The earliest days of a client’s digital transformation strategy can be the make-or-break time for the entire initiative.
Projects under the digital transformation banner may call for a company to reinvent its value proposition, drastically change its business model and overhaul its technology infrastructure. Such jobs are complex endeavors that engulf customers and partners alike and are easily derailed. Overcoming a bad start is likely to prove tremendously difficult, given the high project failure rate some industry consultants have cited.
Insight Enterprises, a systems integrator based in Tempe, Ariz., recently recognized a handful of clients who have met with success on their digital journeys. The companies capturing Insight’s Evolve Awards include Anheuser-Busch InBev, Ardent Health Services and Banner Health.
The companies’ projects vary in focus. Anheuser-Busch’s effort involved developing a global platform for applications DevOps, a UX/EX design system and an AI- and augmented reality-based bottle counting offering. Ardent’s LHP Hospital Group, meanwhile, modernized its data center infrastructure, with Insight providing managed storage and professional services. Banner Health, meanwhile, focused on transforming its IT supply chain processes.
Yet, the projects share a few things in common: they applied key principles to get their digital transformation strategies off the ground and moving in the right direction. Here’s a closer look at five practices:
Understanding, refining and mapping a client’s vision
Stan Lequin, vice president and general manager of digital innovation at Insight, said understanding the client’s vision at the beginning of the project is crucial. And, along with that, there must be an understanding of the business outcomes the client is hoping to achieve.
Early on in a digital transformation initiative, Insight meets with a customer’s business, IT and security representatives in an ideation session. As the “connection point” linking those teams, Insight helps refine the client’s vision and create a project roadmap.
“We help them map out the art of the possible,” Lequin said.
Creating a minimum viable product
The next key practice of a successful digital transformation strategy is translating the customer’s vision into a minimum viable product, or MVP. AN MVP is part of an iterative process that lets customers get an early glimpse of what a particular digital innovation — a new application, for example — is going to look like. An MVP could be a wireframe of an application, for example.
“It is something that proves out, without a massive expense, the use case of what they are trying to do and lets us refine it and enhance it,” Lequin said. Projects that use the MVP approach to quickly demonstrate what the customer has in mind are the ones that “move ahead in a big way,” he added.
Securing executive sponsorship
The ability to secure executive sponsorship is another common thread among successful digital transformation projects and a characteristic of the award-winning Insight customer initiatives.
“Every single one has had a sponsor,” Lequin said. “This is one of the most critical things.”
Some projects had CIO sponsors, while others had leaders from the business side of the enterprise, he noted.
A successful digital transformation strategy also calls for change management. Organizations committing to such projects are typically not just building new systems but redefining themselves as digital businesses. It’s a process that requires careful guidance.
“We have manufacturing clients who are turning into software companies,” Lequin said. “It’s a huge change that happens when you move from analog to digital.”
To help customers deal with change, Insight provides training on DevOps concepts and new ways of using cloud technologies, for example. The training leads into organizational change management. Insight helps clients develop a plan to drive culture change with the enterprise.
Providing ongoing management
A digital transformation project never quite ends. Organizations must continue to adapt and evolve amid new customer demands, emerging competitive threats and changes in the regulatory environment. In time, the initial application will need to be expanded and new applications built.
Lequin said many customers will move into a managed stage to keep the digital transformation strategy moving forward. Insight, for example, offers DevOps as a managed service, helping customers roll out their next applications using DevOps concepts. The company also provides application development services.
Conclusion: Don’t start with technology
A digital transformation strategy goes through a number of phases. The actual steps may vary somewhat, but they shouldn’t start with technology. Digital technology is the enabler, but not the objective. The business vision comes first.
“We don’t get to the architecture or technology discussion until we work through building out that vision,” Lequin said.
Ahead of its 2019 global partner summit, Dell EMC isn’t veering from its core channel priorities.
