Page 17 - PowerPoint Presentation

Solution Providers Transformation

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 provide rs 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 continued decrease in the Vintage model.

2014

Vintage Progressive Transformative

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

extensions 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?