Copyright TechTarget - All rights reserved https://cyber.law.harvard.edu/rss/rss.html Techtarget Feed Generator en Mon, 27 Apr 2026 01:08:23 GMT https://www.techtarget.com/searchitchannel editor@techtarget.com <p>Core HR (core human resources) is an umbrella term that refers to the essential, mandatory and fundamental tasks and functions of an organization's HR department as it manages the <a href="https://www.techtarget.com/searchhrsoftware/definition/employee-life-cycle">employee lifecycle</a> and develops human capital. This includes all the tasks related to employee recruitment, onboarding, management, development and compensation that are overseen by a CHRO or other C-<br>suite-level HR leader.</p> <p>HR personnel involved in core HR capture basic data about employees to keep employee data timely and gain actionable insights, which help them optimize <a href="https://www.techtarget.com/searchhrsoftware/feature/How-to-create-an-employee-journey-map">employee journeys</a>. They also use software to automate, streamline, and manage various HR processes, from recruitment to offboarding.</p> <p>Core HR helps companies improve employee experience and compliance, among other benefits.</p> <section class="section main-article-chapter" data-menu-title="Importance of Core HR"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Importance of Core HR</h2> <p>An essential part of effective HR management and in developing and enhancing <a href="https://www.techtarget.com/searchhrsoftware/definition/employee-experience">employee experiences</a>, core HR is foundational to the HR function and supports an organization's goals and objectives.</p> <p>A streamlined core HR process yields advantages like improved internal communication between HR staff and other employees. HR personnel can also use various software tools to automate HR processes, such as <a href="https://www.techtarget.com/searchhrsoftware/definition/employee-onboarding-and-offboarding">onboarding and offboarding</a>, workforce planning, and benefits administration. Automation saves time and helps them focus on other, more strategic tasks for their and the organization's benefit.</p> <p>Core HR processes and tools also deliver actionable <a href="https://www.techtarget.com/searchhrsoftware/tip/10-HR-analytics-tools-that-can-optimize-your-workforce">insights gathered through data analytics</a>. Core HR software systems help to centralize data storage and can enhance data security. HR staff can use data and insights to inform their actions and decisions related to the management of employee journeys and enhancement of employee experiences. In those ways, HR personnel can improve employees' workplace productivity, engagement, and motivation, facilitating employee retention and reducing <a href="https://www.techtarget.com/whatis/definition/employee-churn">employee churn</a> (turnover).</p> </section> <section class="section main-article-chapter" data-menu-title="Core HR functions of the human resources department"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Core HR functions of the human resources department</h2> <p>For most organizations, HR is a vital department, with its personnel providing several core functions. Here, <i>core</i> means functions essential to the company meeting its stated goals and objectives through the effective development, retention, and utilization of human capital.</p> <p>The core HR functions include:</p> <ul class="default-list"> <li>Employee recruitment and hiring.</li> <li>Collection and storage of employee data.</li> <li>Payroll and compensation.</li> <li>Benefits administration.</li> <li>Document signing.</li> <li>Internal relations and employee engagement.</li> <li>Employee training and development.</li> <li>Employee performance management.</li> <li>Employee health and safety.</li> <li>HR analytics and reporting.</li> <li>HR <a href="https://www.techtarget.com/searchdatamanagement/definition/compliance">compliance</a>.</li> </ul> <p>Facilitating employee self-service (<a href="https://www.techtarget.com/searchhrsoftware/definition/employee-self-service">ESS</a>) for tasks like requesting time off or updating personal details is a core HR function. Some companies also consider HR strategy and planning part of core HR since these are crucial to develop, manage, and optimize the human capital needed for organizational success.</p> <p>Core HR is sometimes used to mean these fundamental HR responsibilities in human capital management (<a href="https://www.techtarget.com/searchhrsoftware/definition/human-capital-management-HCM">HCM</a>).</p> </section> <section class="section main-article-chapter" data-menu-title="How to manage core HR processes"> <h2 class="section-title"><i class="icon" data-icon="1"></i>How to manage core HR processes</h2> <p>Core HR processes encompass the whole employee journey, covering HR-related areas such as the following:</p> <ul class="default-list"> <li><b>Talent acquisition and management. </b>This includes processes and practices to find the right candidates for specific roles, recruiting and onboarding new employees, and building a high-performance workforce through training, career advancement opportunities and performance management.</li> <li><b>Benefits.</b> This includes tracking employee benefits like health, dental and vision insurance, <a href="https://www.techtarget.com/whatis/feature/15-advantages-and-disadvantages-of-remote-work">remote work</a>, flexible hours, paid time-off and student loan assistance.</li> <li><b>Training and learning management.</b> This includes initial employee training and orientation, and training for upskilling and reskilling.</li> <li><b>Payroll and compensation.</b> This includes tracking employees' time and attendance, paying salaries, withholding taxes or other deductions, maintaining benefits data, developing a payroll policy, and keeping meticulous records of payroll transactions for compliance and tax purposes.</li> <li><b>Human resource planning.</b> This includes developing and improving HR processes and strategies for <a href="https://www.techtarget.com/searchhrsoftware/feature/Challenges-of-AI-in-recruitment">recruitment</a>, performance management, employee engagement and succession planning. It also includes identifying current and future human resources needs to align the organization's overall strategic plan and identifying and addressing areas of improvement regarding talent availability, staffing levels, and skills gaps.</li> <li><b>Performance management.</b> This includes setting performance goals for employees, monitoring their performance, conducting <a href="https://www.techtarget.com/searchhrsoftware/tip/Performance-appraisal-types-for-HR-leaders-to-consider">performance appraisals</a>, providing feedback to improve performance, and recognizing and rewarding employees for their achievements.</li> <li><b>Offboarding.</b> This includes everything related to managing an employee's departure, such as <a href="https://www.techtarget.com/searchhrsoftware/feature/Exit-interview-questions-to-ask-departing-employees">exit interviews</a>, processing final pay and benefits, deleting their data, revoking systems access, completing all necessary paperwork, facilitating knowledge transfer and responsibility handover, and ensuring that the departure follows relevant laws and policies.</li> </ul> <p><a href="https://www.techtarget.com/searchhrsoftware/definition/HR-technology">HR technology</a> and software can help manage and streamline these core HR processes. Various tools are available that simplify the processes of storing, organizing, accessing, managing and deleting the information and data vital to core HR activities. Software also makes core HR processes more efficient by automating many data-driven or time-consuming tasks and enhancing the overall value of the HR function.</p> <p>HR technology for payroll can support tracking employees' timesheets, attendance, and time off; calculating wages, salaries, overtime, income tax deductions; and contributions toward insurance and other benefits. The software ensures that payroll is processed correctly. Error-free and timely payroll processing helps organizations maintain <a href="https://www.techtarget.com/searchhrsoftware/tip/Top-employee-retention-KPIs-for-HR">employee morale and retention</a>, keep accurate records to show compliance with tax laws and labor regulations, and avoid costly penalties.</p> <p>Training-based software could include a learning management system (<a href="https://www.techtarget.com/searchcio/definition/learning-management-system">LMS</a>) that facilitates efficient administration and delivery of learning and development (L&amp;D) programs. Some LMS can design customized L&amp;D programs with personalized learning paths for each employee. Many tools also track whether employees have completed required programs, assess performance, and provide data-driven insights to drive improvement.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineImages/fin_apps-continuous_performance_management_desktop.jpg"> <img data-src="https://www.techtarget.com/rms/onlineImages/fin_apps-continuous_performance_management_desktop_mobile.jpg" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineImages/fin_apps-continuous_performance_management_desktop_mobile.jpg 960w,https://www.techtarget.com/rms/onlineImages/fin_apps-continuous_performance_management_desktop.jpg 1280w" alt="A graphic showing a timeline of key events in continuous performance management."> <figcaption> <i class="icon pictures" data-icon="z"></i>A timeline of key events in continuous performance management. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> </section> <section class="section main-article-chapter" data-menu-title="What is core HR information or data?"