Since the formal launch of the Dell EMC Partner Program in 2017, the company’s channel strategy hasn’t seen any significant overhauls. In February, which marked the start of Dell Technologies’ fiscal year 2020, Dell EMC revealed it would introduce a handful of partner program updates. Changes included simplification to the program’s tier requirements and market development fund processes.
“The overall framework and structure of the program is very consistent. We actually feel like our strategy is working when you see the overall results that we have,” said Cheryl Cook, senior vice president of global partner marketing at Dell EMC, in an interview.
Cook pointed to several areas within Dell Technologies’ fourth-quarter and fiscal year gains where partners played an important role. “From a channel perspective, if you look at our overall business in Q4, the channel grew 14% year on year, and for the entire fiscal year that’s up 17% year on year,” she said.
The company’s distribution business continues to be its fastest route to market, outgrowing the rest of the channel, Cook noted. She said distribution grew by 16% for the fourth quarter and 21% for the fiscal year.
Dell EMC partner companies brought in about 16,100 new customers in the fourth quarter. That caps off the fiscal year of about 63,200 total new customers, Cook said.
Additionally, deal registration volumes increased by 14.5% in the fourth quarter. “We had a little bit over 121,000 deals approved in the quarter, and, for the [fiscal] year, we had over 487,000 deal registrations,” she said.
In terms of the portfolio, Dell EMC server orders were up 21% year over year for the fourth quarter and 32% year over year for the fiscal year, Cook said. “It’s clear that we are hitting an opportunity in the market where customers are investing and modernizing their infrastructure, and, as the market moves to software-defined offerings, we have the market-leading franchise in the compute offering.”
Storage orders weren’t as strong. Orders increased 3% year over year for the fiscal year, Cook said. The company, however, maintains an optimistic storage outlook. “I think all of those efforts [we have made] seem to be paying off. We have returned [our storage] business to growth, so that is going to be an important area of focus for us,” Cook said.
Meanwhile, Cook said the VxRail business is growing at triple digits, “an expression of the opportunity of aligning VMware and Dell EMC and how we can bring the power of these strategically aligned businesses together.”
Since merging with EMC, Dell EMC has touted the cross-sell opportunities for its partner base. The vendor continues to encourage its partners to sell more than one line of business. “That is an area that we continue to reinforce and to point to for partners,” Cook said. She noted that the number of Dell EMC partner firms selling more than three lines of business were “up significantly this year.”
Partners are realizing that there is a “natural opportunity” to sell across multiple lines of business, she added.
The Dell EMC Global Partner Summit 2019 will be held in conjunction with Dell Technologies World from April 28 to May 2 in Las Vegas.
Synechron, a consulting firm focusing on financial services, is applying emerging digital strategies such as asset tokenization in the rapidly growing wealth management industry.
The New York-based company earlier this month launched its Wealth Tech Accelerator program, which aims to marshal technology, data science and analytics in support of wealth management firms. The scope of Synechron’s endeavor ranges from developing new blockchain-based investment channels to improving the client onboarding process.
Firms in the wealth management industry are looking to attract and retain high-net-worth investors, which represent a steadily expanding pool of assets. According to tax and advisory firm EY, net investable assets already top $55 trillion globally and are expect to grow to nearly $70 trillion by 2021. “Wealth managers should be anticipating and seizing this market potential and enormous growth now,” noted EY’s wealth management outlook.
Asset tokenization to open investor opportunities
The asset tokenization component of Synechron’s Wealth Tech Accelerator could potentially, over time, cultivate a still larger pool of investors and capital. Asset tokenization fractionalizes the ownership rights to different types of assets — from fine art to real estate — into digital coins, or tokens, via blockchain. Blockchain is used to manage those rights. Tim Coates, who heads the blockchain business at Synechron, believes asset tokenization will create new investment opportunities in the wealth management space, with smaller investors, in particular, standing to benefit.
“People excluded because of lack of size can buy into non-traditional assets,” Coates noted.
