IT in Canada March/April 2015

MICHELLE DE HERTOGH

Re-defining the channel: The changing partner landscape P.20

NANCY HARRIS

Home-grown solutions P.17

March/ April 2015 VOLUME 6 NUMBER 2

Publication Mail Registration Number: 42169527

INSIGHT FOR TECHNOLOGY PROFESSIONALS

OPEN FOR BUSINESS The FCC’s net neutrality ruling will change the face of the Internet.

www.itincanadaonline.ca

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Contents

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Vol 6 No 2 March/April 2015

DEPARTMENTS

4 Editorial 6 News

Our roundup of news stories

7 FEATURES

8 Digital collaboration in 140 characters or less

New updates to Twitter will help to improve collaboration amongst users

10 Helping consumers make informed decisions

Buyer beware. Eric Jacksch reports on why consumers should take the time to read the fine print

17 Home-grown solutions

Sage’s Nancy Harris explains why inclement weather shouldn’t spell the end of productivity for SMBs

20 Reinventing the channel – Part 2

In the second part of a three-part series, Michelle De Hertogh explores the IT channel’s changing partner landscape

13

COVER STORY: Open for business

The FCC’s net neutrality ruling will change the face of the Internet.

Robert Neivert of Private.me provides an in-depth analysis of the decision, and discusses what it means for businesses and consumers

Online Extras: www.itincanadaonline.ca

17

Missed an issue? Misplaced an article? Visit www.itincanadaonline.ca for a full archive of past IT in Canada Online issues, as well as online extras from our many contributors.

March/April 2015 IT in Canada Online / 3

EDITORIAL INSIGHT FOR TECHNOLOGY PROFESSIONALS

EDITORIAL ACTING EDITOR: MARK DAVID

905-727-4091x230 mark.david@iticonline.ca

CONTRIBUTING WRITERS: ERIC JACKSCH, MICHELLE DE HERTOGH SALES VP, BUSINESS MEDIA STRATEGY: MARCELLO SUKHDEO

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PUBLISHER’S MAIL AGREEMENT: 42169527 IT in Canada Online magazine is published six times per year. All opinions expressed herein are those of the contributors and do not necessarily reflect the views of the publisher or any person or organization associated with the magazine. Letters, submissions, comments and suggested topics are welcome, and should be sent to publisher@iticonline.ca

www.itincanadaonline.ca REPRINT INFORMATION

Social spotlight To say that social media has become a crucial part of our daily lives would be no understatement. Every day, millions of people around the world share information, news stories, and of course, memes across various social media platforms. The business world has also gotten on board with the social media revolution, weaving social media usage into their framework as a means of interacting with customers and promoting new products and services.

But there is far more to these platforms than allowing for the seamless transfer of cat pictures and videos, as entertaining as they are. Short messaging service Twitter has recently added some new features to their framework, including the ability to send group direct messages. Twitter Canada’s Christopher Doyle explains more on page 8.

A recent ruling passed by the FCC will see the Internet evolve from a purely informational service to a vital telecommunications platform, known as Title II status in the United States. The decision was met with an outpouring of support from some technology firms, but others are crying foul over it. Robert Neivert of Private.me sheds some light on this situation in our cover story on page 13.

In the latest installment of Security Shelf, Eric Jacksch delves into a major issue that has arisen with certain consumer products. Recent news has shown that some of them have the Big Brother-esque ability to spy on their owners and record their conversations without their knowledge, which has sparked some controversy. Lean how you can become a more informed buyer on page 10.

Bad weather and small business productivity do not mix, forcing employees to work remotely. While some believe that working from home can hinder an enterprise’s progress, service provider Sage has developed solutions which ensure that SMBs won’t miss a beat.

Nancy Harris dispenses some “Sage” advice on page 17.

Finally, Michelle De Hertogh continues her exploration of the IT channel on page 20, this time focusing on the changing partner landscape.

Regardless of which social media platforms you use, we hope that you “Like” and “Share” this issue.

