Traditional ISV channel partners (see Note 1) are re-examining their business models as Software as a Service (SaaS) establishes itself as a mainstream computing phenomenon. However, they might not be changing fast enough: there is a shift in the nature of the channel itself, as emerging SaaS providers establish new and unusual channel relationships to reach their target markets.
This Strategic Perspective will use three recent examples of this phenomenon to examine the rising importance of non-traditional channel partners to the growth of SaaS. These examples highlight at least four different approaches to channel relationships that reach beyond typical IT ecosystem players such as VARs and systems integrators. These include financial services providers, industry associations, “big box” retail, and government agencies.
We will also address the following key issues with regard to non-traditional channel partners:
- What are SaaS providers looking for in a non-traditional channel partner?
- What benefits do non-traditional channel partners derive?
Are there specific SaaS solutions that are better suited for a non-traditional channel?