Coates referred to Synechron’s asset tokenization accelerator as a concept it is demonstrating for customers, rather than a product it is ready to monetize. The company’s asset tokenization demo is based on the Ethereum public blockchain and uses open source protocols. Those components include Harbor, a blockchain-based platform and compliance protocol for tokenized securities, and 0x, a protocol for decentralized exchanges — peer-to-peer marketplaces for asset-backed tokens.
The objective for asset tokenization technology is to provide the controls and feature sets regulated securities require, Coates explained.
Client onboarding taps OCR, NLP, RPA
Synechron, meanwhile, taps optical character recognition (OCR), natural language processing (NLP) and robotic process automation (RPA) to ease the client onboarding process. In this aspect of the company’s wealth management tech accelerator, OCR and NLP are used to scan a new customer’s ID and extract the relevant data. An RPA-created workflow then automatically populates the wealth manager’s client onboarding forms with the data, noted Diana Kearns-Manolatos, global head of marketing at Synechron.
This accelerator, which uses technologies including OpenNLP, focuses on both account onboarding and know your customer (KYC) requirements. The idea behind this accelerator is to help financial institutions collect KYC and due diligence information without making the process overly cumbersome, according to Synechron.
Indeed, a wealth manager’s digital customer acquisition process is especially important since it has the dual purpose of collecting important customer data and improving the customer experience, Kearns-Manolatos said.
“It is really the first impression for a new customer,” she said.
Hewlett Packard Enterprise has rolled out a new technical enablement resource that targets HPE partner solution architects.
The Tech Pro Community, launched globally today, aims to connect solution architects with training and the vendor’s internal presales team. The move in part supports HPE’s focus on solution selling, as well as what it views as the growing importance of the solution architect role.
“[HPE recognizes] there is a big shift happening in the way customers buy IT. …. Increasingly, the line-of-business leaders are involved in the IT decisions, and what they are buying is business outcomes,” said Brian Beneda, senior manager of global technical enablement at HPE, in an interview.
Beneda said that the solution architect role, which collects customers’ business requirements and translates them into technical solutions, is critical in a purchasing model that emphasizes business outcomes.
HPE Tech Pro Community a hub for solution architects
The Tech Pro Community is open to all HPE partners that have the minimum of an HPE Accredited Technical Professional certification, according to HPE. After joining the community, online users can access educational tracks around HPE technologies and industry trends. Members can also use the platform to earn HPE Accredited Solution Expert (ASE) and Master ASE certifications.
Beneda noted that the Tech Pro Community pulls together what was previously a fragmented set of technical training resources. “What we haven’t done up until now is make it easier for a channel partner solution architect to get access to all the training, the expertise, the content and the people inside of HPE that they need to exercise the power of [HPE] in front of their customers,” he said.
The training available through the Tech Pro Community is the same that HPE provides its internal teams, he added.
HPE also said the Tech Pro Community gives members a chance to connect with other partner and internal solution architects, through both online collaboration and in-person events. Beneda said the vendor is trying to “cross-pollinate” its partner and internal solution architect communities.
HPE’s transition to solution-oriented sales
HPE has been refocusing its HPE partner training on solution architects and solution selling for about a year, Beneda said. The introduction of the Tech Pro Community is a result of those efforts.
“What we had done in the past was very product-focused. … We will continue to have these specialist tracks. But the transition we are seeing from a market perspective is the demand” for the solution architect role, Beneda said.
MSP software provider ConnectWise has revealed plans to be acquired by Thoma Bravo, a private equity investment firm.
According to ConnectWise, the transaction is expected to close on Feb. 28. Following the transaction, ConnectWise COO Jason Magee will become the company’s CEO. Arnie Bellini, ConnectWise’s founder and CEO, will step into an advisory role.
“After five years of thoughtful consideration, evaluation and interviewing [private equity firms], we selected Thoma Bravo, because they are very excited about” ConnectWise’s strategies, partner community and vision, Bellini said in an interview.