> <h2 class="section-title"><i class="icon" data-icon="1"></i>What is core HR information or data?</h2> <p>Core HR data refers to all the personnel-related information organizations must collect and maintain to employ staff legally. This includes the following:</p> <ul class="default-list"> <li>Employee contact information.</li> <li>Birth dates.</li> <li>U.S. Social Security numbers or national identification numbers.</li> <li>Employment eligibility forms.</li> <li>Salary and payroll information.</li> <li>Compliance with organizational or government rules.</li> <li>Performance reviews.</li> <li>Work hours and absence tracking (e.g., sick days, vacation days).</li> <li>Training and development records.</li> <li>Benefits information.</li> </ul> <p>Core HR data also includes information such as job descriptions, titles, team demographics (gender, race, ethnicity, age, nationality), and organizational structures.</p> </section> <section class="section main-article-chapter" data-menu-title="What is core HR software?"> <h2 class="section-title"><i class="icon" data-icon="1"></i>What is core HR software?</h2> <p>Besides fundamental HR <i>processes</i>, core HR also encompasses HR <i>software and technology</i> organizations can use to streamline these processes and manage basic personnel-related information and processes. Examples include the following:</p> <ul class="default-list"> <li><a href="https://www.techtarget.com/searchhrsoftware/news/366552792/Oracle-adds-employee-recognition-rewards-to-its-cloud-HCM">Oracle Cloud HCM</a>.</li> <li><a href="https://www.techtarget.com/searchhrsoftware/news/366628460/SAP-hopes-SmartRecruiters-buy-will-bolster-SuccessFactors">SAP SuccessFactors HCM Suite</a>.</li> <li><a href="https://www.techtarget.com/searchhrsoftware/definition/Workday">Workday Human Capital Management</a>.</li> <li><a href="https://www.techtarget.com/searchhrsoftware/news/366570816/HR-tech-market-now-more-competitive-with-HiBobs-acquisition">HiBob HCM Solution</a>.</li> <li><a href="https://www.techtarget.com/searchhrsoftware/news/366614475/ADP-expands-HR-tools-with-Lyric-HCM-and-WorkForce-buy">ADP Workforce Now</a>.</li> <li>Bamboo HR.</li> <li>Kallidus.</li> <li>Darwinbox.</li> <li><a href="https://www.techtarget.com/searchenterprisedesktop/news/252505447/Mondaycom-brings-document-editing-to-project-management">Monday.com</a>.</li> </ul> <p>These and other HR software tools are typically called human resource management systems (HRMS), human resource information systems (<a href="https://www.techtarget.com/searchhrsoftware/definition/HRIS">HRIS</a>), or HCM platforms.</p> <p>HRMS acts as the most generalized term used in relation to HR (and core HR), although it is also commonly used synonymously with HRIS. Core HR technology systems have long been marketed under the labels HRIS and HRMS, but HCM has begun to displace both terms.</p> <p>HRIS provides technology for storing employee data and automating core HR functions, while HRMS vendors add HCM features. The HRIS acts as a centralized database for employee information. It enables HR staff to handle core HR tasks like recruitment, training, and compensation. HCM is also referred to as either a set of HR processes or the name of the software category.</p> <p>To put it differently, HRIS is the core administrative system, while HCM also covers employee-centric processes like time tracking and labor management. HRMS platforms usually include all HRIS functions and additional features like payroll, talent management and analytics.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineImages/hrsoftware-core_software.jpg"> <img data-src="https://www.techtarget.com/rms/onlineImages/hrsoftware-core_software_mobile.jpg" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineImages/hrsoftware-core_software_mobile.jpg 960w,https://www.techtarget.com/rms/onlineImages/hrsoftware-core_software.jpg 1280w" alt="A graphic listing common, primary examples of core HR information and processes" height="408" width="520"> <figcaption> <i class="icon pictures" data-icon="z"></i>HR departments use core HR software to aid their basic tasks and processes. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> </section> <section class="section main-article-chapter" data-menu-title="What are the functions of core HR software?"> <h2 class="section-title"><i class="icon" data-icon="1"></i>What are the functions of core HR software?</h2> <p>Although functions vary from vendor to vendor and specific software, core HR platforms typically store basic information about an organization's employees in a centralized database. Employee data storage is one of the most basic functions of core HR software; the database contains personally identifiable information (<a href="https://www.techtarget.com/searchsecurity/definition/personally-identifiable-information-PII">PII</a>) and other information, such as the following:</p> <ul class="default-list"> <li>Job specifics, such as title and description.</li> <li>Payroll information, such as salary and tax withholding.</li> <li>Enrollment data for benefits, such as health, dental and vision.</li> <li>Sick days and vacation days.</li> <li>Documentation for mandatory training.</li> <li>Worker eligibility forms documenting the right to work in the country of employment.</li> </ul> <p>Additionally, core HR software may include features that support or automate core HR processes, such as the following:</p> <ul class="default-list"> <li>Evaluating employee performance.</li> <li>Data <a href="https://www.techtarget.com/searchbusinessanalytics/tip/10-top-data-discovery-tools-for-insights-and-visualizations">visualization tools</a> like dashboards.</li> <li>HR document signing and storage.</li> <li>Tracking benefits.</li> <li>Payroll processing.</li> </ul> <p>Many products include ESS portals that enable employees to independently access their information and self-manage HR-related tasks like updating personal data, requesting time off, or downloading pay stubs.</p> <p>Some core HR systems accommodate storage and management of HR documents and org charts and digital signing of contracts and agreements. In recent years, software has emerged that includes built-in data analytics capabilities, visualization dashboards, <a href="https://www.techtarget.com/whatis/feature/9-essential-social-media-guidelines-for-employees">social media</a> capabilities and other features, including the following:</p> <ul class="default-list"> <li>Anonymous, sentiment and check-in surveys.</li> <li>Attrition trends.</li> <li>Pay error detection.</li> <li>Automated candidate matching.</li> <li>Automated tax filings (quarterly and/or annual).</li> <li>AI-assisted skills development.</li> </ul> <p>Many core HR systems are now cloud-based, which can aid in improving data accessibility. These systems usually include strong security measures like data backup and <a href="https://www.computerweekly.com/opinion/Rethinking-secure-comms-Are-encrypted-platforms-still-enough">encryption</a>. The move from on-premises to cloud also allows HR teams to consolidate employee data easily for payroll, L&amp;D and compliance purposes. These platforms can automate many core HR tasks, increasing efficiency and productivity.</p> <p>Cloud-based systems use the software-as-a-service (<a href="https://www.techtarget.com/whatis/video/An-explanation-of-software-as-a-service-SaaS">SaaS</a>) delivery model and <a href="https://www.techtarget.com/searchstorage/definition/pay-as-you-go-cloud-computing-PAYG-cloud-computing">pay-as-you-go</a> pricing that avoids expensive hardware and software licenses. This can make the HR function more cost-effective.</p> <p>Many cloud-based core HR software products are <a href="https://www.techtarget.com/searchcloudcomputing/definition/cloud-scalability">scalable</a>, so they can readily align to changing needs. They might support multilanguage requirements for geographically dispersed HR teams and include ESS portals and real-time reporting and analytics capabilities.</p> <div class="youtube-iframe-container"> <iframe id="ytplayer-0" src="https://www.youtube.com/embed/uzL1ZqzlWcw?autoplay=0&amp;modestbranding=1&amp;rel=0&amp;widget_referrer=null&amp;enablejsapi=1&amp;origin=https://www.techtarget.com" type="text/html" height="360" width="640" frameborder="0"></iframe> </div> </section> <section class="section main-article-chapter" data-menu-title="Core HR software self-service portal"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Core HR software self-service portal</h2> <p>Many software applications that support core HR functions provide managers and employees with an ESS portal. An ESS portal lets employees access, manage and make HR-related requests independently and without involving HR staff. The ESS portal is made available to employees as a secure web-based platform, typically, or a mobile application that the organization's HR department provides.</p> <p>Through the website or app, employees can perform tasks like managing their personal information, viewing pay stubs, enrolling in benefits, or requesting time off without needing HR department assistance. This improves accessibility and speeds up these tasks. It reduces the administrative workload of the HR department, allowing them to focus on more strategic tasks.</p> <p>Furthermore, ESS gives employees more control over their information and documents, fostering a sense of ownership while enhancing their motivation and performance. Also, employees are responsible for keeping their data updated, which reduces the potential for error in payroll processing or benefits administration. By controlling who can view employee information, the ESS enhances data security and <a href="https://www.computerweekly.com/opinion/Privacy-at-a-crossroads-in-the-age-of-AI-and-quantum">privacy</a>.