key Recommendations Deliverables and Timeline Critical Dependencies
[COMPANY] Internal Use Only August 2000
Page 4
2000 Situation Overview
Majority of existing partner base originated as interconnect VARs All partners are considered ubiquitous (“all VARs/Resellers are considered
equal”) and non-specific. Acquisition strategy based upon ability of prospect to sell products (data or voice).
Agreements established and acquisition programs in-development with key distributors ([COMPANY] North Supply) and 2-Tier manufacturers (Polycom, Sony). Other engagements (Cisco, Microsoft, Lucent) have not proved successful.
[COMPANY] selling “products through the channel” versus “components of a total solution delivered by the partner to the end customer”
No framework or decision criteria exists for driving partner acquisition Organization lacks sufficient understanding of profile of [COMPANY] partner
base and that of channel players/dynamics Acquisition value proposition used in market messaging is based on
“features/benefits” of Partner’s Program membership
[COMPANY] Internal Use Only August 2000
Page 5
Partners
Data VARVoice VARRegionalNational
ManufacturerDistributor
On
line
Mo
dels
Re
tail
Ag
ents
Affin
ity
Pro
fessio
nal S
ervice
s
Lea
d R
eferra
l
Current [COMPANY] Indirect Channel Landscape
[COMPANY] Internal Use Only August 2000
Page 6
Product Landscape
Voice Products Switched Voice Business Flex/All Calls All Day Real Solutions (Large/Small) Voice VPN Distance Free Voice Hospitality/Pay Phone Local Resale International
Data Products Dedicated IP Frame Relay DSL/Broadband Private Line ATM Internet VPN ISDN/SDS Web Hosting (Large/Small) Managed Security MNS ([COMPANY] ENS) eBusiness Applications Fixed Wireless ION
[COMPANY] Internal Use Only August 2000
Page 7
Voice & Data Programs
AcquisitionNew or
Transitioned Partners
Partners are ubiquitous and non-targeted
Acquisition is driven by the need for market share and gain more productive partners
Current Partner Acquisition
[COMPANY] Internal Use Only August 2000
Page 8
Objectives
Define an architectural framework from which successful partner models can be created
Define desirable partner models for [COMPANY] Indirect Channels
Define criteria set for use in partner identification Match product solution sets to appropriate partner model Define deliverables and timelines
[COMPANY] Internal Use Only August 2000
Page 9
The Shift
“Changes in latitude, changes in attitude”- Jimmy Buffet
[COMPANY] Internal Use Only August 2000
Page 10
Voice & Data Programs
Acquisition Partners
Current View...Partners are ubiquitous and non-targeted
Acquisition is driven by the need for market share and gain more productive partners
Partner Acquisition
Map to Partner Models
Match Product Solution
Future View...Partners are defined as being unique and by the solutions they sell
Acquisition driven by end user needs, product solutions and partner business models
End Usershave
Business Problems
moveto
The Paradigm Shift
[COMPANY] Internal Use Only August 2000
Page 11
"The Chasm"
LaggardsLateMajority
EarlyMajority
Early Adopters
Innovators
End User Technology Adoption Lifecycle
The technology adoption lifecycle was created to give technology companies a view of HOW end-users acquire technology and WHY these individuals are different
[COMPANY] Internal Use Only August 2000
Page 12
"The Chasm"
LaggardsLateMajority
EarlyMajority
Early Adopters
Innovators
Marketplace Overlay
Audio Conferencing Dedicated IP
Hosting (colo and dedicated)
DSL
ION
Collaborative Services
ASP
Video Conferencing
Frame Relay
ISDN
Local Access
Long Distance
X.25
Dialup Internet
Where do [COMPANY]’s products and services fit within the Technology Adoption Lifecycle?