Thoma Bravo’s portfolio contains notable MSP software companies, including remote monitoring and management (RMM) vendors Continuum and SolarWinds. Thoma Bravo also owns security and data protection vendor Barracuda Networks, which early this month revealed plans to acquire Avast’s RMM software, Managed Workplace.
Other Thoma Bravo-acquired companies include security vendors McAfee, Centrify, DigiCert and Imperva; networking vendor Riverbed; and visual analytics company Qlik.
Bellini said one of the reasons ConnectWise selected Thoma Bravo was its expertise in the software-as-a-service industry.
“If you look at [Thoma Bravo’s] portfolio, current and past, they have an amazing track record — I would say the best track record — of creating success with software-as-a-service companies,” Bellini said.
What’s ahead for ConnectWise users
ConnectWise won’t veer from its commitment to its MSP software user base, Bellini said. Thoma Bravo and ConnectWise have co-developed a five-year strategic plan that will adhere to ConnectWise’s established vision and roadmap, he said.
Magee, who joined ConnectWise in 2011 and was appointed COO in 2016, said ConnectWise partners can expect to see the cybersecurity offerings outlined at the 2018 IT Nation Connect conference. Additionally, ConnectWise will focus on providing advanced education and go-to-market tools for as-a-service businesses, as well continue developing a “connected ecosystem” around its platform.
Bellini also noted acquisitions on the horizon. “We made four acquisitions last year, and we plan on making some nice acquisitions now that we also have the benefit of Thoma Bravo,” Bellini said.
ConnectWise’s 2018 acquisitions included HTG Peer Groups, managed security services provider Sienna Group, and cloud software development firm HashInclude Computech. In 2018, the company also invested in Perch Security, a threat intelligence vendor.
As part of the Thoma Bravo deal, ConnectWise will undergo an organizational restructuring, Bellini said. The company will eliminate 110 positions and add 70 new positions to align to the strategy co-created with Thoma Bravo.
“In year two, three, four and five of our strategy, we are going to be adding … new jobs and opportunities here at the company,” Bellini said.
Bellini noted that ConnectWise is taking an active role in helping employees affected by the organizational restructuring land on their feet. He said ConnectWise has hired outside consultants and is contacting recruiting firms to place laid-off employees in new career opportunities.
ConnectWise IT, the Tampa, Fla.-based IT services provider that had originally developed ConnectWise’s software, is not part of the Thoma Bravo acquisition, Bellini said. He said he will be rebranding ConnectWise IT and continue to oversee the company.
An important part of education is determining what you need to learn. Microsoft partner training aims to help service providers in that regard, launching a self-assessment tool Feb. 15.
The tool, dubbed the Transformation Readiness Assessment, lets partners figure out the “next steps to increase [their] proficiencies and extend … practice development and service opportunities,” according to Microsoft. The tool assesses partners’ business and technology capabilities and then steers them toward the appropriate training and enablement resources.
Melissa Mulholland, director of cloud profitability at Microsoft, said the partner assessment tool’s business section covers such topics as sales and marketing, while the tool’s technical solution component measures the partner’s standing in AI and business apps among other areas. The partner tool resides on the Microsoft Partner Network.
“The assessment tool is a way to measure [a partner’s] capability and areas where a partner can grow,” Mulholland said.
Microsoft, meanwhile, is releasing new resources to help partners bolster their skills. For example, the company recently published a playbook for partners that focuses on recruiting, hiring, onboarding and retaining talent. Mulholland said the new playbook ties into the assessment tool in that it provides resources partners can use to improve human resources “capabilities that may need additional development based on the results of the assessment.”
With the new tool and playbook in place, the online platforms that deliver Microsoft partner training are getting a new look. Microsoft’s Training Center, a partner learning portal, has been refreshed. The portal offers training options based on a partner’s role — such as administrator, architect or developer — and the Microsoft technology they wish to pursue. Mulholland said Microsoft will continue to add content and additional roles such as data scientist.
