Mobility, Motorola and the Changing Channel By Lisa Terry, Contributing Editor, VSR
Imagine this scenario 15, or even 5, years ago: A group of unified communications executives looks to start a new mobility-focused solution provider business; they have voice and communications expertise, but need technical and marketing skill sets for the mobility market. So they turn to Motorola, which provides the needed training, test and demo equipment, access to seasoned sales staff and expert industry consultants to help get them off the ground, and advises them that, contrary to their business plan, they should add software to their offerings. As the new solution provider grows, the two companies communicate through periodic face-to-face meetings and conference calls to collaborate on new solutions and market opportunities.
That level of vendor investment and nurturing in a channel partner would have been unheard of in the days when channel programs were formed mostly around hardware and MDF programs. But it's the real-life experience of Broad Reach Mobility, a San Diego-based mobility solution provider formed in April 2008. Unlike the principles' past VAR-vendor relationships, Motorola "has taken a hands-on approach to cultivate us," says president Jeffrey Fildey. "This is a more collaborative way to build a business and determine what markets to go after. They've (Motorola) helped us grow to be the company we are."
Fostering a channel that best fits market conditions has long been the mission at Motorola--even when it was known as Symbol Technologies--acquired by Motorola in 2007. Now, Motorola is evangelizing a new message: Today's mobile solutions are multi-faceted and far more complex, but must appear seamless and simple to the end user. Partners must rely on each other to share in the innovation and the delivery mechanisms. This takes new thinking and new business models.
"It's become very clear to Motorola that the most important thing in the channel is trust," says Janet Schijns, a channel expert who joined Motorola in September 2008; she currently serves as the vice president of global channels for the Enterprise Mobility Solutions group. "The channel has become more complex and needs a trust network to be innovative."
According to new research on enterprise mobility vendor partner programs by Venture Development, "the most successful organizations are working more collaboratively with their channel partners and are offering a broader range of value-added services."
A Tradition of Leadership
Of course, change is nothing new for the channel. Players in the indirect route to market have cycled through much iteration. Vendor channel programs have evolved as well, all driven by changing customer needs.
In earlier years, a customer needed, say, batch terminals for field service workers. Those needs could often be satisfied by a single solution provider in concert with a hardware vendor and software developer.
Fast-forward to a typical project today: A transportation company needs to equip 150 drivers with a rugged mobile solution that can seek the most efficient routes, account for tolls and fuel prices, track inventory, process transactions and maintain communications with a central dispatcher. A complete solution means: mobile computer, mobile printer, wide-area (and perhaps local-area) wireless LAN connectivity, a range of software capabilities, security, a payment gateway and software, GPS services, and someone to manage configuration, implementation, rollout and ongoing support.
Delivering that takes multiple components and diverse expertise, beyond the scope of any one solution provider. They need to transition to new ways of working and new ways of generating revenue.
"It's the end of the world as we know it, and the beginning of a new universe," says Schijns. There is no longer any time left to work harder; solution providers must work smarter."
Listen and Learn
"What's good for the channel is good for Motorola," says Schijns. While it was always channel-friendly, Symbol determined five years ago that it needed to move more of its business through the channel; Motorola picked up the mantle, and ran with it, bringing with it the resources of a much larger company.
They started by listening--to solution providers, customers, ISVs and vendors. "Motorola is listening as they never did before and taking action," says Brian Marcel, chairman and founder of IBCS Group, an application solution integrator (ASI) serving Middle Europe. "You don't mind coming up with solutions, because you know they will be considered."
One finding was that it was no longer appropriate to place its partners into broad categories with identical benefits. Solution providers determine the relationship with Motorola--and value they derive. "The best thing we can do is not force our model on anyone, but rather take their lead and give them the opportunity to lead or follow," says Kathy Damiani, senior director of channel programs, Motorola Enterprise Mobility Solutions.
The Eco-System
Motorola's new approach views the channel as an eco-system, and has formalized programs to relate to each type of player, as outlined below:
ISVs: In Motorola's more formalized ISV program, mobility ISVs gain access to Motorola programs based on their level of commitment. Benefits may include access to the Industry Solutions Group, a vertical market team led by Mark Self, who studies vertical markets through macro-level research, market barometers and end user and partner focus groups, and offers consultations on business model and skills, strategy and direction, market opportunities and channel relationships.
"We're re-investing in relationships with ISVs," says Self. "We used to think about ISVs as a bucket of partners with important stuff relative to applications. Now we think about how they add value to the eco-system, bring about deals, and look at them strategically from a vertical standpoint and how we may be of help to them in entering new verticals."