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IN THE NEWS

Android goes to work

A

s mobility becomes a crucial part of daily workplace functions, many app and platform developers are releasing new products and services designed exclusively for business use. Google is the latest company to make the jump into the world of workplace mobility.

Google has designed a new set of tools for its Android mobile platform designed with office use in mind. Known as Android for Work, the new release assists those who use Android-enabled mobile products, with the intent of transforming them into devices that can balance work-related and personal use.

The launch of Android for Work puts Google into a heated battle with other mobile developers, including Microsoft and BlackBerry, both of which have been actively targeting the business market for several years. Apple

6 / IT in Canada Online March/April 2015

has also joined the fray, partnering with IBM to create its own business platform.

“Over a billion people today carry Android smartphones – devices that are more powerful than the computers we used just a few years ago,” wrote Rajen Sheth, director of product management for Android and Chrome for Work on the official Google for Work blog.

“For many, these phones have become essential tools to help us complete important work tasks like checking email, editing documents, reviewing sales pipelines and approving deals,” Sheth continued. “But for the majority of workers, smartphones and tablets are underutilized in the workplace.

Their business and innovation potential remain largely untapped.”

While the platform is being released now,

Google first announced its plans to conceive Android for Work nearly a year ago. The last eight months saw the company develop, experiment with and fine-tune the product for consumer use.

Among the many tools included with Android for Work is the ability to separate work and personal use by creating different profiles for each. This prevents the information stored under their personal profile from falling into the wrong hands.

Smartphones running Android’s Lollipop operating system will be the first to receive access to Android for Work, while those operating older versions of Android will be able to run the platform by downloading an app. Furthermore, a new section dedicated to enterprise-focused apps will soon be added to the Google Play store.

IN THE NEWS

Severing ties

A

s the world of connectivity continues to Technology allows for faster, more simplified connections between people, platforms and devices. However, a new initiative put forth by Microsoft will put an end to some well-established links.

According to a ZDNet report, Microsoft has announced that it will soon discontinue the integration of Facebook and Google Chat in its Outlook.com online email platform. Microsoft later went on the record and stated that the reason for severing ties with Google Chat was due to Google’s decision to terminate the chat protocol currently used by Google Talk.

Developers from Google have stated that Google Talk has been replaced with Google Hangouts, with the latter not being compatible with Extended Messaging and Presence Protocol (XMPP). XMPP is an open-sourced platform that serves as the Internet Engineering Task Force (IETF) standard for instant messaging services.

“We understand that this may disappoint some of our customers, but we hope that

you’ll try Skype for Outlook.com chat, voice and video calling, so you can take advantage of the more robust ways to keep in touch with friends and family,” Microsoft said in an email sent to its Outlook.com customers.

The decision to drop these services from Ourlook.com is the latest in a series of moves that caused widespread outcry amongst Microsoft users. Earlier this year, the company announced that it would stop supporting Windows Server 2003 on July 15, 2015. In April of 2014, Microsoft ended support for all incarnations of Windows XP.

Glass houses

C

reating the next great smartphone is sometimes a fantasy for the big developers. Combining functionality with durability can sometimes prove difficult, but Samsung’s latest offering is close to the borderline of what consumers look for in the ideal mobile device.

After the failure of the Galaxy S5 model, Samsung is attempting a comeback with the new Galaxy S6 and S6 Edge. Expected to replace the S5 as the company’s flagship product, the pair feature an updated design that represents a significant departure from their predecessors.

Rather than having a primarily plastic casing, the Galaxy S6 and S6 Edge are both glass- and metal-based. Although virtually similar at first glance, the two phones do differ slightly. For example, the Edge’s front and rear glass features a more curved design.

“With the all new Galaxy S6 and Galaxy S6 Edge, Samsung is offering what’s next in mobility, along with a new standard to drive the global mobile agenda,” J.K. Shin, CEO and head of IT and

Mobile Communications Division at Samsung Electronics said at the official launch event in Barcelona, Spain.

