Channel Management Programs in Asia/Pacific: A Look at Major Enterprise Applications Players

SUMMARY

This IDC Study has compiled the channel management structure that majorenterprise application vendors deploy for the Asia/Pacific market, andrecommended some key ingredients of a successful approach in building soundchannel model. Over the last few years, software vendors have recognized a vitalcord in their go-to-market strategies, which is indirect channel partnership.

"The change in economic conditions, the emergence of some key markets,and the diversification into new markets call for a greater need for detailedplanning and program development schedules in relation to channelprograms," says Wilvin Chee, Associate Director, Asia/Pacific SoftwareOverview, IDC Asia/Pacific. "Vendors that manage to respond effectively inchannel dynamics within the shortest amount of time will reap valuablecompetitive advantage," he further adds.

TABLE OF CONTENTS

IDC Opinion

In This Study

Introduction

Methodology

Executive Summary

Situation Overview

Introduction

Current Industry Dynamics

Downturn in Demand from the Enterprise Sector

Indirect Sales Driven by Lack of Geographical Coverage

The Demand for End-to-End Integrated Solutions

Targeting Small and Medium-Sized Businesses

The Chinese Market is Central to Regional Growth

Direct Client Contact Important for Larger Customers

Use of Online Portals Key to Channel Program Strategies

Implementation Complexity Continues

Market Consolidation

Concentration on SI and Consultant Channels

Each Channel Strategy is Unique

Vendor Discussion

• Oracle
• Overview
• Global Alliances
• Partner Programs
• Regional Partnerships
• Channel Segmentation
  • Table: Asia/Pacific (Excluding Japan) Oracle Software Revenue Segmented byChannel Type, 2002 and 1H03

Systems Union

• Overview
• Partner Programs
• Regional Partnerships
• Channel Segmentation
  • Table: Asia/Pacific (Excluding Japan) Systems Union Software Revenue Segmentedby Channel Type, 2002 and 1H03

SSA Global Technologies

• Overview
• Partner Programs
• Regional Partnerships
• Channel Segmentation
  • Table: Asia/Pacific (Excluding Japan) SSA Global Technologies Software RevenueSegmented by Channel Type, 2002 and 1H03

Siebel

• Overview
• Global Alliances
• Partner Ecosystem
• Channel Segmentation
  • Table: Asia/Pacific (Excluding Japan) Siebel Software Revenue Segmented byChannel Type, 2002 and 1H03

SAP AG

• Overview
• Global Alliances
• Regional Partnerships
• Partner Programs
• Channel Segmentation
  • Table: Asia/Pacific (Excluding Japan) SAP AG Software Revenue Segmented byChannel Type, 2002 and 1H03

QAD

• Overview
• Global Alliances
• Partner Programs
• Regional Partnerships
• Channel Segmentation
  • Table: Asia/Pacific (Excluding Japan) QAD Software Revenue Segmented by ChannelType, 2002 and 1H03

PeopleSoft

• Overview
• Partner Ecosystem
• Channel Segmentation
  • Table: Asia/Pacific (Excluding Japan) PeopleSoft Software Revenue Segmented byChannel Type, 2002 and 1H03

Manugistics

• Overview
• Global Alliances
• Partner Ecosystem
• Channel Segmentation
  • Table: Asia/Pacific (Excluding Japan) Manugistics Software Revenue Segmented byChannel Type, 2002 and 1H03

i2 Technologies

• Overview
• Global and Regional Partnerships
• Partner Ecosystem
• Channel Segmentation
  • Table: Asia/Pacific (Excluding Japan) i2 Technologies Software Revenue Segmentedby Channel Type, 2002 and 1H03

Future Outlook

Forecast and Assumptions

Increasing Expansion of Partner Programs to Serve the SMB Segment of the Marketwithin the Region

Emerging Markets Will Continue to be Dominated by Channel Partners

Other Individual Country Market Characteristics

End-To-End Solution Based Demands of Clients Will Increase Importance of SystemIntegrator and Consulting Partners to Overall Sales Strategy

Market Consolidation May Prompt More Reliance on Sales Partner Channels

Verticalization of Offerings

Increasing Conflict between Direct and Indirect Channels

Hosted Solutions Grow

Rebalancing of Channels

Essential Guidance

IDC Analysis

Local Partners Key to Business Success within the Region

Training and Education of Partners are Important

Use of Online Portals Key to Channel Program Strategies

Consider New Ways to Serve Clients as Alternatives to Indirect Sales Channels

Increase Industry Expertise within Indirect Channels

Management of SI Partners

Manage the Conflict Between Indirect and Direct Sales Channels

Develop a Coherent Channel Strategy to Target Smaller Customers Within theRegion

Build an Individual Channel Partner Strateg\y Approach for Each Country Market

Build Suitable Partner Strategies for Chinese Market

Manage the Time Lag Between Launch of New Products and Resultant PartnerTraining

Build Trusting Relationships with Key Partners to Promote Good Business

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Related Research

Synopsis