Sologlobe, a Montreal, Canada-based warehouse management system ISV and reseller, is experiencing that first-hand. "We're not a huge company in terms of revenue for Motorola, but they have a way of looking at things, that if they think you have potential, the right product for the market, the right go-to-market strategy, they will invest in you," says Emmanuel Langois, executive vice president of Sologlobe.
Alliances: Motorola maintains two types of alliance relationships: with global solution providers such as CSC and Accenture, and with large tech companies including Microsoft, Oracle and SAP.
A solution provider may turn to Motorola for help penetrating a large alliance partner. When Santa Clara, Calif.-based application solution integrator (ASI) RedLine Solutions needed some advice on which version of Microsoft's operating system to target for a product a year out, "they put us in touch with a person within Microsoft," says Todd Baggett, RedLine's CEO. "That relationship helped us get answers a lot faster than we could as a small company."
Solution Providers: The largest array of services are focused on solution providers, with specific programs individualized to each partner.
Business Model Consulting: While of course it's up to the partner in question, Motorola advocates transitioning to a new business model to thrive in the new marketplace. The ASI model puts a heavier weight on software and value services over hardware as sources of revenue. Motorola endorses the mission of the Solutions First Council--a group of solution providers helping others transition to this new model.
Brian Marcel, co-founder of the group, has been a Symbol partner since 1985. His company, IBCS, has been through at least three business models. "About three years ago, the senior vice president of EMEA for Symbol had a chat with me one on one, and she asked me, 'What would you like Symbol to do for you?' I almost fell off my chair. I said 'give me some money for a consultant so I can get to the next level in my business. She said okay, and she did."
The resulting roadmap helped IBCS begin transitioning to the ASI model; two years into the transition, the company is well along the way from 90 percent hardware to a 30/40/30 percent mix.
Product Collaboration: In addition to focus groups, "They're getting us involved in the design cycle early to identify key requirements by customer segment," says RedLine's Baggett. "That's relatively new--with most manufacturers you see the product when it's done." At the same time, "we involve them in areas we never did before, such as our software design."
Mobility Assessments: "Many companies do not know how to operationalize mobility," says Motorola's Self; the Industry Solutions Group will go in to a customer alongside a partner to make recommendations on business processes, applications, ROI and TCO validation and the like. "That generates a lot of business for partners."
This also helps partners pick up the skill set. "They allowed our team to shadow theirs, so now our team can go out and deliver these services to customers," says Gina Gallo, president of Stratix Corp., a large mobile enterprise solution provider.
Web Site Improvement/ Promotion: Motorola revamped its Web site to offer more interactive features, highlight partner contributions and invite visitors to connect with a partner. "We also make sure partners' Web sites are updated, interactive and relevant, and teach them how they can utilize search engine optimization to drive traffic to the site, build their own databases and nurture those contacts," says Eduardo Conrado, Motorola's corporate vice president, global marketing and communications.
Matchmaking: Tapping the value of the trust network is a core tenet of the new channel. Motorola was an early adopter of the "speed dating" approach to meeting many potential partners in a short time to look for synergies.
But matchmaking also occurs day to day. When RedLine needed a partner in Canada, "I reached out to Motorola channel executives in that area, and asked who the strong players are," says Baggett. They recommended a partner that RedLine is now engaging on the project.
Marketing: The program still includes MDF dollars and co-marketing programs such as Webinars, trade shows and advertising campaigns, but some partners also invite Motorola's vertical market experts to speak at their customer conferences, sharing market insights. Among the many ways Motorola works with Stratix, the vendor helped the company with a Web site enhancement and a rebranding.
Innovation: Reaching out to alliance, ISV and other solution providers isn't just about meeting today's needs. It's also designed to foster the innovation that will satisfy tomorrow's marketplace. Solution providers also rely on Motorola to help them spot emerging trends and new opportunities for innovation. "The fact that they're looking forward helps to shorten our time to market," says RedLine's Baggett. "They've done a really good job helping us. We feel we are an extension of Motorola."
"We need them not only for technology, but for leadership in technology and innovation--showing us the latest and greatest and what's going on out there," says Broad Reach's Fildey. "They live and breathe innovation."
Imagine this scenario 15, or even 5, years ago: A group of unified communications executives looks to start a new mobility-focused solution provider business; they have voice and communications expertise, but need technical and marketing skill sets for the mobility market. So they turn to 