“By listening to our customers, and learning from both our success and missteps, we continuously push forward new technologies and ideas,” Shin added. “With a reimagined design, robust partner network and novel services, the Samsung Galaxy S6 and Galaxy S6 Edge offer users the ultimate experience in smartphone options.”

Taking a cue from the Galaxy S5, the S6s include a litany of updated features. Both devices are equipped with 16 megapixel cameras with F1.9 lenses and wired charging that is 1.5 times faster than the S5, and wireless charging capabilities. Additionally, the S6s will be the first Samsung devices to be compatible with Samsung Pay, the company’s new mobile payment system.

As more mobile device developers opt to create lightweight devices for better maneuverability, the Galaxy S6 and S6 Edge certainly adhere to that standard. The S6 weighs in at 132g, while the Edge is only six grams heavier.

Available with 32, 64 and 128GB worth of storage space, the Galaxy S6 and S6 Edge are slated for an April 10, 2015 release date.

March/April 2015 IT in Canada Online / 7

TECHNOSPECTIVE TRITON APX 8.0.

By Mark David

DIGITAL COLLABORATION in 140 characters or less

Communication and collaboration are the two Cs of social media platforms. These elements enable users to work together and engage in virtual discussions for work-related or personal purposes.

Bearing this in mind, Twitter has developed new features that will further enhance the capabilities of the microblogging service.

8 / IT in Canada Online March/April 2015

TECHNOSPECTIVE TRITON APX 8.0.

Twitter’s new Group Direct Message and mobile video capture functions allow for direct messages to be shared with multiple users, and videos to be uploaded and edited through Twitter’s mobile applications.

Christopher Doyle, director of media partnerships for Twitter Canada discusses why these new features were introduced, how they will promote collaboration and what the future holds for mobile collaboration and content sharing.

Christopher Doyle, director of media partnerships for Twitter Canada

Q: What led to the development of these new features?

Doyle: At Twitter, we’re always looking for new features and options to add to the platform to support our users. Twitter is a rich and immersive platform and we see people using it for business, for fun, to keep up with their latest sporting events or world news. So we wanted people to be able to communicate and share really engaging content in an even more customizable way.

Q: Why is now the time to integrate

group direct messages and mobile video capture into Twitter?

CD: Twitter allows users to communicate directly with peers, brands and celebrities alike, but we wanted to give users even more options for how and with whom to communicate with on Twitter. Group Direct Messages are another option for communication on the platform.

We also know that video is a really compelling way to tell a story so we wanted to give users the option to seamlessly capture, edit and share videos right from the Twitter app.

The camera was designed to be simple and help users easily capture and share life’s interesting moments as they happen. Viewing and playing videos is just as simple: videos are previewed with a thumbnail and can be played with just one tap.

Q: How will these new features promote

CD: The new mobile video capture feature

CD: The new group Direct Messages really

will help businesses to easily add videos to unfolding conversations and show their own compelling brand content through video.

Video is such a rich way to showcase content and this new feature will allow businesses to increase engagement with existing and new followers through Twitter in real-time.

collaboration amongst peers or co-workers?

allow users to continue a public conversation in a private forum with a smaller group.

This means that peers and co-workers can have a separate dialogue through Twitter in a convenient and easy-to-use way.

For instance, if a user sees a really interesting Tweet or spots a fun trending topic, they can converse about it in real-time through the group Direct Messages. It also fuels collaboration because users can start conversations with any of their followers, even if they don’t follow one another, it’s a great option to bring everyone together in conversation.

Q: How can social media-reliant businesses benefit from these new features?

Q: What does the future hold for social collaboration on social media platforms?

CD: Twitter provides a powerful way for users from around the world to collaborate and share content in real-time. In terms of the future, collaborating on social platforms will not only be the status quo but we will be able to create things online in real-time that we never imagined.

