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Move to grow Bl in mid-market space.
by MANDA BANDA
Nine months after launching the SAS Reseller programme in the United States (US), SAS Institute is expanding its channel efforts into 13 countries and adding more business-intelligence (Bl) software bundles tailored for small and midsize companies.
"We are under no illusion that success in the mid-market space will come easily for us." - Murray de Villiers, SAS Institute Nathalie Ing and Murray de Villiers, SAS Institute
Nathalie Ing and Murray de Villiers, SAS Institute
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Under SAS Institute's ambitious phase one global strategy, unveiled recently, the SAS Reseller Programme is being expanded to VARs, system integrators, ISVs and solution providers in SA, Canada, the United Kingdom (UK), France, Germany, Switzerland, Sweden, Italy, Russia, Japan, China, Australia and India. The company has enlisted more than a dozen solution providers internationally, including Business Performance Solutions (BPS) and Octoplus in SA, Syncer and Odesys in France, Morse in the UK, Prowerks in Canada, and DiSo in Switzerland.
In SA, the SAS Reseller Programme has not been officially launched but the Bl and analytics vendor is scheduled to unveil the programme to the local channel in September 2007. Ideally, the company is looking at recruiting partners that have some knowledge of Bl, analytics and CRM, although it would like to lure VARs that work with other Bl software vendors, such as Business Objects and Cognos, and platform vendors, like IBM and HP.
The company hopes to boost its reseller register to 160 by the end of this year, with about 100 in the US and 60 split between Europe, the Middle East and Africa, and Asia Pacific.
SAS' goal is to have between 250 and 350 resellers generating 15 per cent of new licence revenue by the end of 2008, and 20 per cent of new licence sales by the close of 2010. The company ultimately expects 50 per cent of its channel sales to come from outside the US.
This is a huge market for SAS and if the vendor plays its cards right, it will have done what its competitors like Cognos and Business Objects have failed to do, and that is to have a concerted mid-market Bl software channel strategy.
In SA, the company is looking at recruiting up to 24 partners that will receive sales and technical training, and be certified Bl SAS channel partners. In addition, the Bl and analytics vendor will give preference to solution provider partners that have an understanding of the local mid-market space.
Murray de Villiers, manager Africa, Middle East regional alliances at SAS Institute, says while the launch of the SAS Reseller Programme presents a challenge for the company worldwide, it is also a global opportunity as this is a market that has not been served through channel partners in the past. "We have worked with a few select partners but only in the enterprise space," he says. "What this initiative aims to achieve is to bring the intelligence to companies operating in the mid-market space so that they too can understand the true value of using intelligence in their businesses."
"We have decided to focus on dealing directly with resellers so that they can choose the type of relationship that best fits their business with us." - Carel Badenhorst, SAS Institute
De Villiers says by engaging channel partners to go after the much sought after small and mid-size business, the company is moving away from the notion of selling Bl and analytics software based on functionality but on value and usage. "We are under no illusion that success in the mid-market space will come easily for us," he says. "That is why we are not going for large numbers in terms of channel partner coverage and reach but rather focusing on quality."
He says it is imperative that the company gets it right because laying a strong foundation for the programme is going to make it simpler to rollout this initiative elsewhere on the continent in countries that have potential for Bl solutions.
De Villiers says it is pleasing to see SA being pitted against countries in more mature IT markets in Europe, Asia/Pacific Nathalie Ing, SAS Institute and North America, as this show of confidence is a sign that the local Bl market is maturing. "Market maturity is probably the biggest challenge we are faced with in SA as we take this programme to partners," he says. "Because Bl software is specialised it requires training people, and it is vital that the partners that sell, implement and support SAS Bl solutions at client level have the proper skills to do so."
Mid-market bundles
Aside from being a certified SAS Bl partner, and the sales and technical training that channel partners stand to gain from the programme, resellers will also benefit from SAS Institute's mid-market product bundles and price discounts of up to 30 per cent, depending on their partner status.