The long-term Microsoft partner training vision, however, is based on the MS Learn platform. MS Learn has been geared primarily toward technical roles and offerings such as Microsoft Azure. But MS Learn has recently added content for Dynamics 365, and Microsoft 365 content is under development, according to Mulholland.
MS Learn eventually will serve as a one-stop-shop for training and certification across all Microsoft products and solutions, and the various roles associated with those products and solutions, Mulholland explained.
IBM is doubling down on its channel ecosystem strategy this week with a raft of partner program updates.
The IBM ecosystem strategy was launched last year to engage a broad range of partner business types. Those included resellers, managed services providers, ISVs, developers and cloud services providers. Building on 2018 investments, IBM this week rolled out a number of new partner resources, many of which focus on enablement and collaboration.
Among the new resources was a partner-to-partner tool, IBM Business Partner Connect. Partner Connect uses Watson technology to help link up partners across the ecosystem to collaborate on customer accounts, said Dorothy Copeland, vice president of the North American IBM partner ecosystem, in an interview. For example, she said if an analytics-focused partner has a client interested in blockchain, Partner Connect could help identify IBM firms with blockchain expertise.
“A lot of times we will see our IBM partners … subcontract another partner underneath them in order to provide the skill set that they need for their clients,” Copeland said.
Training, cybersecurity enablement
On the training and certification front, IBM introduced the IBM Skills Gateway training platform, Copeland said. IBM Skills Gateway provides sales and technical education for partners and IBM’s internal sales team.
“One big piece of our focus is making sure … that we are providing our employees and … our partners the skills-building that they need,” Copeland said.
Copeland also noted forthcoming Red Hat training. IBM stated its intention to acquire Red Hat for $34 billion in November 2018. She said the Red Hat training will focus on products that IBM and Red Hat currently offer together, such as IBM Cloud Private on top of Red Hat OpenShift open-source container application platform.
“That’s a key area that we want to make sure we are enabling partners,” Copeland said of the Red Hat training.
Additionally, IBM rolled out a Managed Security Services Provider (MSSP) Program. The MSSP program aims to help partners develop cybersecurity businesses and is open to all partners that have either an active reseller or embedded solutions agreement with IBM, according to the vendor. Under the program, partners can earn financial rewards dubbed the Know Your IBM Security Sales Incentive.
Security is a high-growth area for many IBM Business Partners in North America, Copeland noted.
Other IBM partner program developments
Additional IBM partner program updates revealed this week included the following:
- IBM Cloud Paks, which IBM said are container software packages with support for using open standards in hybrid and multicloud deployments. IBM said Cloud Paks are designed for Kubernetes and use IBM Cloud and IBM Cloud Private.
- Software deal registration with priority access to special bid pricing. Copeland said partners have asked the software deal registration since she joined IBM about 18 months ago.
- My PartnerWorld, a means for partners to manage various digital PartnerWorld tools in one place, IBM said.
- ‘In It to Win It’ incentives for Power, Z and IBM LinuxOne.
- New co-marketing resources for partners that embed IBM technology into their offerings.
- Value Package 2.0 support bundle, which lets partners double their IBM Cloud credits. Value Package 2.0 also provides access to a development sandbox environment, discount vouchers for select education events and expanded subscription discounts.
- The Cloud Digital Technical Engagement Program with support for product demos and tutorials.
If you’re a channel firm faced with recruiting challenges, perhaps it’s time to look outside the traditional talent pool.
That’s the advice of partner executives who are adopting innovative approaches for hiring tech talent. Channel firms are addressing IT skills shortages in a number of ways, such as launching IT apprenticeship programs. But the most basic means for overcoming recruiting challenges, they said, is to broaden the scope of possible candidates.
“There are only so many strategies for addressing [the cybersecurity] talent gap, and one of them is definitely to look at nontraditional candidates,” said Eric Foster, CISO at Fishtech Group, a cybersecurity specialist located in Kansas City, Mo.
