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2004-2005 India Small & Medium Business IT Channel Partners: Attitudes and IT Sophistication-Based Segmentation

Product Type: Market Research Report
Published by: Access Markets International Partners
Published: December 2005
Product Code: R149-393
Description
AMI estimates that there are about 5,632 IT channel partners (excluding ISPs) in the India that derive at least 50% of their annual sales revenues from sales to SMBs. Collectively, these IT SMB channel partners had annual revenues of $273.4 thousand 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 India small business and India 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 India 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 India Channel Partners SMB Segmentation



AMI-Partners 2004 Channel Partners Segmentation



Profiles of U.S. Channel Partners Segments



Tier 1 Channel Partners: Enterprise Adopters or Premium Service Providers



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 for India



Channel Partners Covered



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



Study Overview



Background and Customer Profiles



Current and Planned Product and Service Offerings



Business Model and Attitudes



Decision Making and Vendor Rating



Demographics and Background



White Boxes Offered & Built



Sales & Business Techniques Used In India



E-Commerce Use & Revenues



Business Attitudes



Vendor’s



Vendors Represented & Channel Partner’s Satisfaction



India SMB IT Channel Partners Market Segments



Glossary





List of Figures

Figure 1 - Overview of 2004 India SMB Channel Partners Segments



Figure 2 - Channel Segmentation: Mapping Partners to SMB Customers



Figure 3 - Summary of 2004-5 India SMB Channel Partners Segments



Figure 4 - Summary of 2004-5 India SMB Channel Partners Segments (continued)



Figure 5 - Summary Profile of Tier 1: Prime Service Providers



Figure 6 - Summary Profile of Tier 2: Value Priced Service Providers



Figure 7 - Summary Profile of Tier 3: Mainstream Service Providers



Figure 8 - Summary Profile of Tier 4: IT Laggards



Figure 9 - Methodology



Figure 10 - Methodology (Cont’d.)



Figure 11: Issues Covered for the 2004-5 India SMB Channel Partners Study



Figure 12 - Objectives for SMB Channel Partners Segmentation Model for India



Figure 13 - Questions Used for India SMB Channel Partners Segmentation



Figure 14 - Margin of Error



Figure 15 - Summary of Findings for India



Figure 16 - 2004-5 Structure of India Channel Partner Industry



Figure 17 - Primary Business Activities of Channel Partners



Figure 18 - Primary Business of 2004-5 Channel Partners by Segment



Figure 19 - Location of India SMB Channel Partners by Segment



Figure 20 - Age of SMB Channel Partners by Segment for India



Figure 21 - Annual Sales Revenues by Segment



Figure 22 - Number of Employees by Segments in India



Figure 23 - Numbers of Locations by Segment in India



Figure 24 - Numbers of Active Customers by Segment on India



Figure 25 - Annual Revenue Growth Last Year by Segment in India



Figure 26 - Expected Annual Revenue Growth Next Year by Segment



Figure 27- IT Intensity of Customers by Segment



Figure 28 - Vertical Markets Served by Segment



Figure 29 - Average Customer Account Size by Segment



Figure 30 - Revenue Mix Size by Segment



Figure 31- Channel Partners Influence in Customers Brand Selection by Segment



Figure 32 - Effectiveness of Vendor Communication Strategies in India



Figure 33 - Number of Products & Services Offered by Segment



Figure 34 - Current & Planned Computing HW & SW by Segment



Figure 35 - Current & Planned Networking & Internet by Segment



Figure 36 - Current & Planned Security & IT Services by Segment



Figure 37 - Channel Partners Offering White Boxes by Segment



Figure 38 - Percentage that Build White Boxes by Segment in India



Figure 39 - Revenues Derived from Different Product & Services by Segment



Figure 40 - Revenues from Different Product Groups by Segment



Figure 41 - Average Margins for Computing & Networking Hardware by Segment



Figure 42 - Average Margins for Packaged & Custom Software by Segment



Figure 43 - Avg. Margins for Computing, Internet Services & Telephony by Segment in India



Figure 44 - Currently Have or Plan to Have a Web Site by Segment



Figure 45 - % Revenues from E-Selling by Segment for 2004-5 in India



Figure 46 - Business Attitudes by Segment



Figure 47 - Critical Customer Satisfaction by Segment in India



Figure 48 - Critical Customer Satisfaction by Segment in India (Continued)



Figure 49 - Critical Customer Satisfaction by Segment in India (Continued



Figure 50 - Semiconductor & Vendors Represented by Segment



Figure 51 - Networking & Storage Vendors Represented by Segment



Figure 52 - Software/Security Vendors Represented by Segment



Figure 53 - Computing & Semiconductor Providing Vendor Satisfaction by Segment



Figure 54 - Networking & Storage Vendor Providing Satisfaction by Segment



Figure 55 - Security & Software Vendor Providing Satisfaction by Segment
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