[COMPANY] Internal Use Only August 2000
Page 13
Converged NetworksVoice + Data + Video
ION, ASP, EBACollaborative Services
Separate NetworksVoice & Data & Video
IP, Frame RelayDSL, Private Line
Single NetworkVoice OR Data OR Video
Leased LinesVoice/Long Distance
"The Chasm"
LaggardsLateMajority
EarlyMajority
Early Adopters
Innovators
Marketplace Overlay
[COMPANY] Internal Use Only August 2000
Page 14
Converged NetworksVoice + Data + Video
ION, ASP, EBACollaborative Services
Separate NetworksVoice & Data & Video
IP, Frame RelayDSL, Private Line
Single NetworkVoice OR Data OR Video
Leased LinesVoice/Long Distance
"The Chasm"
LaggardsLateMajority
EarlyMajority
Early Adopters
Innovators
Partner Business Model Overlay
Custom ServicesHigh Margin
Custom OfferingConsultants
Integrated ServicesMedium MarginStandardization
VARs/SIs
Commodity ProductsLow Margin
“Shrink-wrapped”Retail/Self Service
[COMPANY] Internal Use Only August 2000
Page 15
Web IntegratorWeb Integrator
Web DeveloperWeb Developer
ConsultantConsultant
Infrastructure ConsultantInfrastructure Consultant
ISVISV
E-Business Solution ProviderE-Business Solution Provider
Business Process ConsultantBusiness Process Consultant ISPISP
Application Service ProviderApplication Service Provider
Software DeveloperSoftware Developer
Web
Innovator
Web
Innovator
E-Business Engineering SpecialistE-Business Engineering Specialist
Internet Service IntegratorInternet Service Integrator
Network/Systems IntegratorNetwork/Systems Integrator
“VARs” Don’t Call Themselves VARs
The Great Name Game
Network Service ProvidersNetwork Service Providers
[COMPANY] Internal Use Only August 2000
Page 16
The Partner Landscape
Consultants Utilize technical expertise to enable
new or emerging technologies Focus on services and
relationships IT Consultants, ASP
VARs Provide solutions to specific
vertical industry or technology Lead with product sale and pad
margins with services (installation, setup, maintenance, etc.)
SMB Solution Provider, F500 Solution Provider, Vertical VAR, ASP, ISV
Integrators Leverage expertise in a specific
technology Usually lead with services, but may
provide products as part of a complete solution
Network Solution Provider, Systems Integrator, Web Integrator
Retail Sell products, not solutions (broad
range of technology) Typically low margin opportunities
for proven technology Staples, Office Depot,
bizbuyer.com
[COMPANY] Internal Use Only August 2000
Page 17
Converged NetworksVoice + Data + Video
ION, ASP, EBACollaborative Services
Separate NetworksVoice & Data & Video
IP, Frame RelayDSL, Private Line
Single NetworkVoice OR Data OR Video
Leased LinesVoice/Long Distance
"The Chasm"
LaggardsLateMajority
EarlyMajority
Early Adopters
Innovators
Partner Fit
Consultants
Integrators
VARs
Retail
[COMPANY] Internal Use Only August 2000
Page 18
Partners
Data VARVoice VARRegionalNational
ManufacturerDistributor
On
line
Mo
dels
Re
tail
Ag
ents
Affin
ity
Pro
fessio
nal S
ervices
Lea
d R
eferra
l
Current [COMPANY] Indirect Channel Landscape
[COMPANY] Internal Use Only August 2000
Page 19
Partners
On
line
Mo
dels
Re
tail
Ag
ents
Affin
ity
Pro
fessio
nal S
ervices
Lea
d R
eferra
l
Non-Selling
Selling Tiered
New [COMPANY] Indirect Channel Landscape
[COMPANY] Internal Use Only August 2000
Page 20
Non-Selling
Selling Tiered
LeadReferralAgent
Manufacturers
Distributors
Regional &National
InternetLead
Referral
Partners
LeadReferralAgent
New [COMPANY] Partner Framework
CLP
OnlinePartners
[COMPANY] Internal Use Only August 2000
Page 21
Components Non-Selling Selling Tiered
Contractual revenuecommitment
May be required, basedupon solution/product set
Yes – the amount will bedetermined based uponrevenue requirements,
number of sellingpartners and product
offering
Yes – the master will beresponsible for deliveringthe revenue requirement
Sprint branded products Yes Yes Yes
Product certification May be required Required May be Required forsome product offerings
Dedicated Sprint sales forceto support resell partner
May be required Yes Dedicated resources willbe required for success of
program
COOP advertising accrual forsales
No Yes Yes
Market Development Fundsavailable
No Yes Yes
Participation in SprintIncentive Programs
Special programs may bedeveloped for non-selling
partners
Yes Special programs may bedeveloped for tiered
partners
Proactive marketing andsales of Sprint Products andServices
Yes Yes yes
Commission payable to resellpartners
Variable 6% to 22% Varible
Partner dedicated sales force May be required Yes Yes
Online/Offline presence Both Both Both
Preliminary Partner Model Components
[COMPANY] Internal Use Only August 2000
Page 22
Preliminary Partner Model Functions
Function Non-selling Selling Tiered
Prospecting Yes Yes Yes
Pre-sales Support Yes Yes Yes
Pricing Optional Yes Yes, pricing support fortheir reseller base
Proposal to Customer Option Yes Yes, proposal support fortheir reseller base
Credit Application No Yes Yes, credit applicationsupport for their reseller
base
Ordering No Yes Yes, order entry supportfor their reseller base
Provisioning (act as customerliaison)
No Yes Optional
Billing/Invoicing to endcustomer
No No No
Post Sales Support No Yes, provide first call orcontact for customer
Yes, provide first call orcontact for reseller base
[COMPANY] Internal Use Only August 2000
Page 23
Conclusion
“The Long and Winding Road…”-Paul McCartney/John Lennon
[COMPANY] Internal Use Only August 2000
Page 24
ION
Frame Relay
IP
DSL
Product Description
2001Revenue
Target
Provides network capacity and dynamicbandwidth allocation to integrate voice,
data and e-business applicationsthroughout any enterprise
An efficient communications service usingfast packet switching technology to provide
reliable delivery over virtual circuits
Dedicated IP access which allows traffic to be connected directly through to the long distance
carrier with online sharing, bypassing the LEC
Converts standard phone lines from a singleanalog circuit into multiple, high-speed
digital circuits, which simultaneously carryvoice, video, and data traffic.
