This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. © 2012 Gartner, Inc. and/or its affiliates. All rights reserved. Tiffani Bova Gartner VP Research Indirect Channel Programs & Sales Strategies WW Reading the Tea Leaves State of the Market

Channel Trends

Voice of the Customer

IT Spend Still Focused on “Run”

CIO-Identified Top Business PrioritiesRanking of Business Priorities for CIOs AllAPACEMEANA Increasing enterprise growth1111 Attracting and retaining customers2222 Reducing enterprise costs3934 Creating new products and services (innovation)4353 Increasing profitability (margins)5745 Improving efficiency6467 Improving marketing and sales effectiveness7-78 Improve governance, compliance, risk and security8--6 Creating or improving customer channels9-109 Implementing finance and controls10-8- What is Driving Business Leaders?

2012 CIO Regional Strategic Priorities CIO-Identified Top Strategic PrioritiesRanking of Business Priorities for CIOs AllAPACEMEANA Delivering projects and enabling business growth 1121 Reducing the cost of IT 261- Developing/managing a flexible infrastructure 3386 Expanding the use of information and analytics 42-2 Implementing mobility solutions 5--3 Implementing business process improvements Improving the business/IT relationship 7549 Consolidating IT operations and resources 8-3- Improving IT operations 9-97 Implementing e-commerce and channel solutions 1045-

Notes: Asia/Pacific: third = other, seventh = security, ninth = customer sales and service North America: sixth = security Strategic Technologies Ranking of the Technologies That CIOs Selected as One of Their Top Five Priorities in 2012 by Region AllAPACEMEANA Business Intelligence/Analytics1221 Mobility2132 Legacy Modernization3614 Clouds4473 SOA5-4- CRM6865 Virtualization71088 Collaboration8557 BPM9-109 IT Management10-9 Technology Priorities Call for Strengthening the Customer Experience

$100 investment allocation N = IT Priorities - Total Q26. What do you consider your organization/subsidiary/region/country's top three IT project priorities for 2013? Up to three responses allowed Brazil Mexico N = 112

Communication and Collaboration Trends

UC Enables a Stronger Mobility Experience With Handset Replacement Slow, multidecade trend away from wired handsets Emphasis on smartphones and tablets -Investment in iPhones and Androids Enhanced mobile upsell opportunities -Single-number reach, unified messaging, speech to text -Location-based services -Mobile device management * Illustrative of trend, not an actual forecast Mobile substitution happening now

The Pace of UCC Evolution Is Accelerating: Comms and Collab Drives Competitiveness Communicate Productivity Cost avoidance Calendar Audio conferencing Voice/Telephony Discussion forums Video conferencing Network Competitiveness Agility Responsiveness Decentralized decisions Self-organization Trust/social capital Ecosystem engagement Share Effectiveness Process consistency Resource optimization Productivity Business Value Gen 1 Gen 2 Gen Aggregate Tap broader audiences Work with more context Locate experts Facilitate swarming Gen Shared workspaces Web conferencing Instant messaging Presence Documents Reporting Blogs, wikis User-generated content Activity streams Social profiles Microblogging Expertise location Universal dashboard Social analytics Co-editing Location awareness

UCC: Junction of 2+ Markets UCC represents a broad set of functions. Growing, evolving, changing, adapting. Few companies have the same requirements. CommunicateShareNetworkAggregate "UC" Web conferencing Instant messaging Presence Directory Collaboration Team/shared workspaces Wikis, blogs, filtering Social software and analytics Expert location and context-aware applications Collaborative/real-time authoring "UCC" Other collaboration tools Communications Telephony Voice mail Audio conferencing Unified Messaging Videoconferencing Call center

Factors Driving Change and Trends in UCC Consumerization Social Software Cloud Contextual Deployment Multitasking Multimodal New User Comm & Collab Paradigms Mobility

IT related actions over the next 12 months (Midmarket) Multiple responses allowed n= n 720

Channel Eco-System Evolution

The Channel Company Evolution

Key Attributes of Key Business Models – Value Close to Product

Supplier to Trusted Partner

Channel Playing Specific Roles in Cloud Source: Gartner (April 2012) n=313

Product and Services Mix

Partner Services Evolution Consulting Services Professional Services Customer Value Stacks Infrastructure Management Application and IT Management Business Services Supporting Services Service Assets Product Support Services Service Delivery Options Partner Delivered Provider Delivered Resale PartnerMSP Partner Provider Delivered Partner Delivered Services Partner Provider Delivered Partner Delivered Outsourcing Partner Partner Delivered Provider Delivered Plan – Build, Reactive, Proactive, Preemptive, Operate  Provider Does More Partner Does More  Amount of Partner Investment  Technical ServicesManaged Services Advanced Services

Right Skills for Same Type of Business Lack of Skills for Advanced Offerings Source: Gartner (April 2012) n=313

Without Sales Aligned – New Offerings Stall Source: Gartner (April 2012) n=313

Marketing Yourself in Today’s Market

You’re Selling Solutions

Differentiation

Marketing is a Discretionary Expense

Final Thoughts and Recommendations

Distance buyer from technology and marry them to the outcome If you miss a shift you are at risk Prepare your company for success New era of computing New buyers of technology New partner types Always reinvent your business, there is no ‘end game’ Growth requires leadership Create differentiated value Meet market demand Make IT relevant Moving from tactical ‘supplier’ to strategic ‘partner’ doesn’t happen overnight Recommendations

This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. © 2012 Gartner, Inc. and/or its affiliates. All rights reserved. Tiffani Bova Gartner VP Research Indirect Channel Programs & Sales Strategies WW Tiffani_Bova Reading the Tea Leaves State of the Market