Changing Channels
Channelnomics’ T.C. Doyle on the X-Chasm of Service Transformation

Channelnomics’ T.C. Doyle on the X-Chasm of Service Transformation

July 21, 2022

T.C. Doyle, vice president of strategic content at Channelnomics, joins Changing Channels host Larry Walsh to discuss the challenges all vendors face in transitioning from transactional to recurring revenue models.

Services sold through subscription or recurring contracts are fast becoming the dominant go-to-market model for all vendors. While cloud service providers are built on the recurring-revenue model, even hardware and component vendors are pivoting toward the predictable revenue model.

Recurring revenue is attractive, but it’s not easy to generate when a vendor has a legacy of transactional sales. Recurring revenue is — or should be — a replacement for transactional sales. In theory, transactional revenue should go down while recurring revenue increases, over time creating an “X” pattern on a graph.

The challenge is that many vendors try to maintain, if not grow, their transactional sales while building a book of business on recurring revenue. This creates conflict as partners and customers are caught between making choices that often stymie the transition process. This is what Channelnomics calls the X-Chasm.

Navigating the X-Chasm requires understanding the nature of the revenue transition process and how it influences partners and customers, making choices in channel strategy, and adjusting priorities for internal stakeholders responsible for managing legacy and future business units. In this episode of Changing Channels, industry veteran T.C. Doyle talks about his cover story in the premier issue of Channelnomics Quarterly that details the X-Chasm phenomenon and how channel chiefs can navigate the trap successfully.

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Channelnomics: https://channelnomics.com/ 

LinkedIn: https://bit.ly/2NC6Vli 

Twitter: https://twitter.com/Channelnomics 

Changing Channels Is a Channelnomics Production

Follow @Channelnomics to stay current on the latest #research, #bestpractices, and #resources. At @Channelnomics — the voice of thought leadership — we define #channel trends, chart new #GTM strategies, and #partner with industry leaders to champion #diversity in the channel.  

Episode Resources

Host Larry Walsh: https://bit.ly/3beZfOa

Guest T.C. Doyle: https://www.linkedin.com/in/tcdoyle/

Credits

Production: Changing Channels is produced by Modern Podcasting. For virtual content capture and video-first podcasts, check out http://www.modpodstudio.com.

Host Larry Walsh: https://bit.ly/3beZfOa

Voice-Over: Denise Quan

Netenrich’s Justin Crotty on Leveraging Data in Managed Services

Netenrich’s Justin Crotty on Leveraging Data in Managed Services

June 22, 2022

Justin Crotty, senior vice president of channels at Netenrich, joins Channelnomics Changing Channels host Larry Walsh to discuss how data and device telemetry is transforming managed service delivery and value propositions. 

Managed services in the channel are nothing new. Partners started delivering them more than 20 years ago, augmenting and replacing their legacy break/fix support with remote monitoring and management.  

Increasingly, vendors — particularly legacy hardware and software vendors — are discovering the power and value of service and subscription models. Vendors want the same predictable recurring revenue that partners have generated for years. Wall Street and private equity investors are rewarding vendors that make the transition from transactional sales to service-based subscriptions. 

Services ranging from endpoint management to cloud administration are generating petabytes of data. Through the telemetry of the data broadcasted by devices and applications in the field, vendors and partners have a rich source of analytics to diagnose performance and security issues.  

While managed services have always promised customers quick responses to performance issues and system failures, the reality is that services are reactionary. Something has to happen to trigger an alert so a vendor or partner can take action. That’s changing, though, as data analytics become more available. Vendors are beginning to leverage telemetry to identify issues as early as possible so that they and their partners can take anticipatory action and prevent system failures for end users. 

A vendor on the forefront of this trend is Netenrich, which is offering managed service providers a vendor-neutral capability to tap into the telemetry stream to identify and anticipate customer performance issues before they can cause more serious problems. Justin Crotty, senior vice president of channels at Netenrich, joins Changing Channels to discuss this growing trend of enabling partners to be more proactive.  

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Channelnomics: https://channelnomics.com/  

LinkedIn: https://bit.ly/2NC6Vli  

Twitter: https://twitter.com/Channelnomics  

 

Changing Channels Is a Channelnomics Production 

Follow @Channelnomics to stay current on the latest #research, #bestpractices, and #resources. At @Channelnomics — the voice of thought leadership — we define #channel trends, chart new #GTM strategies, and #partner with industry leaders to champion #diversity in the channel.   