March/April 2015 IT in Canada Online / 9

SECURITY SHELF

By Eric Jacksch

make informed decisions A decades-old problem has come home to roost.

10 / IT in Canada Online March/April 2015

F

or years, concerned parents have used baby monitors to listen to their sleeping infants. Until recently, these devices used simple FM transmitters, making their signals easy to intercept with an off-the-shelf receiver.

In a way, some parents effectively bugged their own home.

Recent news that Samsung Smart TVs provide voice recognition capability by sending captured sounds to a third party for analysis apparently caught some people by surprise. In fairness to Samsung,

they clearly disclosed this in their privacy policy: “If you enable Voice Recognition, you can interact with your Smart TV using your voice. To provide you the Voice Recognition feature, some interactive voice commands may be transmitted (along with information about your device, including device identifiers) to a thirdparty service provider (currently, Nuance Communications, Inc.) that converts your interactive voice commands to text and to the extent necessary to provide the Voice

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TECHNOSPECTIVE SECURITY SHELF

SAMSUNG WILL COLLECT YOUR INTERACTIVE VOICE COMMANDS ONLY WHEN YOU MAKE A SPECIFIC SEARCH REQUEST TO THE SMART TV

BY CLICKING THE ACTIVATION BUTTON EITHER ON THE REMOTE CONTROL OR ON YOUR SCREEN AND SPEAKING INTO THE MICROPHONE ON THE REMOTE CONTROL.

Recognition features to you. In addition, Samsung may collect and your device may capture voice commands and associated texts so that we can provide you with Voice Recognition features and evaluate and improve the features. Samsung will collect your interactive voice commands only when you make a specific search request to the Smart TV by clicking the activation button either on the remote control or on your screen and speaking into the microphone on the remote control.”

So why the furor in February 2015 when, according to archive.org, Samsung had this in their privacy policy for at least eight months? The answer: People don’t read privacy policies.

Consumers must take responsibility for the products that they bring into their homes. If a TV, tablet, phone, or game console feature can be activated by speaking, it obviously must be listening all the time. In Samsung’s case the real objection is that the device sends audio to a third party for recognition instead of doing it locally.

Product manufacturers need to commu12 / IT in Canada Online March/April 2015

nicate more clearly with their customers.

It is obvious from the privacy policy published on their website that Samsung had no intent to deceive. They also likely have good technical reasons for offloading voice recognition to the cloud; TVs lack the processing power required for accurate voice recognition and fine-tuning algorithms in the cloud is much easier than upgrading TV firmware. Other devices, including Apple products, take the same approach.

Yet some customers were surprised and felt that the product was spying on them. And that’s bad for business.

It is tempting to suggest that governments have a role to play in regulating these new technologies. Many classes of products are regulated and government efforts to ensure critical information is provided to the public in a standard format is often successful. For example, “Nutrition Facts” make it easy to compare products and help consumers better understand the food they are eating. But unless governments agree on an international standard, compliance will be unnecessarily complicated and expensive.

As the explosive growth of connected products continues, consumer privacy will be repeatedly thrust to the forefront.

Consumers deserve to know what information their Internet provider, car, fridge, thermostat, phone, and television collect, where it is stored, how it is used, and who has access to it. Manufacturers and service providers who fail to effectively communicate this information do so at their own peril. Bad publicity, class action suits, and prosecution for violating privacy laws are predicable outcomes.

The best approach to addressing consumer security and privacy is to engage an international standards body to create a standard that helps consumers understand what information a product or service collects, and what it does with it. As with food labels, this information should be up front and not hidden in pages of privacy policy or in the fine print. Only then can consumers make informed decisions.

Have a security question that you’d like answered in a future column? Email eric. jacksch@iticonline.ca.

By Mark David

COVER STORY THE POWER OF PREDICTIVE SECURITY

OPEN FOR BUSINESS

The Internet is a place where rules are often construed, and where almost anything goes.

It is a place where people can connect with others, share information and conduct business, among other things. A new ruling from the Federal Communications Commission (FCC) will ensure that the already freeform landscape of the Internet becomes freer.