The company has put together nine SME and mid-market-focused bundled applications that include the following: SAS Data Integration for Midsize Business, SAS Enterprise Bl for Midsize Business, SAS Statistical Pro for Midsize Business, SAS Desktop Data Mining for Midsize Business and SAS Forecasting for Midsize Business. Pricing for the bundles start at around US$2 000.
The bundled applications are the biggest attraction for channel partners, says Nathalie Ing, strategic alliance manager at SAS Institute SA. Ing says the packages will offer resellers the opportunity to earn decent margins of up to 50 per cent on typical enterprise-class Bl software for midsize businesses.
The programme and benefits
While the vendor has stated that it will not recruit for the sake of having a channel partner, potential resellers are interested to know what SAS will bring to the channel when it officially unveils this initiative. A good pricing structure, rebates, sales and technical support, partner account management, training and certification, and marketing tools should work to SAS Institute's advantage.
Ing says as a SAS reseller, you'll maintain your customers' trust by offering them leading-edge, market-driven solutions that will help them to reap significant benefits. "Our resellers are an important part of our go-to-market strategy in the mid-market space," she says. "Through a concerted team effort, we'll empower those partners who join us with the resources they need to grow their bottom line and ours, differentiate their business and accelerate profitability."
Ing explains that among the things resellers stand to benefit from with the new programme are:
- Access to SAS' internal and external sales and marketing resources, giving resellers greater market exposure for expanding their business and revenue opportunities.
- Support for reseller sales efforts, with access to specialised training, marketing material, lead generation and, when appropriate, working with SAS' own direct sales team or other partners to help close deals.
- A progressive discount schedule and multiple levels of compensation that offer tremendous earning potential.
- Three levels of partner tiering and participation that includes entry-level Silver, Gold and Platinum.
In addition to these partner benefits, resellers on the programme will also enjoy added benefits from the following additional programme features:
- Multiple levels of compensation.
- The ability to resell renewals
- Rapid-track no-cost training.
- Marketing support.
- Inside sales support.
- Pre-sales technical support.
- Post-sales education and technical support.
SAS Institute's Carel Badenhorst, says the Reseller Programme has been developed with a view of directly engaging with the VAR, system integrator, ISV and solution provider channels and will not have a two-tier distribution channel to market. "We have decided to focus on dealing directly with resellers so that they can choose the type of relationship that best fits their business and ours," says Badenhorst.
Nick Grenfell, MD at BPS, a Johannesburg-based SAS Institute reseller that is already on the programme, is pleased with the way the relationship between SAS and BPS has developed: "We have received excellent support from SAS in SA, from commercial and contractual disciplines through to joint marketing initiatives," he says.
De Villiers adds that it is great to be answering the call of local partners by bringing such a comprehensive reseller programme to the market. "We are encouraged by the fact that we have already recruited BPS and Octoplus to the new programme," he says. Octoplus focuses on the education, insurance and research sectors with special focus on the integration and visualisation of information. Aside from the benefits listed above, SAS is also assembling an on-demand demo centre that channel partners can use to access SAS-hosted applications via the Web to demonstrate them to potential customers.
Badenhorst says resellers on the programme will have a dedicated reseller portal that will allow them to register deals, view their rebates, access vital channel announcements and network with their peers. In addition, they will also have access to a dedicated reseller account manager.
As SAS readies to sell its sophisticated Bl, analytics and information management applications to SME and midsize customers through indirect channels, the privately held company with 2006 sales of US$1.9 billion will have to ensure consistency in its delivery to channel partners locally.
While sales generated through the SAS Reseller Programme remain a tiny piece of that, channel partners and industry watchers say the vendor's strategy is going according to plan. Whether this momentum will translate into even greater success for the vendor only time will tell. For now, the vendor should focus on delivering on its promises to channel partners and success will follow.
"The bundled applications are the biggest attraction for channel partners." - Nathalie Ing, SAS Institute
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