Application service providers (ASPs) have needs unlike any other channel partner. Vendors that don`t recognize their unique needs and use the same techniques they do with their traditional channel partners risk ineffective ASP partnerships, according to IDC.
"ASP partners don`t fit neatly into a vendor`s more traditional partner definitions and can`t be managed by generic partner programmes," said Stephen Graham, vice president of IDC`s Global Software Partnering and Alliances group. "Partner programmes designed to meet the needs of the traditional channels are not likely to focus on areas ASPs deem important. ASPs require measures that are related more to business intention."
When working with other types of partners, software vendors often employ strategies that centre around increasing partner satisfaction to increase business. According to IDC, this approach is unlikely to work with ASPs.
"This approach is likely to improve a vendor`s image among partners and result in the ASP recommending the vendor to others, but it`s unlikely to lead to increased business-building activity," Graham said.
IDC recommends software vendors that want to drive business growth with an ASP develop a strategy that focuses on just that. According to IDC, the strategy should include four main components:
Develop programmes that potentially improve their sales
Differentiate their programmes by developing a high-quality ASP-specific product
Standardize programmes focused on providing product information
Hold programmes focused on effective advertising, co-op marketing, and market development funds
"Developing a partnering investment strategy that is aligned with the desired objective will help vendors enhance overall partnering effectiveness and efficiency," Graham said.
IDC recently published Building Better Partner Programmes for ASPs (IDC #B23682). This bulletin analyses the differences between managing ASP partner programmes from traditional programmes. The bulletin is based on a survey of approximately 200 ASPs. It includes insights on appropriate partnership objectives, key issues for building an effective value proposition for partner recruitment, areas that need to be addressed in successful ASP partner programmes, and areas to focus program investment.
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International Data Corporation (IDC)
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