“I would definitely advise people to throw a lot of your preconceived notions about what the right candidate looks like out the window,” he added.
Revise your IT hiring paradigm
Foster said channel firms should look beyond standard work and educational qualifications to evaluate “a much wider range of candidates.”
He said Fishtech years ago decided to remove almost all requirements from job openings, including educational, certification, or work experience requirements.
In Fishtech’s staffing efforts today, Foster said he now looks for “attitude and aptitude” in candidates. “I will take that over experience, over certification, over the rest,” he said.
Amy Kardel, co-founder of Clever Ducks, a managed services provider based in San Luis Obispo, Calif., held a similar view on hiring tech talent. “We can train the technical skills. It is the attitude and soft skills, I think, that sometimes are the hardest to find,” she said.
Fishtech’s training methodology aims to accommodate new hires that lack conventional cybersecurity backgrounds, Foster said.
‘Always be recruiting’
Kardel advised channel firms to look for talent everywhere, especially out and about in everyday life. She is always in recruitment mode, she said. That includes when visiting coffee shops, where a barista might show desirable customer service skills.
“I think Uber drivers are another great pool,” she noted. “I have a friend who is always recruiting Uber drivers, because obviously they are showing hustle, too.”
Foster said Apple’s Genius Bars and Best Buy’s Geek Squads are great recruitment grounds. Those employees tend to have solid experience working with customers and trouble-shooting problems.
“There are a lot of [everyday situations] where you can always say, ‘Hey, there is opportunity over here. Come take a look,’ ” Kardel said.
“You know that line from Glengarry Glen Ross: ‘Always be closing’? The analogy to that is, ‘Always be recruiting,’ ” she added.
A new year is upon us. As you fine-tune your plans, consider these seven business and technology trends for 2019.
A shifting competitive landscape
From ISVs to cloud ecosystem consultants, unconventional partner types will continue to gain ground in 2019. Forrester Research’s Jay McBain says ISVs will be the fastest growing partner type, expanding from some 10,000 to more than 1 million firms by 2028. Channel partners can collaborate with the emerging players, compete or acquire.
More M&A on the way
With that latter strategy in mind, expect 2018’s blistering merger and acquisition pace to continue into 2019. Managed service providers and public cloud consulting specialists will remain popular acquisition targets, but the market might shift to the buyer’s side later in the year.
Apprenticeships make a comeback
M&A deals, however, aren’t the only way to gain the expertise needed to compete. Look for the continued rise of IT apprenticeship programs in 2019. Such programs aim to cultivate technicians, software developers and cybersecurity specialists. Channel partners are beginning to develop apprenticeship programs, partnering with state and local governments, trade schools and other organizations.
Demand for cloud cost management
Helping customers manage growing cloud deployments will continue to keep partners busy as one of the top technology trends for 2019. Their top chores will include working with clients to keep cloud budgets under control, a task complicated by complex, multi-cloud environments. How big is the issue? A Softchoice survey found 57% of IT leaders said they exceeded their cloud budgets.
Edge computing gets smarter
While cloud becomes the innovation foundation for cloud and blockchain, partners can also expect edge computing technology to continue its drive toward greater intelligence. More compute and AI capabilities will become embedded in edge devices, leading to an “intelligence of things.”
Mixed signals on emerging tech
Blockchain and AI continue to capture the imagination, but the technologies will be subject to uncertainty in 2019. Blockchain projects are underway in verticals from financial services to healthcare, but the path the technology will ultimately take and whether it will become as transformative as predicted are still unknowns. AI, meanwhile, attracts interest from partners, yet some struggle to deploy the technology.
AI for the masses?
Technology prognosticators at Deloitte consider the democratization of AI as one of the key technology trends for 2019. AI services offered through public cloud platforms will simplify AI development and broaden market acceptance, according to the consulting firm. Deloitte also points to 5G as an important development, noting U.S. business will soon need assistance determining whether the technology is a fit.