March/April 2015 IT in Canada Online / 13

COVER STORY THE POWER OF PREDICTIVE SECURITY PEOPLE THAT ARE UNDERSERVED, SUCH AS THOSE IN RURAL AREAS OR THOSE WHO DON’T HAVE GOOD ATTACHMENT POINTS TO THE INTERNET ACTUALLY BENEFIT BECAUSE THE ISPS MUST NOW OFFER THEM AT A REASONABLE PRICE, AND ALSO OFFER THEM BROADBAND. THERE ARE A LOT OF SMALL BUSINESSES AND CONSUMERS IN POORLY-SERVED MARKETS THAT BENEFIT FROM THIS. On February 26, 2015, the FCC announced that they had ruled in favour of net neutrality. The resulting saw the Internet reclassified from an informational to a key telecommunications service, thus giving it Title II, or common carrier status.

The decision has since sparked a large debate amongst experts and Internetreliant companies. Companies like Yahoo!, Google, eBay and Netflix are very much in favour of the new net neutrality rules, as they will no longer need to negotiate with ISPs before launching new products or services. On the other side, opponents of net neutrality include Panasonic, IBM, AT&T and Verizon, who believe that the regulations could have negative repercussions.

Despite its good intentions for businesses and consumers alike, the ruling has left many questions unanswered. To put things in perspective, IT in Canada spoke to Robert Neivert, COO of Internet privacy service provider Private.me about the ramifications of this monumental decision.

Q: What led to the decision passed by the FCC?

Neivert: It all started in 2010, when the FCC tried to pass a regulation on the ISPs, asking them to not be biased in their traffic moderation. What that means is that every website’s traffic would have equal access to bandwidth. Verizon decided that this was inappropriate, and they sued the FCC, saying that they had no right to regulate. They actually won that lawsuit, and that forced the government to say that since Verizon had won, they can’t be regulated.

The backlash was that (the FCC) started (going after) Netflix, asking for payment if Netflix wanted to deliver (their service).

This caused a cascade where a bunch of companies, including Google and Facebook, petitioned the government to extend the FCC’s coverage to cover data traffic.

At that point, they did not propose moving them under Title II because they just wanted to extend the FCC’s regulation.

Robert Neivert, COO of Private.me

When the FCC put this up for comment, they received the single largest amount of comments they had ever received, which actually crashed their website multiple times. They received millions of comments from U.S. citizens saying “We want net neutrality; we want this regulated.”

That actually forced the FCC to do something they did not want to do, which was to move the ISPs under Title II. That was not desirable; people did not want that. But it was the only way they could ensure that they could regulate, and it would not be disputed in court.

What started as a very small regulation change has resulted in a major regulation change due to the lawsuit.

Q: Why has the new net neutrality regulation created such a powerful debate?

RN: I think there are two key elements here. The first one is that on one side of the regulation, you’re basically telling ISPs that they can’t charge for something. They cannot charge bias on traffic, and they are forced to provide services in other areas.

Second, this is a pretty big change, moving back towards the regulation that was removed in the 1980s. That’s what I think the big debate is. Is the government’s role to ensure that? Title II is basically saying no. Data traffic is infrastructure. It’s like the road system. There needs to be equal access for all Americans.

Q: How will businesses and consumers be affected by this decision?

RN: People that are underserved, such as 14 / IT in Canada Online March/April 2015

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COVER STORY

THE POWER OF PREDICTIVE SECURITY

HAVING AN OPEN INTERNET MEANS THAT ANY TECH COMPANY CAN KNOW THAT THAT INFRASTRUCTURE IS IN PLACE AND RELY ON IT FOR THEIR PRODUCTS AND SERVICES.

Lastly, it is expected that the ISPs will take (the report) to court immediately after it gets filed.

Q: What are the benefits of having an open Internet?