 

Episode Resources 

Host Larry Walsh: https://bit.ly/3beZfOa 

Guest Justin Crotty: https://www.linkedin.com/in/justincrotty/ 

Credits 

Production: Changing Channels is produced by Modern Podcasting. For virtual content capture and video-first podcasts, check out http://www.modpodstudio.com. 

Host Larry Walsh: https://bit.ly/3beZfOa 

Voice-Over: Denise Quan 

What Vendors Don’t Understand About Partners

What Vendors Don’t Understand About Partners

June 7, 2022

Larry Walsh, chief analyst at Channelnomics, discusses the performance challenges that channel chiefs face, explaining that they’re rooted in a fundamental misunderstanding of partner business models and ill-conceived presumptions about partner capabilities.

Being a channel chief isn’t easy. Channel leaders face numerous challenges, including getting partners to perform in a way that contributes to company goals and revenue-generation expectations. This underlying challenge is amplified by the struggles that come from transitioning channels to new service and subscription models.

In the 2022 Channel Chief Outlook report, Channelnomics reveals that 85% of channel chiefs say they’re challenged in getting partners to adopt new products, technologies, and services, while 83% say they’re grappling with getting partners to meet or exceed their sales goals. And 71% struggle to get partners to adopt new go-to-market models — mostly based on services and subscriptions.

What’s the source of these challenges? Walsh posits two possible answers: myopic thinking and a fundamental misunderstanding of partner business models.

Over the past two decades, resellers and integrators evolved their business models beyond transactional product sales and break/fix services. Partners make most of their money on managed and professional services. But vendors continue to think that they have to lead partners into the future of services and that partners are behind in their service capabilities.

In this episode of Changing Channels, Larry Walsh, chief analyst at Channelnomics and host of the podcast, details what vendors get wrong about their partners’ business models and capabilities and what they need to do to overcome the challenge of generating superior channel performance that contributes to their corporate goals.

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Channelnomics: https://channelnomics.com/ 

LinkedIn: https://bit.ly/2NC6Vli 

Twitter: https://twitter.com/Channelnomics

Changing Channels Is a Channelnomics Production

Follow @Channelnomics to stay current on the latest #research, #bestpractices, and #resources. At @Channelnomics — the voice of thought leadership — we define #channel trends, chart new #GTM strategies, and #partner with industry leaders to champion #diversity in the channel.

Episode Resources

Host Larry Walsh: https://bit.ly/3beZfOa

2022 Channel Chief Outlook report: https://channelnomics.com/product/channel-chief-outlook-the-2022-report/

Channelnomics Quarterly: https://channelnomics.com/cq/

Ingram Micro Cloud’s John Dusett on Cloud Customer Experience

Ingram Micro Cloud’s John Dusett on Cloud Customer Experience

May 3, 2022

Ingram Micro Cloud’s John Dusett joins Changing Channels host Larry Walsh to discuss new cloud research — conducted by Channelnomics and supported by Ingram Micro Cloud, Microsoft, and Google Workspace — and how the customer experience is crucial when it comes to service renewals and expansions.

The cloud computing market continues to grow at double-digit rates. Over the next decade, businesses will continue to migrate systems and mission-critical workloads into cloud environments. They’ll adopt cloud-based applications to replace legacy client-side licenses, and they’ll subscribe to managed services to support their cloud resources.

To say that it’s a good time for reselling and supporting cloud computing services is an understatement. According to our recent report — “Buying the Cloud: The As-a-Service Experience From the Customer Perspective” — 47% of SMB IT buyers, the prime target for the channel, plan to buy more cloud computing products in the next 12 to 18 months. End users are adopting infrastructure services, productivity software, business applications, and backup services. Moreover, they’re expanding their cloud utilization to include customer support applications and Internet of Things infrastructure.

Cloud computing provides solution providers with recurring revenue. Customers pay for services on monthly or annual schedules, providing resellers with predictable income. The recurring-revenue model works well as long as the customer keeps paying, renewing contracts, and expanding service utilization. As solution providers have learned through managed services, customers are more apt to expand their cloud capacity when they have positive experiences and recognize the value of their spending.