These business and technology trends for 2019 point to a complicated year ahead for MSPs, cloud consultancies and other IT service providers. Non-traditional rivals and new partner combinations born of M&A activity will make for a somewhat unsettling environment. Cloud consulting, migration and management will continue to generate opportunities, especially for partners who can address perplexing cloud cost management issues. And emerging fields such as AI and blockchain may or may not bear fruit for partners this year.
Citrix’s continuing transition into the cloud business is getting a reinforcing push from Citrix partners, with newcomers playing a role.
The company transacted business with more than 6,100 partners in 2018, 900 of which were first-time Citrix partners. That’s about 15% of the transaction volume. Among the new partners are many born-in-the-cloud partners and channel companies that have built a solid business moving customers’ workloads from on-premises systems to the cloud — with Microsoft Azure the typical target, noted Craig Stilwell, vice president of worldwide partner sales at Citrix.
“A lot of those [partners] have a strong Microsoft skillset,” he said.
Stilwell said the Microsoft skillset translates well into Citrix technology. Indeed, Citrix and Microsoft have a long-standing technology alliance. That alliance has multiple threads including the ability to offer customers virtual desktop infrastructure with Citrix Cloud services on Microsoft Azure. Citrix Cloud is a platform that lets organizations create digital workspaces for users from a single console.
While Citrix and Microsoft offer technology integration, the companies also aim to coordinate channels as well. Citrix Solution Advisors and Microsoft service providers, for instance, can tap the Azure Marketplace to sell a combined offering consisting of Citrix Workspace, Microsoft 365 licensing and Azure cloud capacity. To further underscore the channel partnering point, Gavriella Schuster, corporate vice president, One Commercial Partner Organization, at Microsoft, was on stage at Citrix Partner Summit 2019 to talk about the companies’ collaboration.
Citrix, meanwhile, set the channel groundwork for the cloud direction in 2018, revamping its partner program with subscription revenue and Citrix Cloud in mind. At Citrix Partner Summit 2019, held in January, the cloud focus continued as an important theme. Stilwell said products such as Citrix Workspace, which is powered via Citrix Cloud, will dramatically expand the addressable market for Citrix technology. Citrix’s traditional desktop and application virtualization products meet about 30% of a customer’s desktop computing needs. But with Citrix’s cloud-based offerings, the other 70% is in now in play.
“This is the year we really go beyond virtualization,” Stilwell said.
Cloud and subscription-based revenue are already making an impact at Citrix. The company’s SaaS business grew more than 200% in 2018. Another data point: The Citrix Service Provider business crossed 1.7 million active-user-per-month threshold at end of the 2018. Citrix Service Provider companies, a partner program subset, offer desktop as a service, application hosting and other subscription-based technologies.
“The service provider business is mostly a subscription consumption business,” Stilwell said, noting that business is growing 33% year over year.
To support its cloud and subscription momentum, Citrix has tweaked its rebate program to reward Citrix partners that get customers up and running on Citrix Cloud as quickly as possible. The idea is to focus on customer adoption and cloud consumption.
Citrix, Stilwell said, has moved “some incentives away from on-premises, perpetual maintenance renewals and shifted that toward driving real adoption, real usage of Citrix Cloud.”
Citrix partners span enterprises, SMBs
Citrix’s ‘beyond virtualization’ initiative is getting a lift from a range of partner types. At one end of the spectrum, large global systems integrators are helping Citrix land projects. DXC Technology, for example, is teaming with Citrix at Saab on a digital workspace project that relies on Citrix Workspace as a key component.
“We’ll … continue to work more and more with large global systems integrator companies like DXC,” Stilwell said. “However, that doesn’t mean we are going away from the regional systems integrators and regional partners that we work with.”
Indeed, while the global integrators bring in large-scale projects with enterprises such as Saab, Citrix Service Provider companies will focus more on small and medium-sized businesses.
“We will continue to expand on both fronts,” Stilwell said.