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2004-2005 U.S. Small & Medium Business IT Channel Partners Attitudes and IT Sophistication-Based Segmentation

Product Type: Market Research Report
Published by: AMI-Partners, Inc.
Published: June 2005
Product Code: R149-314
Description
Report: U.S. Small & Medium Business IT Channel Partners: Attitudes and IT Sophistication-Based Segmentation
Name of survey: 2004-05 U.S. SMB IT Channel Partners
Country: U.S.
Number of pages: 53

AMI estimates that there are about 44,374 IT channel partners (excluding ISPs) in the U.S. that derive at least 50% of their annual sales revenues from sales to SMBs. Collectively, these IT SMB channel partners had annual revenues of $117 billion last year, making them a very attractive market for IT vendors.

As intermediaries between IT vendors and end-users, SMB channel partners play a crucial role in the highly dynamic IT industry. With different specializations like Value-Added Resellers (VAR), System Integrators (SI) and Network Integrators (NI), Independent Software Vendors (ISV), IT Consultants, Web Solution Providers and Communications Integrators, these channel providers sell a wide range of products and services to IT end-users. In addition, their proximity to, and close interaction with the end-users also provides them an opportunity to participate in, and influence their clients' brand selections. Thus, they are sought not only by IT vendors trying to reach the end-users of their products and services, but also by end-users trying to keep up with the ever changing technologies.

Like the customers they serve, IT SMB channel partners are a diverse group and, in many respects, the channel partners' industry mirrors the adoption profile of its customers. This is reflected in the products and services they offer, specializations they develop, size, location and attitudes toward new technologies, etc., a fact brought into sharp focus in the four segments of the channel partners' industry presented in this report. These four segments have a one-to-one correspondence with the four segments identified in separate reports by AMI for the end-users in the U.S. small business and U.S. medium business markets. By following a constant segmentation structure both for the end-users and the channel partners markets, IT vendors can develop a constant and highly actionable marketing strategy and also implement it with greatest effectiveness.

This report presents an overview of the U.S. IT SMB channel partners market segmentation. These segments, referred to as Tiers, represent a continuum from the technologically most sophisticated to the least sophisticated IT channel partners. Their technological sophistication is defined in terms of both the products and services they currently offer as well as their business attitudes (i.e. attitude toward adoption of new technologies, attitude toward marketing, and attitudes toward partnering with other businesses including IT vendors and other channel partners), which reflects their inclination to maintain their level of sophistication in the future. The Management Summary presents profiles of individual segments followed by detailed cross-segment analysis.
Table of Contents
Management Summary

Overview of U.S. Channel Partners SMB Segmentation

Profiles of U.S. Channel Partners Segments

Tier 1 Channel Partners: Enterprise Adopters

Tier 2 Channel Partners: Value-Priced Service Providers

Tier 3: Mainstream Service Provider

Tier 4: IT Laggards

Statement of Methodology for SMB Channel Partners Study

Overview

The SMB Channel Partners Study: Survey Methodology

Universe, Sample Selection

Data Collection Method

Weighting of Survey Data

Incentives

Survey Instrument

Issues Covered in Channel Partners Survey

Margin for Error

Channel Partners' Background: An Un-Segmented View

AMI-Partners 2004-5 Channel Partners Segmentation

Actionable Four Tier Segmentation Model

U.S. SMB IT Channel Partners Market Segments

Background & Customer Profiles

Current and Planned Product & Services Offerings

Business Models and Attitudes

White Boxes Offered and Sold

Decision Making and Vendor Selection

Average Gross Margins Earned

Use of Internet/Web Site

Vendors Used & Channel Partner's Satisfaction by Segment

Glossary




List of Figures

Figure 1 - Overview of 2004-5 U.S. SMB Channel Partners Segments

Figure 2 - Channel Segmentation: Mapping Partners to SMB Customers

Figure 3 - Summary of 2004-5 U.S. SMB Channel Partners

Figure 4 - Summary of 2004-5 U.S. SMB Channel Partners (Continued)

Figure 5 - Summary Profile of Tier 1

Figure 6 - Summary Profile of Tier 2

Figure 7 - Summary Profile of Tier 3

Figure 8 - Summary Profile of Tier 4

Figure 9 - Methodology

Figure 10 - Methodology (Cont'd.)