Customer experience is becoming a significant factor in solution providers’ cloud value proposition. While vendors are the source of cloud services, solution providers are the managers of cloud resources and customer experiences. If solution providers can facilitate a positive, seamless experience, customers are more apt to renew and expand their cloud contracts. According to the research conducted by Channelnomics and Ingram Micro Cloud, 38% of cloud buyers base their decision to renew contracts on their experience with a solution provider.

In this episode of Changing Channels, John Dusett, Ingram Micro Cloud’s executive director of cloud services for the United States, joins us to discuss the increasing importance of customer experience in cloud computing engagements and what solution providers need to do to impress and satisfy their clients.

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Channelnomics: https://channelnomics.com

LinkedIn: https://bit.ly/2NC6Vli

Twitter: https://twitter.com/Channelnomics


Changing Channels Is a Channelnomics Production

Follow @Channelnomics to stay current on the latest #research, #bestpractices, and #resources. At @Channelnomics — the voice of thought leadership — we define #channel trends, chart new #GTM strategies, and #partner with industry leaders to champion #diversity in the channel.  

Episode Resources

Host Larry Walsh: https://bit.ly/3beZfOa

Guest John Dusett: https://www.linkedin.com/in/johndusett/

TeamViewer’s Patty Nagle and Rob Thiele on Evolving Channel Strategies

TeamViewer’s Patty Nagle and Rob Thiele on Evolving Channel Strategies

April 27, 2022

TeamViewer’s Patty Nagle and Rob Thiele join Changing Channel’s Larry Walsh to discuss how they’re revamping their channel program to accelerate the company’s evolution into more use cases and market opportunities beyond their remote-access foundation.

Many products start out as free, consumer-oriented offerings to capture market share for what’s often a singular purpose or value proposition. Over time, they evolve into more business-ready, enterprise-centric solutions. The trick is building the sales capacity and coverage to make the leap from legacy to future. The channel is often that evolutionary catalyst.

One company that’s using the channel to make this leap forward is TeamViewer. Best known for products that enable remote access and control for endpoints, TeamViewer is expanding beyond its core into collaboration, workflow management, and augmented reality. While it maintains the freemium offerings that got it started, TeamViewer is increasingly looking to channel partners as a means of identifying new opportunities and servicing an expanding total addressable market.

In this episode of Changing Channels, Patty Nagle, TeamViewer’s North America president, and Robert Thiele, vice president of strategic alliances and partners for the Americas, join host Larry Walsh to discuss how they’ve reshaped their channel program to account for different types of partners, customers, and use cases to facilitate growth beyond the traditional core.

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Channelnomics: https://channelnomics.com/ 

LinkedIn: https://bit.ly/2NC6Vli 

Twitter: https://twitter.com/Channelnomics

Changing Channels Is a Channelnomics Production

Follow @Channelnomics to stay current on the latest #research, #bestpractices, and #resources. At @Channelnomics — the voice of thought leadership — we define #channel trends, chart new #GTM strategies, and #partner with industry leaders to champion #diversity in the channel.  

Episode Resources

Host Larry Walsh: https://bit.ly/3beZfOa

Guest Patty Nagle: https://www.linkedin.com/in/pattynagle/

Guest Robert Thiele: https://www.linkedin.com/in/robthiele/

How the War in Ukraine Is Reshaping Everything

How the War in Ukraine Is Reshaping Everything

April 12, 2022

Larry Walsh, chief analyst at Channelnomics, provides an overview of how the Russian war on Ukraine is affecting global and regional economies, and how the conflict will impact the technology industry and channels.

The Russian war on Ukraine isn’t a regional conflict. While the fighting is happening across the plains and marshlands of the Ukrainian heartland, the war is having a cascading effect of human and economic disruption around the world.

As Walsh explains, the war will cause significant disruptions in energy, food, and raw-material supplies. Western resolve to oppose the war through sanctions comes at a cost; experts say the economic penalties against Russia will reduce global economic growth by 1% to 2%. Ultimately, the consequences of the conflict and the Western response will likely push many countries into recession and instability.

The Western world was in a fog of disbelief, thinking that such a large conflict was beyond the realm of possibility in the post-Cold War era. In our guidance, Channelnomics is preparing for the unthinkable, even if implausible. Technology companies need to develop contingency plans for potential disruptions still to come.