Revenue targets are an integral component of any acquisition strategy
$M
$M
$M
$M
2001 Targeted Growth Product Landscape
[COMPANY] Internal Use Only August 2000
Page 25
New technology Early life cycle High service content Solution/service product
Target Markets Large Business
Head quarter locations Large Branches Small branches/retail Telecommuters
Small Business Desktop businesses Networkers Connected enterprises
Non-Selling Partner
Selling Partner
Tiered Partner
Implements, hosts or maintains customized solutions
consultative approach to selling for end-user applications
system/network design and engineering expertise
lead generator
analytical/research oriented
tech savvy/ focus on Fortune 500 companies
customer base typically lacks internal IT department
National or Regional reseller of equipment or services
customizes solutions for hardware, software or communications services
sells, provisions, installs, and maintains CPE
able to design and install LAN/WAN
located in or service ION cities
equipment manufacturer or channel distributor willing to bundle with [COMPANY] ION solution
consultative approach to selling of end-user applications
mature two or three-tired distribution channel comprised of existing relationships with VARs and distributors
substantial back office infrastructure; able to support on-line order entry
ION Partner Landscape
[COMPANY] Internal Use Only August 2000
Page 26
Non-Selling Partner
Selling Partner
Tiered Partner
Mature product Late majority lifecycle Medium margin Operational excellence
Target Markets Mid to large businesses with multiple locations Businesses which need company wide secure connectivity to mission critical, productivity enhancing applications
Implements, hosts or maintains customized solutions
consultative approach to selling for end-user applications
system/network design and engineering expertise
lead generator
customer base typically lacks internal IT department
National or Regional reseller of equipment or services(routers, network management, Managed services)
customizes solutions that require a high level of security
sells, provisions, installs, and maintains CPE
able to design and install LAN/WAN
multi-regional presence
partner company consists of sales and technical resources
equipment manufacturer or equipment manufacturer or channel distributor willing to bundle with [COMPANY] Frame services
consultative approach to selling of end-user applications
mature two or three-tired distribution channel comprised of existing relationships with VARs and distributors
substantial back office infrastructure; able to support on-line order entry
Frame Relay Partner Landscape
[COMPANY] Internal Use Only August 2000
Page 27
Non-Selling Partner
Selling Partner
Tiered Partner
Accepted technology Early majority lifecycle Medium to Low margin
Target Markets Small business and telecommuters Businesses that currently have dial up internet access and want to have high-speed dedicated service at a price point below dedicated T1 Businesses who do not require SLAs for dedicated internet access
Implements, hosts or maintains customized solutions
consultative approach to selling for end-user applications
system/network design and engineering expertise
lead generator
customer base typically lacks internal IT department
reseller of equipment or services (routers, modems, servers, workstations)
resellers of web hosting, e-commerce, ASP services)
sells, provisions, installs, and maintains CPE
able to design and install LAN/WAN
network equipment manufacturer or channel distributor
consultative approach to selling of end-user applications
mature two or three-tired distribution channel comprised of existing relationships with VARs and distributors
substantial back office infrastructure; able to support on-line order entry
DSL Partner Landscape
[COMPANY] Internal Use Only August 2000
Page 28
Non-Selling Partner
Selling Partner
Tiered Partner
Mature product Early adopters to late majority Medium margin
Target Markets Business requirement for “standardized” data communication Small to medium sized business up to T1 Large sized businesses to mulit-megabit
Implements, hosts or maintains customized solutions
consultative approach to selling for end-user applications
system/network design and engineering expertise
lead generator
customer base typically lacks internal IT department
reseller of equipment or services (routers, network management, internet applications, servers)
customizes solutions for hardware, software or communications services
sells, provisions, installs, and maintains CPE
able to design and install LAN/WAN and internet technologies
network equipment manufacturer or channel distributor
internet application developer
consultative approach to selling of end-user applications
mature two or three-tired distribution channel comprised of existing relationships with VARs and distributors
substantial back office infrastructure; able to support on-line order entry
IP Partner Landscape
[COMPANY] Internal Use Only August 2000
Page 29
Partner Acquisition
Map to Partner Models
Match Product Solution
Future View...Partners are defined as being unique and by the solutions they sell
Acquisition driven by end user needs, product solutions and partner business models
End Usershave
Business Problems
The Paradigm Shift
Map [COMPANY] products and solutions...
