This IDC study analyzes the disruptive effects of software as a service (SaaS) on the channel partner community and what being a partner to a software vendor might look like in the future. SaaS providers are seeking rapid expansion of their channel strategies as a means to meet their targets for customer acquisition and growth. However, the question of how the SaaS delivery model will impact the traditional channel has become an increasingly common discussion and unknown variable. IDC conducted research to gain a deeper understanding about the channel development and execution practices of software vendors with SaaS offerings.

"The disruptive nature of the SaaS delivery model has progressed along the path of seriously impacting traditional partner revenue streams," said Erin TenWolde, senior analyst, Software as a Service. "Two big wrinkles are obviously the subscription revenue stream associated with SaaS solutions and selling 'virtual' products where there is nothing to physically ship, implement, or keep on the shelf. This is going to drastically change the way partners and SaaS providers engage with one another in the future."

Darren Bibby, senior analyst, Software Sales Channels, stated, "One of the interesting things to watch in the coming years will be the shift of technology-centric solution providers to business process consultants that can help customers get the most out of their SaaS solutions."