RN: Having an open Internet means that any tech company can know that that infrastructure is in place and rely on it for their products and services. It makes it faster and easier for small businesses through these products and services on the Internet because they can always depend on people having access to them, and they themselves don’t have to negotiate to get bandwidth. That makes it easier for businesses to launch.

As an example, let’s assume you own a local hardware store. You can launch a website and you never have to worry that people can’t get to your website. That makes (the situation) a lot easier for you, and it gives you an advantage.

Q: Are there any challenges involved with having an open Internet? those in rural areas or those who don’t have good attachment points to the Internet actually benefit because the ISPs must now offer them at a reasonable price, and also offer them broadband. There are a lot of small businesses and consumers in poorlyserved markets that benefit from this.

That’s the reason why the ruling was passed. Those people could get service, but it would exorbitantly expensive. Those who will directly benefit from this are the people who do not have good connections to the Internet or couldn’t get them before, but were in an area with an ISP. On the other side, companies like Google, Yahoo! and others can now offer services without having to negotiate with an ISP. This makes a world of difference for them. If you think of a company like Netfilx, they do not have to negotiate with ISPs. It’s a (moderate) win for (the big companies), but it’s definitely a win for a lot of smaller start-ups and companies because once they produce a product or service, they do not have to go through that same negotiation process.

16 / IT in Canada Online March/April 2015

Q: Why does this ruling leave many questions unanswered?

RN: The big thing is that the details are not out yet. That is to say they made a general announcement after the vote, which was a 3-2 split, but (the FCC) has yet to release a much larger document with the details, and we’re still waiting for that document to come out. Specifically, (FCC chairman Tom Wheeler) made reference to (several) things he is not going to follow, such as pricing. He said he would not enforce the old pricing (structure).

When Title II was introduced in the 1930s, it included price criteria (for phone service providers). It said that (companies) had to offer things at a certain price point for phone service. (Wheeler) is saying that he will not force ISPs to offer (their services) at a particular price. He wants to remove that clause and modernize Title II. For that reason, because a lot of that (information) has not been released, no one is quite sure how it’s going to be implemented.

RN: There certainly are. Because the ISPs can’t get premium money from the heavy users, there will be a tendency for them to only invest the minimum (amount) necessary. They won’t offer a dramatically improved service.

For example, let’s assume I am an ISP, and I am thinking about streaming Google Fiber. If I can’t get any more money for that, why should I stream it? This puts pressure on ISPs to not grow, except in a competitive environment. And the fact is that they’re not in a competitive environment; most of them are monopolies.

We’re going to see a lot more minimal (investments) that are just enough to get by, but that’s it. They won’t make any radical improvements. This actually slows the ISPs’ growth path because they can’t get premium money. This is why Google Fiber and other companies are trying to introduce competition so that it will move forward because of competitive pressure.

It is my expectation that we won’t see very many speed improvements for a large group of people for quite a bit of time until there is competition.

NETWORK SPOTLIGHT

By Mark David

HOME-GROWN SOLUTIONS

A

small business is like a powerful machine. If all of its parts – employees and management – work together in perfect harmony, productivity is maintained and the work promptly gets done. Although this is the ideal situation, what happens when inclement weather conditions come into play?

The winter season can throw a wrench in the works for SMBs, especially for employees who commute to work. Snowstorms and ice result in dangerous road conditions, often forcing some or all of the staff to work

from home. In the past, working remotely often made communication difficult, but the evolution of mobile technology has allowed SMBs to function remotely without missing a beat.

With this in mind, Sage, a developer of SMB-focused solutions, is helping small businesses to remain productive during periods where the staff is forced to work remotely. Nancy Harris, senior vice president and general manager of Sage North America’s Canadian division, shares some insight about on how going mobile is a help rather

as opposed to a hindrance, and how Sage can help remote workers to stay productive.

Q: Why is it important for SMBs to have

a proper mobile work strategy in place?