</p> </section> <section class="section main-article-chapter" data-menu-title="Integration with talent management and other systems"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Integration with talent management and other systems</h2> <p>The concept of core HR functions is changing quickly due to major cultural shifts in employment and HR technology. Core HR software plays a major role in this series of changes, as it lets HR departments take on more strategic responsibilities. Software that automates accessing, managing and tracking core HR records is often integrated with software for related HR processes. For example, the software can integrate core HR with other HR functions like <a href="https://www.techtarget.com/searchhrsoftware/definition/talent-management">talent management</a>, <a href="https://www.techtarget.com/searchhrsoftware/definition/workforce-planning">workforce planning </a>and learning management.</p> <p>Talent management systems support core talent management processes like recruitment, onboarding, performance management, training, payroll and professional development. Core HR software typically overlaps with the same areas. Core HR information such as job titles of employees, the number of employees and their salaries is also vital for effective HR management.</p> <p><i>Core HR software covers many different areas that follow the employee journey. Learn about </i><a href="https://www.techtarget.com/searchhrsoftware/tip/15-must-have-HR-software-features-and-system-requirements"><i>different HR software features</i></a><i> and their requirements.</i></p> </section> Core HR (core human resources) is an umbrella term that refers to the essential, mandatory and fundamental tasks and functions of an organization's HR department as it manages the employee lifecycle and develops human capital. https://cdn.ttgtmedia.com/visuals/digdeeper/6.jpg https://www.techtarget.com/searchhrsoftware/definition/core-HR-core-human-resources Thu, 26 Mar 2026 14:45:00 GMT <p data-end="1757" data-start="1452">Marketing leaders must decide which trends deserve real investment and which are simply generating short-term attention. As AI, creator ecosystems, social commerce and analytics reshape customer engagement, organizations need to distinguish between durable shifts in marketing strategy and passing hype.</p> <p data-end="2055" data-start="1764">The trends shaping marketing now reflect<a href="https://www.techtarget.com/whatis/feature/The-role-of-technology-in-shaping-consumer-behavior"> changes in technology, consumer behavior</a> and channel strategy. Understanding which trends are influencing how customers discover, evaluate and buy products can help organizations make better decisions about where to focus budget, tools and execution.</p> <section class="section main-article-chapter" data-menu-title="1. Artificial intelligence and machine learning"> <h2 class="section-title"><i class="icon" data-icon="1"></i>1. Artificial intelligence and machine learning</h2> <p data-end="794" data-start="400">AI and machine learning (ML) continue to influence marketing because they streamline and personalize consumer experiences. These technologies automate repetitive tasks, freeing marketers to focus on strategy and creative initiatives. They also analyze large volumes of data to uncover insights that support more targeted, efficient marketing strategies and help teams adapt to changing consumer behavior patterns.</p> <p data-end="1123" data-start="796">AI and ML also help personalize the <a href="https://www.techtarget.com/searchcustomerexperience/definition/customer-journey-map">customer journey</a> by tailoring ads and product recommendations, as well as anticipating future consumer behavior. In this way, <a href="https://www.techtarget.com/searchenterpriseai/tip/Types-of-AI-algorithms-and-how-they-work">AI algorithms</a> can process a customer's past behavior, social media interactions and other signals to help companies respond more proactively to customer preferences.</p> <p data-end="1439" data-start="1125">Finally, AI and ML contribute to more effective <a href="https://www.techtarget.com/searchcustomerexperience/definition/customer-segmentation">customer segmentation</a>. Instead of relying only on broad demographic information, these technologies can identify more nuanced behavioral patterns and preferences. This helps brands create more tailored marketing campaigns that resonate with specific customer groups.</p> </section> <section class="section main-article-chapter" data-menu-title="2. AI-assisted search and discovery"> <h2 class="section-title"><i class="icon" data-icon="1"></i>2. AI-assisted search and discovery</h2> <p data-end="2748" data-start="2482">Search behavior is changing as consumers increasingly use conversational tools, AI-generated answers and social platforms to discover information, products and brands. For marketers, that means visibility now depends on more than traditional search rankings alone.</p> <p data-end="3023" data-start="2755">This shift affects how organizations think about content strategy, discoverability and customer journeys. Brands must create content that is clear, useful and structured to perform well across search engines, AI-generated summaries and social discovery environments.</p> <p data-end="3208" data-start="3030">As discovery becomes more fragmented, marketers need to adapt by optimizing content for multiple channels and formats rather than relying on traditional keyword strategies alone.</p> <blockquote class="main-article-pullquote"> <div class="main-article-pullquote-inner"> <figure> Search behavior is changing as consumers increasingly use conversational tools, AI-generated answers and social platforms to discover information, products and brands. </figure> <i class="icon" data-icon="z"></i> </div> </blockquote> </section> <section class="section main-article-chapter" data-menu-title="3. Chatbots and conversational customer engagement"> <h2 class="section-title"><i class="icon" data-icon="1"></i>3. Chatbots and conversational customer engagement</h2> <p>The <a href="https://www.techtarget.com/searchcustomerexperience/infographic/The-evolution-of-chatbots-and-generative-AI">increase in the use of chatbots</a>, including both AI-powered and rules-based versions, is a compelling trend for several reasons. First, chatbots offer companies a cost-efficient, round-the-clock customer service solution. They can handle multiple customer queries simultaneously, providing immediate responses and improving customer satisfaction levels. AI-powered chatbots learn from every interaction, enabling them to deliver increasingly personalized responses over time and enhance user engagement.<br><br>Second, chatbots are highly versatile marketing tools, used not only for customer service but also for product recommendations, appointment scheduling and lead qualification. This versatility becomes increasingly valuable as businesses seek to maximize their online engagement. Additionally, rules-based chatbots provide a consistent, reliable service that's adaptable to a brand's specific requirements, making them a preferable option for companies that deal with straightforward customer queries.</p> <p>Third, along with increasing customer engagement and potential revenue for businesses, chatbots save company resources -- both time and dollars.</p> </section> <section class="section main-article-chapter" data-menu-title="4. Personalized marketing"> <h2 class="section-title"><i class="icon" data-icon="1"></i>4. Personalized marketing</h2> <p>Brands that engage in <a href="https://www.techtarget.com/searchcustomerexperience/answer/What-are-the-different-types-of-marketing-personalization">personalized marketing</a> create a bond with their audience, enhancing customer satisfaction and loyalty. Unlike generic marketing, personalized marketing speaks directly to the customer, addressing that individual's unique needs and preferences. This shift to building trusting relationships and providing a better customer experience promises increased conversions, customer retention and, ultimately, revenue growth.</p> <p>Additionally, with advancements in AI and ML technologies, the possibilities for personalization are expanding. Brands can <a href="https://www.techtarget.com/searchcustomerexperience/tip/The-role-of-machine-learning-in-multitouch-attribution">analyze customer behaviors and preferences in real time</a>, allowing them to finetune marketing efforts to each customer. This leads to more effective and efficient marketing strategies, as resources are concentrated on the most impactful channels and methods, ultimately improving return on investment <a href="https://www.techtarget.com/searchcio/definition/ROI">(ROI</a>).</p> </section> <section class="section main-article-chapter" data-menu-title="5. Video marketing"> <h2 class="section-title"><i class="icon" data-icon="1"></i>5. Video marketing</h2> <p>The ubiquity of internet connectivity and the ever-increasing power of modern smartphones have made video content more accessible than ever before. Consumers can now stream high-quality video on the go, making it a powerful tool to <a href="https://www.techtarget.com/searchcustomerexperience/feature/Video-marketing-challenges-and-how-to-overcome-them">catch their attention</a> and deliver impactful messages. Moreover, platforms such as <a href="https://www.techtarget.com/whatis/definition/TikTok">TikTok</a>, as well as features like Instagram Reels and YouTube Shorts have popularized short-form video content, driving brands to adopt this format to reach and engage their audience.