The AI Wave: Transforming the Enterprise Partner Ecosystem
Partners of leading enterprise solution providers, especially in the mid-market, generate a significant portion of their revenue from implementing and customizing these solutions through software development. Once the system goes live, the client becomes a "cash cow" requiring regular upgrades and additions to the code, which adds to the revenue alongside the Cloud commissions paid by the solution provider. It's a clear business model. In the enterprise market, it's estimated that partners bill 1 to 3 times the annual subscription or license cost. This amount has been decreasing for years with the advent of Cloud subscription models, as it's challenging to justify service costs exceeding the solution's price.
However, with the increasing use of AI in software development, virtually anyone with minimal technical knowledge can develop, modify, or even correct software code. As Thomas Dohmke, the CEO of GitHub, the largest portal for software developers, stated at his TED Conferences presentation in April: "With AI, anyone can be a coder now." It's clear that if becoming a developer is easier, then making the necessary software adaptations or configurations for an enterprise system could also be more accessible. This will have a devastating effect on the business model of enterprise solution partners.
Is it time for a new, or at least revamped, partner business model?
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