Harris: It’s important for SMBs to have this kind of strategy in place simply to address and be able to maintain business continuity and time flow during emergencies or weather impact (situations). Also, (it helps) to ensure that when you would not be able to be connected via a desktop type of enviMarch/April 2015 IT in Canada Online / 17

NETWORK SPOTLIGHT YOU MIGHT HAVE AN ON-PREMISE ACCOUNTING PRODUCT, BUT

BY USING A CLOUD-CONNECTED SERVICE, SUCH AS SAGE MOBILE SALES, YOU CAN BE OUT IN THE FIELD AND CREATE INVOICES AND GET PAID. ALL OF YOUR TRANSACTIONS WILL THEN FLOW BACK INTO THE ON-PREMISE ACCOUNTING PRODUCT.

Nancy Harris, senior vice president and general manager of Sage North America’s Canadian division ronment, you maintain your productivity and keep your business up and running from a virtual standpoint.

Q: Many people believe that working remotely can decrease productivity.

Why is this?

NH: They may believe that working from home can decrease productivity because people could get distracted from their tasks at hand vis-à-vis their priorities at work.

That being said, in today’s day and age, there are many technologies that enable people to be extremely productive when working from home or any location that’s remote from their office. It’s a matter of giving people the right tools and technologies to do their jobs while they are working remotely that can help ensure productivity even when they are not in the office.

Q: What can SMBs do to maintain

collaboration while working remotely?

NH: There are a number of technologies out on the market today that enable people to be highly productive. Those of us who have had to work from a remote location need to collaborate with our colleagues. There are a number of collaboration platforms that include the likes of Skype, GoToMeeting, Google Hangouts where companies and 18 / IT in Canada Online March/April 2015

their colleagues can virtual meetings online via chat and voice (capabilities). People spread out in an abundance of locations can have virtual meetings and share documents and ideas, all connected via cloud technology. This helps you to make great progress on your priorities.

Mobile Sales, you can be out in the field and create invoices and get paid. All of your transactions will then flow back into the onpremise accounting product.

Q: What kinds of solutions does Sage

NH: When you look at the trend of mobile

offer for remote business management?

NH: At Sage, we have a number of pure-play cloud-based products, such as Sage One. If you are responsible for the back office, you can log into Sage One via any Web browser, create invoices and send them to your customers. You can also manage your expenses and keep your books, and all of this can be done via the cloud.

We also have what we call cloud-connected services. You might have an onpremise accounting product, but by using a cloud-connected service, such as Sage

Q: What does the future hold for mobile work strategies?

device adoption, when you include smartphones, they far surpass laptops as hardware today, and it’s growing at an extremely rapid rate. It will be imperative that small businesses be able to arm their workers with the right tools and technology to be productive when they’re remote.

Vendors like Sage and others in the technology field will constantly be innovating, like we’re doing with providing pure-play cloud-based applications and providing ways for workers to be productive with on-premise products while remote or out in the field. It will be imperative that they do so in order to survive and keep up with the trend.

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32 / CRN Canada December 2010

Specifications: Headline: cannot exceed 40 characters Copy: Cannot exceed 150 words. Advertiser are responsible for writing copy, IT in Canada reserves the right to edit copy.

Illustrations: Advertisers must submit high resolution electronic files.

For Advertising Inquiries Contact: Marcello Sukhdeo VP Business Media Strategy 905-727-4091, x224 marcello.sukhdeo@iticonline.ca

CHANNEL CORNER

By Michelle De Hertogh

RE-DEFINING THE CHANNEL:

I

The changing partner landscape

n the first article of this series, we looked at how customers are changing the way they engage with partners. We discussed how customers, who are now better informed and connected through social communities, are demanding custom, end-to-end solutions to support their cloud transformations and big data initiatives.

In the process, they’ve outgrown the point products traditionally sold by VARs. 20 / IT in Canada Online March/April 2015

Gone are the days when VARs simply resold technology to their customers. Or system integrators only sold services with technology companies. Or where outsourcers bought technology directly from technology companies to run systems for their customers.