</p> <p>In addition, video content offers a unique blend of audiovisual elements that allows marketers to <a href="https://www.techtarget.com/searchcustomerexperience/feature/Benefits-of-video-marketing">tell more engaging and persuasive stories</a>, helping their products and services stand out in a saturated market. Video content can seamlessly incorporate customer testimonials, product demonstrations, behind-the-scenes insights and many other elements that build trust and cultivate a deeper connection with the audience or even encourage purchases.</p> <p>Lastly, video marketing impacts key metrics such as SEO, conversion and click-through rates. Research shows that incorporating videos into marketing emails can boost click-through rates, while embedding videos on landing pages can increase conversion rates. Indeed, <a href="https://www.techtarget.com/searchcustomerexperience/tip/Create-a-video-marketing-strategy-in-10-steps">successful video marketing</a> now aligns with the data-driven approach that modern marketing strategies strive to adopt.</p> <div class="extra-info"> <div class="extra-info-inner"> <h3 class="splash-heading">Which marketing trends deserve real investment?</h3> <p data-end="315" data-start="153">Not every marketing trend deserves the same level of attention. In practice, the trends that matter most are usually the ones tied to measurable business results.</p> <p data-end="380" data-start="317">For many marketing teams, that means focusing on areas such as:</p> <ul class="default-list"> <li>AI tools that improve content and workflow efficiency</li> <li>changes in how customers search for and discover brands</li> <li>creator and influencer programs that drive engagement</li> <li>social commerce features that shorten the path to purchase</li> <li>analytics that improve targeting, measurement and ROI</li> </ul> </div> </div> </section> <section class="section main-article-chapter" data-menu-title="6. Social commerce"> <h2 class="section-title"><i class="icon" data-icon="1"></i>6. Social commerce</h2> <p>By enabling direct purchases within the same social media apps where consumers connect, share and inspire each other, <a href="https://www.techtarget.com/searchcustomerexperience/definition/social-commerce">social commerce</a> platforms are transforming the shopping journey into a seamless, convenient experience. With features ranging from shoppable posts to in-app stores, brands have the opportunity to target and convert consumers within a familiar social context, effectively shortening the path to purchase.</p> <p>Moreover, social commerce leverages the power of <a href="https://www.techtarget.com/searchcio/definition/user-generated-content-UGC">user-generated content</a> and peer-to-peer <a href="https://www.techtarget.com/searchcustomerexperience/definition/social-media-influence">influence</a>, key elements in today's consumer decision-making process. Consumers can see how products look in real life, read reviews and even make inquiries to brands through direct messages, all in one platform. This immersive, interactive shopping experience, coupled with the ability to instantly share and discuss products with friends and followers, amplifies word-of-mouth marketing and encourages impulsive buying behaviors. Social commerce continues to gain momentum in the marketing landscape and can be used in conjunction with a marketing team's growing <a href="https://www.techtarget.com/searchcustomerexperience/definition/omnichannel">omnichannel</a> customer experiences.</p> </section> <section class="section main-article-chapter" data-menu-title="7. Influencer and creator marketing"> <h2 class="section-title"><i class="icon" data-icon="1"></i>7. Influencer and creator marketing</h2> <p>This marketing trend establishes an <a href="https://www.techtarget.com/whatis/feature/Generational-marketing-explained-Everything-you-need-to-know">authentic connection with audiences</a> that traditional advertising struggles to achieve. Influencers have a strong rapport with their followers, which makes their promotional content more engaging, relatable, impactful and trustworthy.</p> <p>The intersection of influencer marketing, video content and social commerce creates a potent combination for brands. As consumers continue to shop directly from social media platforms, influencers tap into this trend by creating <a href="https://www.techtarget.com/searchcustomerexperience/feature/The-top-video-marketing-trends">engaging video content showcasing products</a>, encouraging their followers to click through and make a purchase. This seamless integration of shopping and social media amplifies the efficacy of influencer marketing and underlines its importance in a company's marketing strategies.</p> <div class="youtube-iframe-container"> <iframe id="ytplayer-0" src="https://www.youtube.com/embed/Hjf-QV9ImDo?autoplay=0&amp;modestbranding=1&amp;rel=0&amp;widget_referrer=null&amp;enablejsapi=1&amp;origin=https://www.techtarget.com" type="text/html" height="360" width="640" frameborder="0"></iframe> </div> </section> <section class="section main-article-chapter" data-menu-title="8. Sustainable and ethical marketing"> <h2 class="section-title"><i class="icon" data-icon="1"></i>8. Sustainable and ethical marketing</h2> <p>The continued <a href="https://www.techtarget.com/searchcustomerexperience/feature/Why-is-sustainable-marketing-important">adoption of sustainable and ethical marketing</a> reflects a growing consumer consciousness around environmental impact and social issues. As people become increasingly informed and concerned about the biosphere, the ethical and sustainability practices of a business come into sharp focus for discerning would-be consumers. It's an opportunity for businesses to differentiate themselves, align with consumer values and forge stronger connections with their customer base.</p> <p>In addition, companies adopting sustainable and ethical marketing practices gain a competitive advantage. Research shows that consumers are willing to pay a premium for products and services from companies committed to <a href="https://www.techtarget.com/searchcustomerexperience/tip/How-to-create-a-diversity-and-inclusion-marketing-strategy">positive social and environmental impact</a>. As such, sustainable and ethical marketing is not just a trend, but a strategic approach likely to drive consumer behavior and loyalty.</p> </section> <section class="section main-article-chapter" data-menu-title="9. Authenticity and trust in brand content"> <h2 class="section-title"><i class="icon" data-icon="1"></i>9. Authenticity and trust in brand content</h2> <p data-end="4277" data-start="3991">As more content is produced with automation tools and distributed across crowded channels, authenticity has become more important in brand and campaign performance. Audiences are more sensitive to generic messaging and more responsive to content that feels useful, credible and human.</p> <p data-end="4566" data-start="4284">This puts pressure on marketers to improve brand voice, creator partnerships, customer proof points and overall message quality. In practice, trust is now part of performance: Content that feels more authentic is often better positioned to earn attention, engagement and conversion.</p> </section> <section class="section main-article-chapter" data-menu-title="10. Analytics, measurement and ROI discipline"> <h2 class="section-title"><i class="icon" data-icon="1"></i>10. Analytics, measurement and ROI discipline</h2> <p>Marketers increasingly rely on accurate data, analytics and measurement to understand customer behavior, improve targeting and prove marketing performance. The ability to capture and analyze large volumes of data enables businesses to anticipate market changes, predict customer behavior and adjust their marketing strategies accordingly, leading to improved efficiency and higher ROI.</p> <blockquote class="main-article-pullquote"> <div class="main-article-pullquote-inner"> <figure> For marketing leaders, the challenge is no longer spotting new trends, but deciding which ones deserve operational focus and budget. </figure> <i class="icon" data-icon="z"></i> </div> </blockquote> <p>The convergence of machine learning and big data is opening up new vistas in <a href="https://www.techtarget.com/searchbusinessanalytics/definition/predictive-analytics">predictive analytics</a>, allowing for more precise customer segmentation and targeting. With sophisticated analytics tools, marketers can derive actionable insights and make more informed decisions, from identifying the most effective marketing channels to optimizing campaign performance. Leveraging analytics is no longer a new trend; it is now a fundamental part of modern marketing strategy.</p> <p>Not every marketing trend will matter equally for every organization, but the strongest patterns are clear. AI, creator ecosystems, social commerce and better measurement are reshaping how brands reach and convert customers. For marketing leaders, the challenge is no longer spotting new trends, but deciding which ones deserve operational focus and budget.</p> <p><strong>Editor's note:</strong> <em>This article was updated to reflect current marketing priorities and to expand coverage of the trends shaping customer engagement now. </em></p> <p><i>Griffin LaFleur is a MarketingOps and RevOps professional working for Swing Education. Throughout his career, Griffin has also worked at agencies and independently as a B2B sales and marketing consultant.</i></p> </section> Marketing trends continue to shift as AI, social commerce, creator partnerships and data-driven personalization reshape how brands reach and engage customers. https://cdn.ttgtmedia.com/rms/onlineimages/customer_service13.jpg https://www.techtarget.com/searchcustomerexperience/feature/Marketing-trends-to-watch-for Tue, 24 Mar 2026 09:47:00 GMT <p>Modern hybrid cloud frameworks extend public cloud services into private infrastructure. While these capabilities make building a <a href="https://www.techtarget.com/searchcloudcomputing/definition/hybrid-cloud">hybrid cloud</a> easier, the bigger challenge is assembling a tool set that enables effective management of hybrid cloud infrastructure and workloads over the long term -- specifically, by helping to streamline tasks such as hybrid cloud administration, performance optimization, cost management and security.