1. © The 2112 Strategy Group, LLC, 2012 No unauthorized republication or distribution Sizing Up Channel Business Acumen Lawrence M. Walsh October 2012

2. © The 2112 Strategy Group, LLC, 2012 No unauthorized republication or distribution No, his mind is not for rent; To any god or government. Always hopeful, yet discontent, He knows changes aren't permanent, But change is. Tom Sawyer, Moving Pictures, 1981

3. © The 2112 Strategy Group, LLC, 2012 No unauthorized republication or distribution State of the Channel is Change Hardware and software sales declining Commoditization is accelerating Entering the Post-PC era Cloud, cloud, cloud Mobility is everywhere Big Data is a big deal Rethinking value expectations, delivery New, evolving business models Time to reinvent the partnership model

4. © The 2112 Strategy Group, LLC, 2012 No unauthorized republication or distribution New Opportunities General IT spending continues to increase – will top $3.2 trillion in 2013 Businesses investing in business applications, communications, social collaboration and mobility Services is the medium in which technology is delivered and consumed Market opening wide for advanced capabilities

5. © The 2112 Strategy Group, LLC, 2012 No unauthorized republication or distribution Things to Think About Independent Profitability Relevancy to Customers Value in 30 Seconds Achieving Sales Excellence Evolutionary Roadmap Product Development Brand Awareness & Value True Technology Partners

6. © The 2112 Strategy Group, LLC, 2012 No unauthorized republication or distribution Growth is Not a Choice, But it Ain’t Easy

7. © The 2112 Strategy Group, LLC, 2012 No unauthorized republication or distribution Long-Term Growth Ambitions

8. © The 2112 Strategy Group, LLC, 2012 No unauthorized republication or distribution Financing Growth (Investments)

9. © The 2112 Strategy Group, LLC, 2012 No unauthorized republication or distribution Financing Ops vs. Growth

10. © The 2112 Strategy Group, LLC, 2012 No unauthorized republication or distribution Comparative Growth Curves

11. © The 2112 Strategy Group, LLC, 2012 No unauthorized republication or distribution Actual vs. Acceptable Growth Rates

12. © The 2112 Strategy Group, LLC, 2012 No unauthorized republication or distribution Channel Actual Growth Trends

13. © The 2112 Strategy Group, LLC, 2012 No unauthorized republication or distribution Sales is Paramount

14. © The 2112 Strategy Group, LLC, 2012 No unauthorized republication or distribution Cloud & Service Model Stresses Sales TechnologyPartnerships Service Business Sales Technology Partnerships Service Business Conventional Services Model Future Services Model

15. © The 2112 Strategy Group, LLC, 2012 No unauthorized republication or distribution Radical Fundamentals

16. © The 2112 Strategy Group, LLC, 2012 No unauthorized republication or distribution Set Goals

17. © The 2112 Strategy Group, LLC, 2012 No unauthorized republication or distribution Long-Term Growth Ambitions

18. © The 2112 Strategy Group, LLC, 2012 No unauthorized republication or distribution Plan Ahead

19. © The 2112 Strategy Group, LLC, 2012 No unauthorized republication or distribution Planning For Growth

20. © The 2112 Strategy Group, LLC, 2012 No unauthorized republication or distribution Business Instrument Gaps More than 2/3 of the channel lack basic business instruments for guiding operations and strategic development

21. © The 2112 Strategy Group, LLC, 2012 No unauthorized republication or distribution Invest

22. © The 2112 Strategy Group, LLC, 2012 No unauthorized republication or distribution Growth Investments

23. © The 2112 Strategy Group, LLC, 2012 No unauthorized republication or distribution Measure (Often)

24. © The 2112 Strategy Group, LLC, 2012 No unauthorized republication or distribution Minimum Review Period Review of Strategic Plans

25. © The 2112 Strategy Group, LLC, 2012 No unauthorized republication or distribution Adjust

26. © The 2112 Strategy Group, LLC, 2012 No unauthorized republication or distribution Plan Again

27. © The 2112 Strategy Group, LLC, 2012 No unauthorized republication or distribution Wash, Rinse, Repeat

28. © The 2112 Strategy Group, LLC, 2012 No unauthorized republication or distribution Radical Fundamentals AssessGoalsPlanInvestMeasureAdjust Recognition Commitment Risk Acceptance Execution Assignment/ Responsibility Accountability Rewards & Penalties Continual Change

29. © The 2112 Strategy Group, LLC, 2012 No unauthorized republication or distribution Think Forward Research, Analyze, Understand Have a Vision & Value Set Goals –Financial –Performance –Development Plan, Plan and Plan Create, Not Just Resell Market: Shout It Loud & Proud Don’t Fear Competition Collaborate and Partner Don’t Stop; Don’t Get Discouraged

30. © The 2112 Strategy Group, LLC, 2012 No unauthorized republication or distribution From the point of ignition To the final drive The point of a journey Is not to arrive Anything can happen... Prime Mover Hold Your Fire, 1987 From the point of ignition To the final drive The point of a journey Is not to arrive Anything can happen... Prime Mover Hold Your Fire, 1987

31. © The 2112 Strategy Group, LLC, 2012 No unauthorized republication or distribution Larry Walsh lmwalsh@the2112group.com Blog www.channelnomics.com Twitter/Facebook: @lmwalsh2112 @Channelnomics @the2112group