All partner “types” are being forced to evolve and step outside of their traditional business models, doing things that were

once unthinkable. Systems integrators are reselling technologies while outsourcers are adding new sell “through” and sell “with” business models to their sales strategy.

If a partner company hasn’t at least considered altering its business model at this point, its chances of survival are quickly diminishing. A transition to a hybrid-partner model can take up to 18-months in a market with a six-month sales cycle. Partner companies

  

TECHNOSPECTIVE

Do your sales reps spend more time looking for special pricing approvals than talking to customers?

Is your purchasing team struggling to keep up with requests to validate pricing and discounts?

 Is your sales team aware of all your customers’ upcoming maintenance, support and warranty renewals?

Are your client entitlements lapsing, leaving your customers exposed and your accounts vulnerable to your competitors?

We Can Help                  

March/April 2015 IT in Canada Online / 21 

CHANNEL CORNER

New model, new marketing

must face a hard choice – evolve or die.

Partners evolving to a hybrid model must ask themselves three questions: How do I quickly change my offerings to meet new customer demands? How do I make the change without impacting revenue flow?

How will I support a new business model?

New demands, new portfolio, new business model Some of the pain points that will drive change in a partner model are mixed responses from customers on traditional products: “I like your product, but can you help me run my business in the cloud?”

To compete in the cloud-computing arena, partner companies will have to resell another company’s cloud offering or establish their own. Many VARs are setting up their own clouds by leveraging their expertise in installing, implementing and servicing data centers. However, not so many are adept at selling a cloud solution.

Meanwhile, systems integrators are starting to resell other vendors’ products, which would have been unheard of three years ago.

To provide a complete end-to-end solution 22 / IT in Canada Online March/April 2015

for their customers without giving away products, they’re adding a “sell through” aspect to their process of offering cloud solutions.

Evolve and minimize revenue impact Any partner company that attempts to evolve its business model alone will face an interruption in revenue for up to a year and a half, complicated further by unpredictable levels of margins throughout a diverse range of products and services.

Smaller and more agile companies will make the transition sooner, potentially leveling the playing field with their larger competitors. Larger companies will in turn acquire these firms or merge with larger organizations that offer complimentary services, such as the recent acquisition of the French–owned IT VAR Bull Group by Atos, a software consulting and hosting firm.

Consolidations will likely prove to be a quick path for VARs, systems integrators and outsourcers to leverage their collective strengths and minimize interruptions to revenue.

As partner companies evolve, so must their marketing disciplines. Traditional direct mail, brochures and specialty advertising items no longer match the unique, end-toend solutions that customers want, or the way that customers research solutions for their business challenges.

Today’s IT professionals seek information and share insight through a social community of colleagues and even competitors. Blogs, Twitter chats, articles in trade journals, and webinars provide a dialog that addresses a broader set of needs. As a result, they’re better informed and more engaged. More than 60 per cent of customers are familiar with the technology before contacting a sales rep.

Therefore, it’s important to engage in these conversations over leadership discussions on blogs, Twitter and through the media.

Partners will need to be able to convey their leadership and knowledge over multiple topics, offering advice and insight to help solve the customer’s individual problem.

And everything must be digital, social, and searchable.

Credibility can be achieved through customer success stories, shared over Twitter chat sessions, joint blogs or traditional press releases. It’s best to make these arrangements early in the contract discussions, offering discounts in exchange for joint public relations and marketing activities.

This approach to marketing will also change who engages with the customers.

While sales traditionally takes the lead, armed with marketing materials, marketing will now have to join sales by driving the customer dialog to demonstrate thought leadership and credibility.

Although there is a long journey ahead, successful partner companies will come out of this transition as trusted advisors, opening new doors of opportunity and new sources of revenue beyond their traditional point products.

Michelle De Hertogh is the senior director of Global Alliances and Service Provider Marketing for EMC.

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76%

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50%

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23%

Have personal control or significant influence over budgets greater than $10 Million