</p> <p>Correct tools are essential, especially as hybrid cloud becomes the default deployment model. According to VMware's "Private Cloud Outlook 2025: The Cloud Reset" <a href="https://www.vmware.com/docs/private-cloud-outlook-2025">report</a>, 92% of enterprises run a blend of private and public clouds. Additionally, 75% of respondents said this blended approach is an intentional strategy, which suggests that organizations value the flexibility of a hybrid cloud environment to meet specific use cases.</p> <section class="section main-article-chapter" data-menu-title="Why hybrid cloud management matters"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Why hybrid cloud management matters</h2> <p>In recent years, <a href="https://www.techtarget.com/searchcloudcomputing/definition/public-cloud">public cloud</a> vendors have rolled out a new generation of frameworks for hybrid cloud creation -- most notably, Azure Stack Hub and HCI, Azure Arc, AWS Outposts and Google Cloud Anthos. At the same time, more conventional hybrid cloud management platforms, such as VMware Cloud Foundation and Cisco Intersight, continue to thrive. In addition, Kubernetes can be useful as a platform for hybrid cloud management, especially for organizations that use Kubernetes services, like Elastic Kubernetes Service (EKS) Anywhere, to manage workloads deployed on private infrastructure using Amazon's managed Kubernetes service.</p> <p>These platforms provide a centralized way to deploy and administer workloads across a cloud environment that mixes private infrastructure with public cloud resources. Integration between these entities is a significant improvement over earlier hybrid cloud architectures, which more closely resembled a <a href="https://www.techtarget.com/searchcloudcomputing/definition/private-cloud">private cloud</a> and a public cloud running side by side. Modern tooling has made creating a hybrid cloud environment easier than ever.</p> <p>Yet, hybrid cloud management remains a major challenge, and the platforms and frameworks mentioned above don't fully solve it. They simplify and centralize the deployment of public cloud services on private infrastructure, but they don't always address hybrid cloud management requirements, such as workload provisioning, log aggregation and analysis, and governance enforcement. These tasks often require additional functionality beyond what's available in hybrid cloud frameworks.</p> <div class="youtube-iframe-container"> <iframe id="ytplayer-0" src="https://www.youtube.com/embed/Zae3jApGq-U?autoplay=0&amp;modestbranding=1&amp;rel=0&amp;widget_referrer=null&amp;enablejsapi=1&amp;origin=https://www.techtarget.com" type="text/html" height="360" width="640" frameborder="0"></iframe> </div> <h3>The importance of visibility in hybrid cloud</h3> <p>Hybrid clouds are, by their nature, especially complex and not fully centralized. Because they mix private and public cloud infrastructure and services, they make it harder to centralize monitoring and management than would be the case with a cloud environment that includes only private or only public resources.</p> <p>Hybrid cloud management demands an especially deep level of visibility. Visibility ensures that organizations have an accurate, continuously updated understanding of the status of all their cloud infrastructure and workloads, including both the private and public cloud components.</p> <p>The lack of effective hybrid cloud visibility can create challenges, such as the following:</p> <ul type="disc" class="default-list"> <li>Service disruptions resulting from failure to detect outages or performance anomalies across the various workloads hosted within a hybrid cloud.</li> <li>The inability to predict or optimize cloud spending due to poor visibility into the costs of both the private and public cloud infrastructure.</li> <li>Security risks, which could arise due to inconsistent access controls and governance policies across the private and public parts of the cloud environment.</li> <li>Difficulty modernizing or migrating hybrid cloud workloads because of a lack of understanding of where each workload resides, what its requirements are and so on.</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="3 types of hybrid cloud management tools"> <h2 class="section-title"><i class="icon" data-icon="1"></i>3 types of hybrid cloud management tools</h2> <p>The hybrid cloud management landscape is complex. Tools have overlapping functionality. And, since there are multiple approaches to implementing a hybrid cloud architecture -- such as building it directly on top of cloud infrastructure or using a platform like Kubernetes as an abstraction layer -- not all tools apply to all hybrid cloud configurations.</p> <p>That said, hybrid cloud management tools are generally categorized as one of three types of tools:</p> <ol type="1" start="1" class="default-list"> <li>Native tools built into frameworks for building a hybrid cloud.</li> <li>Third-party tools that integrate with hybrid environments but are not natively included in them.</li> <li>Tools for managing the physical infrastructure that serves as the foundation for hybrid clouds.</li> </ol> <h3>1. Native hybrid cloud management tools</h3> <p>The first category of management tools consists primarily of public cloud services that can extend into hybrid cloud environments. For example, if AWS Outposts is used to build a hybrid cloud architecture, the AWS public cloud's standard management tools -- including CloudWatch and CloudTrail -- can be used to help monitor the hybrid environment and manage logs. The Azure Stack suite of products provides a similar experience by integrating with Microsoft Azure public cloud's standard monitoring tools. Anthos does this as well, using Google Cloud Console.</p> <p>Platforms such as VMware Cloud Foundation and Kubernetes can be tied into some public cloud vendors' services, too. But, for the most part, they don't extend public cloud management tooling into hybrid environments. Instead, users manage hybrid environments via the native tooling that's built into the platforms, such as kubectl on Kubernetes. That said, some integrations between these platforms and public cloud platforms exist. For example, it's possible to use the AWS Identity and Access Management framework to govern some permissions within Kubernetes environments hosted by using Amazon EKS, a Kubernetes service available through the Amazon cloud.</p> <h3>2. Third-party hybrid cloud monitoring and management tools</h3> <p>Because of limitations in native hybrid cloud management tools, it's sometimes necessary to add third-party management tools. These tools can offer broader, richer functionality. They also offer the advantage of working across multiple cloud platforms at once, which is usually not the case when using cloud provider tools. This capability makes third-party hybrid cloud tools useful for businesses whose cloud strategy includes <a href="https://www.techtarget.com/searchcloudcomputing/feature/Multi-cloud-vs-hybrid-cloud-and-how-to-know-the-difference">multiple public clouds in addition to a hybrid cloud</a>.</p> <h3>3. Physical infrastructure integration and management</h3> <p>Hybrid cloud management isn't just about digital assets. It also extends to the physical hardware that hosts hybrid clouds. It's necessary to keep track of the servers, which hardware resources they provide and whether they're adequate to meet the hybrid cloud architecture's needs. Cloud providers have <a href="https://www.techtarget.com/searchcloudcomputing/tip/Evaluate-on-premises-vs-cloud-computing-pros-and-cons">extended their reach to on-premises</a> by bundling hardware with services and linking back up to their clouds. These products eliminate the need for an enterprise to manage physical infrastructure. But, sometimes, there are tradeoffs.</p> <p>For instance, with AWS Outposts, the servers must be acquired directly from AWS. On other hybrid cloud platforms, however, a company typically purchases and manages its own hardware.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/weighing_hybrid_cloud_connectivity_factors-f.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/weighing_hybrid_cloud_connectivity_factors-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/weighing_hybrid_cloud_connectivity_factors-f_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/weighing_hybrid_cloud_connectivity_factors-f.png 1280w" alt="Six connectivity parameters when building and managing hybrid cloud architectures" height="426" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>Six connectivity parameters when building and managing hybrid cloud architectures. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> </section> <section class="section main-article-chapter" data-menu-title="Top hybrid cloud management tools"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Top hybrid cloud management tools</h2> <p>Hybrid cloud management tools represent a complex ecosystem that has evolved significantly in recent years through acquisitions and new product launches. The evolution is likely to continue, making it important to keep up to date with the hybrid cloud tooling landscape.</p> <p>At present, key vendors and offerings include the following:</p> <ul type="disc" class="default-list"> <li><b>Amazon (CloudFormation, Amazon CloudWatch and AWS CloudTrail).