In this special edition of Changing Channels, Channelnomics provides an overview of the war in Ukraine from the unique perspective of how it could continue to impact the technology industry and channel. Chief analyst and Changing Channels host Larry Walsh provides insights on the current extent of the conflict, how it’s disrupting different industries, and how those disruptions will ripple through the general economy.

For a promo code granting free access to one of our latest analyst notes, “Getting Comfortable Asking Uncomfortable Questions Regarding War,” be sure to listen to the entire podcast.

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Channelnomics: https://channelnomics.com/ 

LinkedIn: https://bit.ly/2NC6Vli 

Twitter: https://twitter.com/Channelnomics 

Changing Channels Is a Channelnomics Production

Follow @Channelnomics to stay current on the latest #research, #bestpractices, and #resources. At @Channelnomics – the voice of thought leadership – we define #channel trends, chart new #GTM strategies, and #partner with industry leaders to champion #diversity in the channel.  

Episode Resources

Host Larry Walsh: https://bit.ly/3beZfOa

Hitachi Vantara’s Kim King on Automated Partner Quoting

Hitachi Vantara’s Kim King on Automated Partner Quoting

April 5, 2022

Larry Walsh talks to Hitachi Vantara Senior Vice President of Strategic Partners and Alliances Kim King on automating quoting for partners to ensure fast, easy access to accurate pricing with minimal human interaction.

Buyer expectations have evolved. No longer are companies willing to wait for weeks for quotes on their IT projects. They want the same “Amazon Experience” in their business purchasing that they get in their consumer lives. In other words, they want quotes in days, if not hours.

Quoting has been a longtime challenge for both vendors and distributors. Partners receive different discounts and incentives based on their status, sales performance and history, and competencies. Adding to the complexity is the impact of regional pricing differences, the varying needs of customers for different types of products, and the cost of distribution and fulfillment.

Configure, price, and quote (CPQ) solutions go a long way toward automating many steps in the process. Through such systems, partners (in theory) gain access to product pricing and quoting based on customer specifications and fulfillment needs. CPQ works well, but to a point. These systems often lack the ability to take into account the nuances of incentives and other financial measures that influence partner buying. As a result, gaps remain that keep the quoting process running long.

Storage vendor Hitachi Vantara decided to tackle this problem directly. Rather than adopting a CPQ system, the company formed a “tiger team” to develop a homegrown system based on Salesforce’s CRM. The team set out with the goal of creating a platform capable of processing partner quote requests within hours – even for large enterprise deals. Moreover, the system would include all partner incentives, including deal registration and promotional discounts, in the quotes.

The development took two years of work that included platform customization and the collection of volumes of pricing, discounting, promotional, and partner data. The effort, thus far, is paying off. The Hitachi Vantara partner quoting system is delivering enterprise-level quotes to partners, often in just hours. The tool, which gives partners a competitive advantage by turning around accurate prices with blazing speed, also gives partners more control over pricing, as they’re able to add their own markups with greater ease and consistency.

The Hitachi Vantara quoting system isn’t perfect and remains a work in progress, but the company is demonstrating how vendors can create better quoting systems that improve partner experience and performance. In this edition of Channelnomics’ Changing Channels, Kim King, senior vice president of strategic partners and alliances at Hitachi Vantara, joins host Larry Walsh to discuss how the company developed such a complex quoting system and extracted the benefits they sought.

 

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Channelnomics: https://channelnomics.com/ 

LinkedIn: https://bit.ly/2NC6Vli 

Twitter: https://twitter.com/Channelnomics 

Changing Channels Is a  Channelnomics Production

Follow @Channelnomics to stay current on the latest #research, #bestpractices, and #resources. At @Channelnomics – the voice of thought leadership – we define #channel trends, chart new #GTM strategies, and #partner with industry leaders to champion #diversity in the channel.  

Episode Resources

Host Larry Walsh: https://bit.ly/3beZfOa

Guest Kim King: https://www.linkedin.com/in/kimberly-king-746463/

 

Acronis CEO Patrick Pulvermueller on the Impact of the Ukraine War

Acronis CEO Patrick Pulvermueller on the Impact of the Ukraine War

March 29, 2022

Larry Walsh talks with Acronis CEO Patrick Pulvermueller about the impact the war in Ukraine is having on the technology market and channel, efforts made to help refugees, and how the Russian invasion is changing strategic and contingency planning.