Figure 11 - Issues Covered for the 2004-5 U.S. SMB Channel Partners Study

Figure 12 - Margin of Error

Figure 13 - 2004-5 Structure of U.S. Channel Partners Industry

Figure 14 - Summary of Findings

Figure 15 - Primary Activities of Channel Partner

Figure 16 - Geographical Location of Head Office

Figure 17 - Annual Sales Revenues by Primary Business and Customer Size

Figure 18 - Geographical Distribution of Revenues

Figure 19 - % of Revenue Derived from Different Sized Businesses

Figure 20 - Employee Size Distribution

Figure 21 - Number of Employees by Primary Business Activity

Figure 22 - IT Intensity of Different SMB Customers by Employee Size

Figure 23 - Avg. Customer Account Size

Figure 24 - Channel Partners Influence in Customers Brand Selection

Figure 25 - Vendor Communication Strategies

Figure 26 - Internet, IT Security & Services Offerings: Currently Offered & Planned

Figure 27 - Computing, Networking & /software Offerings: Currently Offered & Planned

Figure 28 - Business Attitudes

Figure 29 - Importance of Different Factors in Selecting a Supplier/Vendor

Figure 30 - Importance of Different Factors in Selecting a Supplier/Vendor

Figure 31 - U.S. SMB Channel Partners Segmentation Methodology

Figure 32 - Questions Used for US SMB Channel Partners Segmentation

Figure 33 - Primary Business of Channel Partners By Segment

Figure 34 - Location of US SMB Channel Partners By Segment

Figure 35 - Age of US SMB Channel Partners By Segment

Figure 36 - Annual Sales Revenues By Segment

Figure 37 - Number of Employees by Segment

Figure 38 - Number of Locations by Segment

Figure 39 - Number of Active Customers by Segment

Figure 40 - Annual Revenue Growth Last Year By Segment

Figure 41 - Expected Annual Growth Rate Next Year by Segment

Figure 42 - IT Intensity of SMB Customers by Segment

Figure 43 - Business Attitudes by Segment

Figure 44 - Vertical Markets Served by Segment

Figure 45 - Revenue Mix by Customer Size by Segment

Figure 46 - Avg. Annual Customer Account Size by Segment

Figure 47 - Channel Partners Influence in Customers Brand Selection by Segment

Figure 48 - Number of Products & Services Offered by Segment

Figure 49 - Effectiveness of Vendor Communication Strategies

Figure 50 - Current and Planned Computing Hardware and Software Offerings by Segment

Figure 51 - Current and Planned Networking & Internet Offerings by Segment

Figure 52 - Current and Planned Security and IT Services Offerings by Segment

Figure 53 - Channel Partners That Offer White Box Systems By Segment

Figure 54 - Channel Partners That Build Their Own White Box Systems By Segment

Figure 55 - Revenues Derived from Different Products & Services By Segment

Figure 56 - Revenues Due to Different Sales/Business Development Activities

Figure 57 - Vendor Selection Criteria by Segment

Figure 58 - Vendor Selection Criteria by Segment (continued)

Figure 59 - Vendor Selection Criteria by Segment (continued)

Figure 60 - Gross Margins for Computing & NW HW

Figure 61 - Gross Margins for Internet Services & Telephone By Segment

Figure 62 - Currently Have or Plan to Have a Web Site

Figure 63 - Percent of Revenues from E-selling via the Internet

Figure 64 - Semiconductor & Computing Vendors Used By Segment

Figure 65 - Networking & Storage Vendors Used By Segment

Figure 66 - Software & Security Vendors Used By Segment

Figure 67 - Satisfaction with Semiconductor and Computing Vendors

Figure 68 - Satisfaction with Networking and Storage Vendors

Figure 69 - Satisfaction with Software & Security Vendors

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