</b> These cloud services integrate with Amazon's hybrid cloud frameworks -- particularly Outposts and EKS Anywhere -- to provide visibility and monitoring capabilities. Turnkey integration among AWS services makes them especially easy to deploy.</li> <li><b>Broadcom (VMware Tanzu CloudHealth and Tanzu Observability).</b> Originally built to help administer VMware-centric private and hybrid cloud environments, these offerings are now part of the Broadcom portfolio and support virtually all types of hybrid environments, not just those built using VMware and Broadcom technology.</li> <li><b>CloudBolt Software.</b> Offers a suite of products for hybrid cloud monitoring, reporting and compliance management, with particularly strong capabilities in automated governance policy enforcement.</li> <li><b>CloudSphere (Illuminate360).</b> A holistic IT monitoring and visibility offering that can deliver visibility into hybrid cloud environments as well as on-premises, private clouds and public clouds.</li> <li><b>Flexera (Snow Commander).</b> Built up through a series of acquisitions, Snow Commander aims to provide a highly automated approach to hybrid cloud management and monitoring. User self-service capabilities further reduce the administrative burden placed on IT staff.</li> <li><b>Google Cloud (Google Cloud Operations).</b> A visibility tool complete with monitoring, logging, debugging and tracing capabilities that integrates easily with hybrid clouds built on top of Google Cloud using Anthos.</li> <li><b>HPE (HPE Morpheus).</b> Creates a centralized control plane for monitoring and tracking hybrid cloud environments built using virtually any underlying platform, such as AWS, Azure, Google Cloud, VMware, Kubernetes and others. It is notable for strong vendor agnosticism.&nbsp;</li> <li><b>IBM Cloud Pak for Multi Cloud Management.</b> A hybrid cloud management and monitoring service that integrates most tightly with Red Hat OpenShift -- a Kubernetes-based management platform owned by IBM. Although the product is tightly coupled with IBM's native cloud offerings, it can support third-party environments so long as they also run a version of OpenShift.</li> <li><b>Micro Focus Hybrid Cloud Management X (HCMX).</b> Provides a highly centralized approach to managing and monitoring workloads across virtually any hybrid or multi-cloud environment, with a strong focus on compliance and cost management.</li> <li><b>Microsoft (Microsoft Azure Automation and Azure Monitor).</b> These services integrate seamlessly with hybrid clouds constructed using Azure Arc or Hub solutions.</li> <li><b>Scalr.</b> Aims to centralize hybrid cloud and multi-cloud management by using infrastructure as code to automate workload deployment, provisioning and governance. It offers a few native monitoring and observability capabilities but can integrate with third-party tools to fill this gap.</li> </ul> <p>The tools should work with all parts of the IT infrastructure and cover all related management needs -- something that native management tools built into hybrid cloud frameworks sometimes can't do.</p> </section> <section class="section main-article-chapter" data-menu-title="Evaluation criteria for hybrid cloud management tools"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Evaluation criteria for hybrid cloud management tools</h2> <p>Given the wide selection of <a target="_blank" href="https://www.gartner.com/reviews/market/cloud-management-tooling" rel="noopener">hybrid cloud management tools available</a> and the varying use cases they support, organizations should weigh a range of factors when considering options. These are some key areas of evaluation:</p> <ul type="disc" class="default-list"> <li><b>Platform support.</b> Not all hybrid cloud management tools work with all types of cloud platforms. For instance, some logging and monitoring tools might work with the public cloud platform on which the hybrid cloud is partly based. But they might not work well -- or at all -- with the abstraction layer, such as Kubernetes or Cloud Foundation, that runs on top of it.</li> <li><b>Tool integrations.</b> Consider how well the tools integrate with other offerings. For instance, if a hybrid cloud management tool automates log and metric collection, does it integrate well with analytics tools to help interpret them?</li> <li><b>Centralized visibility and operations.</b> Some management platforms are stronger than others regarding their ability to support all aspects of hybrid cloud administration, asset tracking, workload deployment and so on via a single, centralized vantage point.</li> <li><b>Prescriptive and predictive capabilities.</b> In addition to providing visibility into hybrid cloud environments, some tools offer features to predict how workloads will evolve over time and provide recommendations to support goals such as cost optimization.</li> <li><b>Security monitoring.</b> While performance and availability monitoring are the main focus of most hybrid cloud management tools, some also offer security monitoring and threat detection capabilities.</li> </ul> <p><i>Chris Tozzi, senior editor of content and a DevOps analyst at Fixate IO, has worked as a journalist and Linux systems administrator with particular interest in open source Agile infrastructure and networking.</i></p> <p><b><i>Editor's note:</i></b><i>&nbsp;This article originally published in 2023 and was updated in 2026 to include more hybrid cloud management tools.</i></p> </section> The techniques used to build hybrid cloud architectures have come a long way, but managing these environments long term is plenty more complex without the right software. https://cdn.ttgtmedia.com/rms/onlineimages/cloud_g1183958722.jpg https://www.techtarget.com/searchcloudcomputing/feature/Top-enterprise-hybrid-cloud-management-tools-to-review Mon, 02 Mar 2026 15:15:00 GMT <p>5G's high-performance, low-latency wireless connectivity is steadily integrating with and being intelligently managed by SD-WAN architectures. The result is flexible, high-capacity, and application-aware WANs for distributed enterprises, despite challenges in availability and initial cost.</p> <p>5G is profoundly shaping WAN services by offering wireless connectivity with performance characteristics -- including high speed, ultra-low latency and massive connection density -- that rival or surpass traditional wired connections like broadband and MPLS. This enables a fundamental shift in how organizations build and operate their WANs, primarily by accelerating the adoption of wireless WAN and integrating tightly with software-defined WAN (SD-WAN) architectures.</p> <p>Organizations now use 5G as a reliable primary or secondary WAN link for fixed locations, providing rapid deployment -- for temporary or pop-up sites, for example -- and resilience. Meanwhile, 5G's low latency and high capacity unlock new enterprise use cases at the edge, such as advanced IoT, real-time <a href="https://www.techtarget.com/searchdatacenter/definition/edge-computing">edge computing</a> and high-quality mobile workforce connectivity. Features like <a href="https://www.techtarget.com/whatis/definition/network-slicing">network slicing</a> promise tailored performance and security for diverse applications.</p> <p>The market for integrated 5G and SD-WAN isn't tracked as a single metric, but its growth is undoubtedly a major accelerator of the SD-WAN market, which was estimated to be worth $7.1 billion in 2025, according to Future Market Insights.</p> <p>The market direction is one of strong and rapid expansion, with the overall SD-WAN sector projected to grow at a compound annual growth rate exceeding 31% in the next decade. This significant growth is directly driven by using 5G for both primary and diverse backup connectivity that enables high-performance, flexible and rapidly deployed branch and edge networks.</p> <section class="section main-article-chapter" data-menu-title="Power couple: The potential role of SD-WAN in enterprise 5G"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Power couple: The potential role of SD-WAN in enterprise 5G</h2> <p>The role of SD-WAN in 5G networks has significantly matured from a simple pairing to today's critical, integrated platform. The benefits have advanced from nice-to-have resilience to must-have performance for distributed enterprises.</p> <p>The core function remains SD-WAN's intelligent management of multiple links, but its capabilities have evolved to directly take advantage of 5G's advanced features in the following ways:</p> <ol class="default-list"> <li><b>Becoming a primary WAN fabric.</b> SD-WAN is now routinely used to orchestrate 5G as the primary, high-bandwidth connection for fixed branch offices, such as retail, quick-service restaurants and remote sites, often replacing costly MPLS or serving as a superior alternative to basic broadband. It's all powered by the wire-like performance of midband (C-band) 5G and SD-WAN's ability to ensure zero-touch provisioning over cellular for fast, scalable deployment.</li> <li><b>Convergence to SASE.</b> The 5G SD-WAN combination is now largely framed within the secure access service edge (<a href="https://www.techtarget.com/searchnetworking/definition/Secure-Access-Service-Edge-SASE">SASE</a>) architecture, which unifies and simplifies network and security management in a SaaS platform. The SD-WAN function manages the high-performance 5G transport, while integrated security services, such as zero-trust network access (<a href="https://www.techtarget.com/searchnetworking/tip/The-basics-of-zero-trust-network-access-explained">ZTNA</a>), secure the traffic, which is essential for the hybrid workforce and massive numbers of IoT devices connecting over 5G.</li> <li><b>Application-specific slicing.