The war in Ukraine, now raging for more than a month, woke governments and companies around the world out of their complacency. The dystopian-like order of the Cold War returned with a vengeance, causing many technology industry leaders to rethink their operations and outlook in ways they couldn’t conceive just weeks ago.

To date, thousands of lives have been lost. Entire cities have been leveled. More than 3.7 million Ukrainians are refugees in other European countries. And as much as 15% of the population has been displaced by the fighting and destruction.

The Western response has been multifaceted. Beyond the financial and military aid flowing into Ukraine, NATO and other Western countries have imposed sanctions on Russia that aim to cripple its economy. Many Western companies – most notably, technology companies – have suspended operations in Russia and taken active roles in aiding the Ukrainian resistance.

One of these companies is Acronis, a cybersecurity and backup specialist based in Switzerland and Singapore, with substantial connections to Russia and Ukraine through its diverse globalized staff. Acronis stopped doing business in Russia in 2017, and the company severed any remaining ties immediately following the invasion in solidarity with Western sanctions and in support of Ukraine’s resistance.

Acronis has taken additional steps as well. The company is actively working to provide displaced Ukrainians with employment; has pledged €500,000 through its charitable arm, Acronis Cyber Foundation; and is helping its employees in Eastern European countries that are providing aid and support to Ukrainian refugees. Acronis, like many of its peers, is dealing with issues that were unthinkable just a month ago.

Beyond the humanitarian efforts, Acronis and companies like it are shifting their strategic thinking. They’re not only thinking about their usual annual operating plans; they’re also considering the short- and long-term ramifications of a sustained war in Ukraine and the widening of the conflict to more countries. They’re coping with the continuing inflation and inventory issues, while adding sanctions and supply-chain disruptions to the list. They’re rethinking everything.

In this Channelnomics Changing Channels episode, Acronis CEO Patrick Pulvermueller joins host Larry Walsh to discuss the far-reaching repercussions of the Russian invasion of Ukraine and how it will impact technology companies around the world.

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Channelnomics: https://channelnomics.com 

LinkedIn: https://bit.ly/2NC6Vli

Twitter: https://twitter.com/Channelnomics

Changing Channels Is a Channelnomics Production

Follow @Channelnomics to stay current on the latest #research, #bestpractices, and #resources. At @Channelnomics – the voice of thought leadership – we define #channel trends, chart new #GTM strategies, and #partner with industry leaders to champion #diversity in the channel.  

Episode Resources

Host Larry Walsh: https://bit.ly/3beZfOa

Guest Patrick Pulvermueller: https://www.linkedin.com/in/patrickpulvermueller

 

Sarit Chalamish of monday.com on Flipping the Script on Partner Enablement

Sarit Chalamish of monday.com on Flipping the Script on Partner Enablement

March 16, 2022

Larry Walsh talks to monday.com Senior Channel Partner Manager Sarit Chalamish about how vendors can step outside of their comfort zone and embrace creative business solutions to pave the way for unparalleled opportunities for growth and success across all levels of an organization.  

As any channel professional knows, building a successful partner program is no simple task. Starting from scratch and finding the right partners to connect with takes a tremendous amount of concentrated relationship-building, typically accomplished through face-to-face meetings and the moments in between wining and dining. Especially for the leaders assigned to getting a new partner program off the ground, securing those first partners is a crucial step, as those early partners can be critical in determining the long-term success of the program.  

Combine the inherent nature of developing a new partner program with the unprecedented circumstances brought on by the pandemic and the challenge seems not only difficult but downright impossible. Of course, collaboration, flexibility, and relationship-building took on new meaning with the onset of COVID-19. A firm handshake was replaced with a link to a virtual meeting as the world was forced into a dependency on computer and phone screens. 

For those starting something fresh in the midst of the pandemic – whether a new job, a new kind of program, or even the general adjustment to remote work – the question was clear: Could virtual resources be enough to meet the demands of pre-pandemic life? 

A channel leader who was quickly forced to answer this question is Sarit Chalamish, senior channel partner manager at monday.com. When she joined the company last spring, she faced a seemingly insurmountable task: to develop the organization’s North America channel program as a new member of the monday.com team and amid the onset of a global pandemic. Quick and creative thinking quickly became the foundation for accomplishing this feat as Chalamish navigated unchartered territory.  