matched to appropriate partner...
based upon their business model...
which is determined by their end user relationships.
[COMPANY] Internal Use Only August 2000
Page 30
Product Fit (Lifecycle and
Solution)
BusinessModelProfile
End User Purchasing
Habits
The IdealPartner
The IdealPartner
The Focal Point
[COMPANY] Internal Use Only August 2000
Page 31
Action Plan
“Taking Care of Business”- Bachman Turner Overdrive
[COMPANY] Internal Use Only August 2000
Page 32
Key Recommendations
Implement proposed acquisition strategy and framework and develop detailed partner acquisition implementation plan
Develop acquisition criteria set(s) and compile target acquisition list(s) Define and implement end-user market research to identify trends and
changes in buying patterns/models and user requirements Define and implement indirect channel market research to identify
trends and changes in the VAR/Reseller community Develop partner cost-of-acquisition model(s) Incorporate relevant conclusions/recommendations from Partner
Productivity analysis into Acquisition Implementation Plan Leverage SEG2K program to facilitate targeting of prospective
partners based on end-user needs
[COMPANY] Internal Use Only August 2000
Page 33
Finalize 2001revenue forecastrollout and offering (s)
Partner AcquisitionImplementation Plan
Compile Partneracquisition target list
Develop Partneracquisition criteriabreakdown anddemographics
9-30-00 9-30-00 9-30-00
11-15-00 11-15-00 11-15-00
TBD TBD TBD
9-15-00
10-30-00 11-15-00 11-15-00 11-15-00
10-30-00
TBD
ION Frame Relay DSL
IP Services
Deliverables and Timeline
[COMPANY] Internal Use Only August 2000
Page 34
Critical Dependencies
ION End user demand generation programs developed to support Partner
acquisition Firm product offering and roll-out schedule Sales organization resourced to support acquisition efforts Resources available within database marketing to compile target lists Process exists for new Partner lead tracking and management Partner acquisition directly impacted by geographic rollout schedule and product
functionality Availability of DSL access to enable demonstration of ION capabilities
Commitment of sufficient resources to define, execute and maintain process for partner profiling and indirect channel and end user market research
Support from Finance to develop/maintain cost-of-acquisition model(s)
[COMPANY] Internal Use Only August 2000
Page 35
Appendix
“If I could save time in a bottle…”- Jim Croce
[COMPANY] Internal Use Only August 2000
Page 36
Corporate Solution Provider National or regional reseller organization that sell to Fortune 500
organizations. These organizations are usually national and have existing long term relationships with their end customers, Tends to be volume purchaser of product with full integration capabilities. Companies like Vanstar, Entex, CompuCom, MicroAge, CompUSA/Corporate Sales, Inacom, etc.
Vertical VAR Resellers who sell or consult with customers in specific market segments
such as medical, education, government, financial. Tec.
Industry Definitions
[COMPANY] Internal Use Only August 2000
Page 37
Industry Definitions
Aggregator Term used to describe large reseller organizations offering franchises to
smaller resellers and distributing first-tier products to these organizations under favorable terms by “aggregating’ their many smaller orders. Examples include MicroAge, Computerland and Inacom. Term is being used less frequently today, as the reseller agreements have changed to a “cost-plus” model (similar to distribution), rather than the royalty agreements typical of franchisers. Another factor: As the aggregators become more distributor-like, the leading distributors are competing for aggregation business with dedicated divisions. Many former aggregators are being referred to as Tiered resellers today, along with the leading national distributors.
Tiered Reseller Term previously used to describe the largest, most influential national
distributors such as Ingram Micro, Merisel, Tech Data, and MicroAge. They play in all product and technology areas and offer one-stop shopping to a broad range of resellers.