</b> The growing ability of "5G-aware" SD-WAN to integrate with 5G standalone (<a href="https://www.techtarget.com/searchnetworking/definition/5G-standalone-5G-SA">5G SA</a>) network slicing is a major evolution. It enables the SD-WAN controller to classify traffic, such as real-time industrial automation data or remote surgery telemetry, and dynamically steer it onto a dedicated 5G slice that assures specific, mission-critical quality of service (QoS) for ultra-low latency or high reliability.</li> <li><b>Enabling edge computing.</b> The low latency of 5G combined with SD-WAN can help accelerate edge computing implementations. SD-WAN directs traffic to the nearest edge computing location for processing, further reducing the round-trip time for applications such as connected vehicles, real-time analytics for oil and gas fields, and AI-driven factory operations.</li> </ol> <figure class="main-article-image half-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/networking-brave_new_world_5G.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/networking-brave_new_world_5G_half_column_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/networking-brave_new_world_5G_half_column_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/networking-brave_new_world_5G.png 1280w" alt="5G and SD-WAN benefits" height="375" width="279"> <figcaption> <i class="icon pictures" data-icon="z"></i>Together, 5G and SD-WAN can bring reliable connectivity to branch offices and remote employees. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> </section> <section class="section main-article-chapter" data-menu-title="5G and SD-WAN synergy: Benefits of using them together"> <h2 class="section-title"><i class="icon" data-icon="1"></i>5G and SD-WAN synergy: Benefits of using them together</h2> <p>SD-WAN is rapidly becoming the standard technology for organizations seeking to intelligently manage and steer traffic across multiple WAN links. It can enhance the security, reliability and performance of internet connections, enabling organizations to increase their WAN bandwidth capacity while keeping costs reasonable.</p> <p>SD-WAN functionality continues to evolve, extending its capabilities beyond the WAN to areas including LAN and Wi-Fi. Furthermore, native security features are advancing to reduce the attack surface alongside continuous improvement in traffic management. As telecom providers introduce comprehensive software-defined branch services, they can offer organizations end-to-end traffic visibility that spans from the user device and LAN all the way through the WAN to the cloud environment.</p> <p>In addition, high-speed 5G connections provide IT organizations with another flexible WAN option to integrate into their SD-WAN architecture. 5G is valued for being simple and quick to provision, offering crucial link diversity that helps protect against physical cable disruptions, such as outages caused by cable cuts. 5G presents a cableless alternative to traditional transports, such as MPLS, DSL and broadband cable, that is often easier to purchase, deploy and manage.</p> <p>A core advantage of SD-WAN is its capacity for simple, unified management of different network links for purposes such as redundancy, load balancing and traffic segmentation. Beyond its role as a primary WAN transport, 5G can also serve as an out-of-band management capability, ensuring access to network resources via external means.</p> <p>The integration of 5G and SD-WAN provides a suite of advantages for modern networking, beginning with easy link provisioning and reasonable cost. This combination offers crucial connectivity diversity for both branch offices and work-from-home locations while delivering enhanced link redundancy and QoS. Organizations can employ active-active connections with performance characteristics -- specifically bandwidth and latency -- that are comparable to those of traditional MPLS. Furthermore, the combined architecture can enable better application performance through network slicing, alongside improved security, visibility and traffic management. Finally, it offers integral support for edge computing environments and more functionality for remote sites.</p> <div class="youtube-iframe-container"> <iframe id="ytplayer-0" src="https://www.youtube.com/embed/QZCmsHdMwdg?autoplay=0&amp;modestbranding=1&amp;rel=0&amp;widget_referrer=null&amp;enablejsapi=1&amp;origin=https://www.techtarget.com" type="text/html" height="360" width="640" frameborder="0"></iframe> </div> </section> <section class="section main-article-chapter" data-menu-title="Downsides of 5G and SD-WAN"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Downsides of 5G and SD-WAN</h2> <p>The primary obstacles for organizations wanting to use 5G wireless technology for SD-WAN connectivity are availability and cost. Carrier deployment schedules remain a significant concern, as many organizations might find that 5G rollout timelines don't align with their needs. The lack of consistent availability forces some businesses to hold off on adoption or explore other options while waiting for carriers to expand into their required areas of operation. However, the broadening availability of 5G SA is driving improvement in this area.</p> <p>Even where 5G is available, performance can be a letdown. Customers are sometimes disappointed with signal strength because 5G signals often struggle to penetrate building obstructions, such as concrete walls. To overcome this, businesses might need to invest in a retrofit, adding external antennas to their networking closets, which can introduce an unexpected build-out expense.</p> <p>The initial cost of 5G can reduce the anticipated savings. Like any new technology, high starting prices help operators offset their large capital and operational expenditures. As a result, organizations that adopt 5G early, with the goal of reducing WAN costs, might be disappointed. Many organizations are choosing to wait until increased competition among carriers drives down the cost of enterprise-grade, fixed 5G connectivity.</p> <p>Another challenge is the lack of vendor consistency, as not all SD-WAN providers sell a fully unified offering that integrates 5G connectivity, which forces organizations to piece together disparate hardware and management tools. Such complexity makes deployment and long-term network management more difficult compared with using a single, cohesive SD-WAN platform.</p> </section> <section class="section main-article-chapter" data-menu-title="5G and SD-WAN key use cases"> <h2 class="section-title"><i class="icon" data-icon="1"></i>5G and SD-WAN key use cases</h2> <p>Mature use cases fall into the following three categories:</p> <ol type="1" start="1" class="default-list"> <li><b>Manufacturing and automation.</b> 5G's reliable, low-latency connections are used for factory automation, with SD-WAN steering critical operational technology traffic into a guaranteed network slice to ensure real-time control and monitoring.</li> <li><b>Hybrid and remote work.</b> The 5G SD-WAN combination is a mature networking option for high-performance, secure home offices. SD-WAN devices in homes and remote locations use 5G as an always-on, high-speed connection, ensuring business-critical applications such as VoIP and video conferencing are prioritized, secured via ZTNA and dynamically routed for the best performance.</li> <li><b>Fleet mobility.</b> Ruggedized SD-WAN appliances with multi-SIM 5G connectivity are becoming the standard for logistics, emergency services and connected farms, providing reliable, high-bandwidth connections on the move, with dynamic carrier switching for uninterrupted service.</li> </ol> </section> <section class="section main-article-chapter" data-menu-title="Recommendations for IT leaders"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Recommendations for IT leaders</h2> <p>As 5G services become more widespread and as carriers broaden their unlimited data plans, the role of cellular wireless in SD-WAN will shift in a positive direction. While most organizations currently use wireless only as a backup circuit during outages of primary wired connections or drops in performance, 5G is poised to become a strong, primary alternative for SD-WAN connectivity.</p> <p>IT leaders should take note of the successful integration of 4G and 5G already demonstrated by SD-WAN vendors. They should consider 5G for pop-up or temporary locations and, as unlimited data plans materialize, include it as a serious option in their connectivity packages alongside traditional links such as MPLS and internet broadband.</p> </section> <section class="section main-article-chapter" data-menu-title="What's next for 5G and SD-WAN?"> <h2 class="section-title"><i class="icon" data-icon="1"></i>What's next for 5G and SD-WAN?</h2> <p>As 5G technology expands and becomes increasingly available and reliable, it offers new possibilities for SD-WAN branch connectivity. Businesses are actively exploring how to take advantage of 5G's high speeds and low latency, particularly for real-time and latency-sensitive applications such as voice and video unified communications. Over time, remote offices can adopt 5G services as their primary connectivity link, reserving a traditional wired medium for backup or to offload data that isn't sensitive to latency.</p> <p>Moreover, the 5G SD-WAN combination is expected to see far greater use in temporary and mobile scenarios. The combination provides the reliable connectivity needed for applications like freight asset tracking and setting up networks quickly for special events.