Chalamish, like other channel leaders, knows the right partners can make or break the launch of a partner program. To ensure the success of monday.com’s burgeoning partner program, Chalamish and her team embraced their creative sides, exploring more “out of the box” partner relationships like vertical partners or turning inward and leveraging their own networks. The process was difficult, but the goal was simple: to find partners with the same level of professionalism as monday.com – sharing that same culture of adaptability and creativity – so that clients can enjoy a seamless experience.  

In this edition of Channelnomics’ Changing Channels, Chalamish joins host Larry Walsh to discuss how adopting a mindset of “thinking outside the box” allowed monday.com to develop a partner program entirely through virtual resources. By embracing this same sense of creativity and flexibility, executives can open the door for exciting new projects and relationships across all levels of the channel. 

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Channelnomics: https://channelnomics.com/  

LinkedIn: https://bit.ly/2NC6Vli  

Twitter: https://twitter.com/Channelnomics  

 

Changing Channels Is a Channelnomics Production 

Follow @Channelnomics to stay current on the latest #research, #bestpractices, and #resources. At @Channelnomics – the voice of thought leadership – we define #channel trends, chart new #GTM strategies, and #partner with industry leaders to champion #diversity in the channel.   

 

Episode Resources 

Host Larry Walsh: https://bit.ly/3beZfOa 

Guest: Sarit Chalamish: https://www.linkedin.com/in/sarit-chalamish-28177/ 

GitLab’s Michelle Hodges on Spotlighting the Value of the Channel

GitLab’s Michelle Hodges on Spotlighting the Value of the Channel

March 8, 2022

Michelle Hodges, vice president of worldwide channels at GitLab, joins host Larry Walsh to discuss how channel executives can develop better relationships with board members while showcasing the benefits of the channel.

Channel chiefs are often challenged in explaining and demonstrating the value of partner programs and relationships to decision-makers in their organizations. Having a seat at the management table means having a voice in strategy and decision-making. In business, there’s no bigger table than the board of directors.

Gaining the attention of the board in supporting the channel is becoming increasingly important to channel chiefs. Helping boards understand the value and importance of channel programs and partners can make all the difference when it comes to strategic priorities and funding for indirect routes to market.  

The challenge is bridging the “language divide.” Channel executives and board members often fail to use the same lingo, rely on the same metrics, or even identify the same priorities. To help board members – extensions of the investors behind companies – better understand the value of the channel and what it brings to the table, channel and business managers need to make more of an effort to cultivate a relationship between themselves and the board. In that relationship, channel leaders should focus on using the same metrics, showing demonstrable results, and making it clear that their aim isn’t to sell a product but to explain the channel’s impact on a company’s business.

A channel leader at the forefront of cultivating these types of relationships is GitLab Vice President of Worldwide Channels Michelle Hodges. She’s long been a fierce advocate of working closely with boards and encouraging others to do the same.

Hodges, like other channel leaders, knows it can be difficult to make a material difference in the eyes of the board. That’s why her game plan involves asking lots of questions and catering to the board’s goals. She starts by asking her leadership team about the pressure they’re under by the board and familiarizing herself with management-level metrics. Then she approaches the board, making sure to use the right language to ask about their objectives and explain how their goals align with the value of the channel – and how the channel can produce critical results in serving the business.

In this edition of Channelnomics’ Changing Channels, Hodges joins host Larry Walsh to discuss how cultivating a relationship with board members while zeroing in on the power of the channel can lead to unparalleled opportunities for growth and a more unified value set across an organization.

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Channelnomics: https://channelnomics.com/

LinkedIn: https://bit.ly/2NC6Vli 

Twitter: https://twitter.com/Channelnomics 

Changing Channels Is a Channelnomics Production

Follow @Channelnomics to stay current on the latest #research, #bestpractices, and #resources. At @Channelnomics – the voice of thought leadership – we define #channel trends, chart new #GTM strategies, and #partner with industry leaders to champion #diversity in the channel.  

Episode Resources

Host Larry Walsh: https://bit.ly/3beZfOa

Guest Michelle Hodges: https://www.linkedin.com/in/michellewhodges/

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