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Solution Providers have been in a state of transition for the past several years and many have transitioned at least a potion of their
business to include some form of recurring revenue model. The percentages below represent the percentage of solution providers that
have characterized their business culture according to either a Vintage, Progressive or Transformative business model. Based on the
research trends, IPED expects increases in the Progressive and Transformative model with a continue decrease in the Vintage m odel.

2014 Progressive Transformativ

Vintage  relationships with both LOB and IT  relationships with LOB and IT
 actively expanding # of end-users  specialize in key vertical markets
 relationship with IT contacts  some recurring revenues  significant % of overall revenues
 resale of on-premise  adopted cloud services/MSP practice
 very limited recurring revenue  pre-packaged services come from recurring revenue
 project based  relationships with service providers  offers a variety of cloud services
 mostly SMB end-users  sell or develop applications or
 high volume, lower prices or applications
 “lifestyle” business extensions  understand and addresses

business process
 active in P2P collaboration

Source: The Channel Company/ IPED 2014 SP Census. Q. How would you characterize your company's business culture today?

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