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Traditional Channel Vs Shadow Channel

Shantaram Shinde, Channel Business Head, Netmagic – On State of Channel Partners in 2019

Most business buyers are hiring channel partners and consultants to implement their projects, bypassing their internal IT departments in many cases. However, instead of using traditional IT resellers, they’re working more with new types of partners that make up “shadow channels.”

Here are the different types of shadow channel partners, according to Experts :

XaaS Ecosystem Consultants: Line of business experts who generally anchor their practice around a select vendor(s), and understand cloud-driven best practices.

Industry-based Professional Services Firms: Accounting, legal and marketing firms are becoming IT services companies. For every $1 spent on a SaaS platform there is $4 in high margin services business these firms can go after.

Independent Software Vendors (ISVs): There are now 100,000 ISVs that are using SaaS platforms to offer their solutions in the cloud, up from 10,000 10 years ago.

Born-In-The-Cloud Firms: There are 10,000 companies with specialized skills that offer technology solutions in the cloud only. They frequently partner with other shadow channels to deliver their solution to customers.

Startup Community: These companies are well funded and disrupt traditional markets with unique technology or an approach to the market that solves business problems in a new way.

System Integrators: The top SI firms, such as Accenture and PWC, are investing billions of dollars in developing their digital transformation services, and they are now focusing on the midmarket in addition to the Fortune 2000.

Managed Services Providers:  Almost a quarter of companies  have outsourced to MSP that own the technology and business application for their client companies.

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