Software as a Service (SaaS) providers are seeking rapid expansion of their channel strategies as a means to meet their growth targets, says a new research study from IDC.

According to IDC's new study ‘The Emerging SaaS Channel’, the disruptive nature of the SaaS delivery model has progressed along the path of seriously impacting traditional partner revenue streams.

"Two big wrinkles for partners are obviously the subscription revenue stream associated with SaaS solutions as well as selling 'virtual' products where there is nothing to physically ship, implement, or keep on the shelf," said Erin TenWolde, senior analyst, Software as a Service. "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. We will start to see some new types of partners emerging."

IDC believes that partnering is going to be key towards market expansion in the SaaS ecosystem. IDC recommends that SaaS providers build out their formal partner roadmap and be as explicit as possible about the direction that partners can take to eliminate conflict. This will require open communication and transparency in working with partners.