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A Path To Profit

Predictable annuity revenue is the lifeblood of all channel partners.

Historically, channel partners could sustain their recurring revenue opportunities, largely consisting of OEM maintenance and support agreements, through their existing supply chain OEM and distribution partners. However, the IT channel continues its evolution from a product to a consumption / data-centric market place, creating a significant shift in the way that business partners meet the vacillating needs of their customers. Channel partners must bring value in the data they manage and use to service their customers. Partners who successfully rise to the challenge presented by today’s evolution, position themselves to not only survive, but to thrive in the new data-centric marketplace of tomorrow.

Often recognized as “money in the bank” at the start of each new fiscal year, partners who invested minimal effort could still expect to capitalize on 60-70% of the renewals that resulted from prior year’s sales activities. However, as the market began to present more opportunities possessing only subscription or cloud technologies, those partners who invested to help their customers not only acquire, but maintain and renew their annuity agreements began to see their businesses prosper.

A strategic approach to annuity revenue streams is critical to long term channel partner success. Partners deploying solutions focused on helping their customer manage their entire IT asset environment are seeing significant improvements in annuity revenue and profit. The value spectrum is shifting importance from an organizations ability to ship, install and deploy technologies to its ability to aggregate, manage and maintain data specific to its annuity renewal opportunities as well as its ability to proactively engage and consult with its customers regarding renewal strategies.

TRAX is helping our partners create a more intimate experience for their customers, increasing the customer’s dependency on the partner’s ability to mitigate reactive or missed renewal opportunities, and build comprehensive strategies around the management of their annuity agreements.


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