[COMPANY] Internal Use Only August 2000
Page 38
Systems Integrator Combination of professional services and expertise in hardware, software
and communications technologies. SIs maintain full financial and performance responsibilities for the entire project from design to post-implementation stages. Examples: IBM Global Services, Hewlett Packard, Andersen Consulting, EDS, AT&T, Ernst & Young, Digital, Unisys Integrate, Deloitte & Touche, AmeriData, Booz Allen & Hamilton, Memorex Telex, Alltell, Loral.
Other organizations often refer to as System Integrators are those companies who integrate components into system solutions and sell under their own brand names, These companies are also referred to as 2nd or 3rd tier OEMs. Build Your Own (BYO) VARs, and System Builders. There are several business models for these types of resellers ranging from distributor like practices to the typical reseller profile encompassing software application development, system development and integration.
Industry Definitions
[COMPANY] Internal Use Only August 2000
Page 39
Total Solutions Provider Non-retail organization which take title of products from a vendor or
distributor, add tangible value which is accounted for in the purchase price, then resell the turnkey/custom solutions which include hardware and software to end-users.
Enterprise Partner Working directly with IT departments and CIOs of Fortune 1000 companies,
these solution providers deal with large corporations. Research proves these are not only large solution provider companies, $25 million and above, but small organizations with sales of less than $1 million as well.
Solution Providers who sell into Small and Medium Businesses These companies specialize in customizing solutions, servicing and
supporting end user customers who categorize themselves as small (10 to 100 employees) and medium size businesses(100 to 999 employees).
Industry Definitions
[COMPANY] Internal Use Only August 2000
Page 40
Internet Solution Providers Traditional VAR or integrator that specializes in internet/intranet solutions. These
organizations must derive at least 40% of their total hardware, software and services revenue from web based solutions. Primary customers are entry-level e-business solutions to Small and Medium businesses.
ASP An Application Service Provider manages and delivers application capabilities to
multiple entities from a data center across a wide area network. Rather than sell solutions to customers, ASPs implement, host and maintain solutions for a fixed monthly fee.
Web Integrators Organizations that define themselves as full-service e-business partner for their
clients. Their expertise is technology implementation, strategy consulting and creative web marketing and branding. Web Integrators limit their involvement in hardware integration and reselling. They also tend to focus on larger sized, better-branded clients
Industry Definitions
[COMPANY] Internal Use Only August 2000
Page 41
Industry Definitions
IT Consultant Offers consulting services for information technology, but usually does not
sell hardware or software. Often overlooked by manufacturers of product when recruiting partners due to the non-product sales business model. However, this type of reseller is extremely influential in recommending and specifying specific technologies, products and brands.
ISV (Independent Software Vendor) Refers to companies who develop and provide software applications and
services often integrating software solutions from other vendors
[COMPANY] Internal Use Only August 2000
Page 42
Innovators - Technology Enthusiasts
Primary Motivation: Learn about new technologies for their own sake
Key Characteristics: Strong aptitude for technical information Like to alpha test new products Can ignore the missing elements Do whatever they can to help
Challenges: Want unrestricted access to top technical people Want no- profit pricing (preferably free)
[COMPANY] Internal Use Only August 2000
Page 43
Early Adopters - The Visionaries
Primary Motivation: Gain dramatic competitive advantage via revolutionary breakthrough
Key Characteristics: Great imaginations for strategic applications Attracted by high- risk, high- reward propositions Will commit to supply the missing elements Perceive order- of- magnitude gains — so not price- sensitive
Challenges: Want rapid time- to- market Demand high degree of customization and support
[COMPANY] Internal Use Only August 2000
Page 44
Early Majority - Pragmatists
Primary Motivation: Gain sustainable productivity improvements via evolutionary change
Key Characteristics: Astute managers of mission- critical applications Understand real- world issues and tradeoffs Focus on proven applications Like to go with the market leader
Challenges: Insist on good references from trusted colleagues Want to see the solution in production at the reference site
[COMPANY] Internal Use Only August 2000
Page 45
Late Majority - Conservatives
Primary Motivation: Just stay even with the competition.
Key Characteristics: Better with people than technology Risk averse Price- sensitive Highly reliant on a single, trusted advisor
Challenges: Need completely pre- assembled solutions Would benefit from value- added services but do not want to pay for them
[COMPANY] Internal Use Only August 2000
Page 46
Laggards - Skeptics
Primary Motivation: Maintain status quo.
Key Characteristics: Good at debunking marketing hype Disbelieve productivity- improvement arguments Like taking a contraire position Seek to block purchases of new technology
Challenges: Not a customer Can be formidable opposition to early adoption