Channels Ecosystem Landscape 2022

What is the Canalys Channels Ecosystem Landscape?

We have developed this research to bring focus to the underlying technology that will drive competitive advantage in the decade of the ecosystem. The hundreds of software companies represented in the landscape are providing automation and advanced digital capabilities to help companies design, develop, execute and manage a broad partner and alliance ecosystem.

There are increasing demands on channel professionals to find, recruit, onboard, develop, incentivize, co-sell, co-market, co-innovate, measure, manage and report on partner value at scale. Automation, deeper integrations and data-driven decision-making are creating measurable competitive advantage (through partnerships) and are quickly becoming table stakes in the industry.

Canalys research shows that there are now 223 companies forming the ecosystem software landscape represented here. These companies represented US$3.9 billion in channel category revenue and raised over US$3 billion in private equity funding last year. The latest Canalys forecasts show that this channel software market will reach US$8.9 billion in revenue by 2027. This research currently excludes China, India, and parts of SE Asia as Canalys continues to examine the markets and to robustly apply our global research methodology.

Some interesting facts about this landscape:

The average company is 17 years old. 17% of companies are less than five years old.
Two thirds of companies hail from the US. The UK is next with 18 companies, then Canada with 13, then France and Germany with eight each.
Top regions in the US are California with 53 companies, Massachusetts with 15, and New York and Texas, both with 11.
26,459 employees are focused on building, selling and marketing channel ecosystem software.

Canalys tracks the channels ecosystem as part of its renowned worldwide Channels Analysis services. We also conduct bespoke projects to help vendors leverage more power from the channel ecosystem. Get in touch with us to find out more.

Canalys Channels Ecosystem Landscape 2022

The Channels Ecosystem Landscape encompasses a group of technologies that help companies develop, design and execute plans to find, recruit, onboard, develop, enable, incentivize, co-sell, co-market, co-innovate, collaborate, manage, measure and report on partners. Software companies providing these technologies deliver automation of indirect sales processes, workflows and partner programs, and are becoming vital to a vendor’s ability to find, win, serve and retain its customers and partners.

The channels ecosystem ‘‘islands’’

Channel data management

Manages channel partner data, including data from points of sale, and inventory and incentive data, from a single data platform that provides actionable insights and streamlines decision-making processes. These automated tools use AI, machine learning and predictive modeling.

Channel finance, pricing and inventory

Governs indirect sales financials, streamlines reporting processes, calculates true transactional values and avoids allocation errors. Optimizes processes involving pricing, demand forecasting, gross-to-net accounting calculations, inventory planning and price adjustments.

Channel incentives management

Helps develop and manage channel incentive programs, spanning allotment, calculation and issuance of performance-based incentives to drive positive behavioral modifications to the partner ecosystem. Common incentives include discounts, rebates, market development funds, co-op funds and sales performance incentive funds.

Channel learning and readiness

Helps partner organizations to train and develop employees through the design and delivery of up-to-date training initiatives and resources, spanning training modules, competencies, certifications, learning management systems, online portals, education tracking and sales enablement tools.

Partner relationship management

Automates various programmatic activities around the management of partner lifecycles. Common features include partner recruitment, onboarding, training, performance-tracking, co-selling, co-marketing, co-innovation, collaboration, enablement and communication. Often seamlessly integrates with existing systems, such as CRM, marketing automation, content management, ERP, payment gateways and collaboration applications.

Through-channel marketing automation

Helps vendors empower their partners to effectively communicate, market and advertise locally while maintaining global brand consistency. Automated platforms provide scale, control and governance that enables partners to generate marketing campaigns using market development funds and proven insights.

Channel Ecosystem Management

This group supports a broad array of partner types, covering influence, transaction, transaction-assist, retention, and technology, strategic and business alliances. Supports the entire customer buying journey and augments marketing, sales, customer success, product and strategy within an organization. Helps facilitate multi-directional relationships and activities with partners across the entire channel ecosystem. Commonly aids in recruitment, visualization, influence, partner attribution, data, account mapping, marketplace, technology integrations, delivering management, measurement, real-time monitoring and orchestration to drive effective go-to-market strategies.

There are five 'islands' within this -

Ecosystem recruitment and visualization - Assists in planning, identifying, targeting and recruiting non-traditional partners to drive the expansion of the channel ecosystem and the total addressable market. Provides actionable go-to-market and route-to-market expansion beyond current buyer, industry, geography, segment, delivery or product boundaries.
Ecosystem influence and attribution - Supports marketing attribution in the post-cookie marketing environment, delivering recognition and incentivization of affiliates, advocates, ambassadors and influencer partners. Helps vendors’ data-driven platforms quantify partner influence and activities and their effect on marketing, sales and retention.
Ecosystem data and mapping - Enables data-sharing opportunities with and between partners in a controlled and secure manner. Automates account mapping to leverage network effects and streamlines collaboration, co-marketing, co-selling, value creation and co-innovation.

Ecosystem marketplace and integrations - Helps B2B-centric organizations with the planning, design and execution of internal and external digital marketplaces to expand market opportunities. Supports changing business models toward subscription and consumption models and provides frictionless execution of customer procurement and provisioning of solutions. Assists in marketplace deployment, storefront customization, API integration and listing support, among other aspects, to streamline the workflows of all stakeholders.
Ecosystem management and orchestration - Automates and simplifies various activities of multi-directional partnerships across the broader channel ecosystem. Supports ecosystem planning, programs, processes and people, including partner onboarding, training and development, co-selling, enablement, collaboration, performance reporting and insights. Often seamlessly integrates with other channel and ecosystem tools.