</p> <p>Over the next 12 months, organizations can improve their implementation of 5G with SD-WAN by following a secure, managed hybrid strategy and by integrating 5G as a high-speed link alongside wired connections while consolidating security into a single platform, such as SASE. They must actively optimize traffic steering policies to use 5G's low latency for applications like real-time voice and video, ensuring the SD-WAN fabric dynamically manages performance based on application needs rather than link type.</p> <p>Finally, IT decision-makers should pilot 5G in specific use cases, such as pop-up sites or remote assets, to measure its true signal reliability and cost-effectiveness before committing to a wide-scale rollout to minimize unforeseen installation and performance issues.</p> <p><i>Ron Westfall is vice president and practice leader for infrastructure and networking at HyperFRAME Research, where he covers topics such as hybrid cloud, AI, security, edge computing, wired and wireless networking, 5G and IoT.</i></p> </section> 5G's performance advantages and improved integration with SD-WAN make the combination an increasingly powerful and affordable networking option for distributed enterprises. https://cdn.ttgtmedia.com/rms/onlineimages/container_g1294273513.jpg https://www.techtarget.com/searchnetworking/tip/5G-and-SD-WAN-pair-is-a-game-changer-for-branch-connectivity Tue, 20 Jan 2026 09:00:00 GMT <section class="section main-article-chapter" data-menu-title="What is a phase-locked loop (PLL)?"> <h2 class="section-title"><i class="icon" data-icon="1"></i>What is a phase-locked loop (PLL)?</h2> <p>A phase-locked loop (PLL) is an electronic circuit with a voltage or voltage-driven oscillator that constantly adjusts to match the frequency of an input signal. PLLs are used to generate, stabilize, <a href="https://www.techtarget.com/searchnetworking/definition/modulation">modulate</a>, demodulate, filter or recover a signal from a "noisy" communications channel where data has been interrupted.</p> <p>PLLs are widely used in <a href="https://www.techtarget.com/searchmobilecomputing/definition/wireless-router">wireless</a> or radio frequency (<a href="https://www.techtarget.com/searchnetworking/definition/radio-frequency">RF</a>) applications, including Wi-Fi routers, broadcast radios, walkie-talkie radios, televisions and mobile phones.</p> <p>At its simplest, a phase-locked loop is a closed-loop feedback control circuit that's both frequency- and phase-sensitive. A PLL is not a single component, but a system that consists of both analog and digital components -- interconnected in a "<a href="https://www.techtarget.com/searchitchannel/definition/feedback-loop">negative feedback</a>" configuration. Consider it analogous to an elaborate operational amp (op amp)-based <a href="https://www.techtarget.com/whatis/definition/amplifier">amplifier</a> circuit.</p> </section> <section class="section main-article-chapter" data-menu-title="What is a phase-locked loop used for?"> <h2 class="section-title"><i class="icon" data-icon="1"></i>What is a phase-locked loop used for?</h2> <p>The main goal of a PLL is to synchronize the output <a href="https://www.techtarget.com/whatis/definition/oscillator">oscillator</a> Signal with a reference signal. Even if the two signals have the same frequency, their peaks and troughs may not occur in the same place. Simply put, they do not reach the same point on the waveform at the same time.</p> <p>Known as the <a href="https://www.techtarget.com/whatis/definition/phase">phase</a> difference<em>, </em>this is measured as the angle between the signals. For signals with varying frequencies, the phase difference between them will always vary, which means that one signal will lag or lead the other by a varying amount.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/networking-phase_difference_illustrated-f.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/networking-phase_difference_illustrated-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/networking-phase_difference_illustrated-f_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/networking-phase_difference_illustrated-f.png 1280w" alt="Phase difference illustrated" height="510" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>During a phase difference, the leading phase refers to a wave occurring 'ahead' of a different wave of the same frequency, while the lagging phase indicates waves occurring 'behind' another of the same frequency. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <p>A PLL reduces phase errors between output and input frequencies. When the phase difference between these signals is zero, the system is said to be "locked." And this locking action depends on the PLL's ability to provide negative feedback -- i.e., route the output signal back to the phase detector.</p> <p>In addition to synchronizing the output and input frequencies, a PLL also helps establish the input-output phase relationship to generate the appropriate control voltage. Therefore, it helps achieve <em>both</em> frequency and phase lock in a circuit.</p> </section> <section class="section main-article-chapter" data-menu-title="Key components of a phase-locked loop"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Key components of a phase-locked loop</h2> <p>A PLL consists of three key components:</p> <ul class="default-list"> <li><strong>Phase detector</strong> (also known as a phase comparator or mixer). It compares the phases of two signals, and generates a voltage according to the phase difference. It multiplies the reference input and the voltage-controlled oscillator output.</li> <li><strong>Voltage-controlled oscillator</strong>. Generates a sinusoidal signal, whose frequency closely matches the center frequency provided by the low-pass filter.</li> <li><strong>Low-pass filter</strong>. A kind of <a href="https://www.sciencedirect.com/topics/engineering/loop-filter" target="_blank" rel="noopener">loop filter</a> that attenuates the high-frequency alternating current (AC) component of the input signal to smoothen and flatten the signal to make it more DC-like.</li> </ul> <p>Here, the phase detector functions as an <em>analog </em><a href="https://resources.pcb.cadence.com/blog/2019-analog-multipliers-and-rf-modulators-introduction-and-applications" target="_blank" rel="noopener"><em>multiplier</em></a>, the voltage-controlled oscillator as a <a href="https://www.analog.com/en/products/amplifiers/rf-amplifiers/gain-blocks.html" target="_blank" rel="noopener"><em>gain</em></a><em> block,</em> and the low-pass filter as a <a href="https://www.mathworks.com/help/physmod/sps/powersys/ref/leadlagfilter.html" target="_blank" rel="noopener"><em>lag</em></a><em> block</em>.</p> <p>Together, the phase-locked loop, voltage-controlled oscillator, <a href="https://www.apitech.com/products/ima-subsystems/oscillator-ima/master-reference-oscillators-mro/" target="_blank" rel="noopener">reference</a> oscillator and <a href="https://www.eeeguide.com/phase-comparator-circuit/" target="_blank" rel="noopener">phase comparator</a> comprise a <em>frequency synthesizer</em> -- an electronic system that produces a range of frequencies from a single fixed oscillator. Wireless equipment that use this type of frequency control are said to be frequency-synthesized.</p> <p>Other frequency-synthesized devices include:</p> <ul class="default-list"> <li>mobile phones</li> <li>satellite receivers</li> <li><a href="https://www.techtarget.com/searchmobilecomputing/definition/Global-Positioning-System">GPS</a> systems</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="How a phase-locked loop works"> <h2 class="section-title"><i class="icon" data-icon="1"></i>How a phase-locked loop works</h2> <p>The underlying mechanism of a PLL operates based on the phase difference between two signals. It detects this difference, and provides a feedback mechanism to modify the voltage-controlled oscillator frequency.</p> <p>The PLL compares the voltage-controlled oscillator signal with the input/reference signal. Because the PLL is both frequency- and phase-sensitive, it can detect both frequency and phase differences between the two signals.</p> <p>It generates an error signal that corresponds to the phase difference between the signals. This difference is passed on to the low-pass filter that removes any high-frequency elements, and filters the error signal into a varying direct current (<a href="https://www.techtarget.com/whatis/definition/DC-direct-current">DC</a>) level. This "feedback signal" is then applied back to the voltage-controlled oscillator to control its frequency.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/networking-phase_locked_loop_at_its_most_basic-f.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/networking-phase_locked_loop_at_its_most_basic-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/networking-phase_locked_loop_at_its_most_basic-f_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/networking-phase_locked_loop_at_its_most_basic-f.png 1280w" alt="Diagram of a phase-locked loop" height="215" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>A simplified look at how a phase-locked loop works constantly to adjust voltage to match input signal frequency. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <p>To start, this loop will be out of lock. The error signal will pull the voltage-controlled oscillator frequency toward the reference frequency, and continue to do so until it cannot reduce the error any further. At one point, however, the phase difference between the two signals will become zero (i.e., they will both be on exactly the same frequency).</p> <p>This is when the loop is said to be locked, and a steady-state error voltage is produced.</p> </section> <section class="section main-article-chapter" data-menu-title="Common phase-locked loop applications"> <h2 class="section-title"><i class="icon" data-icon="1"></i><span>Common phase-locked loop applications</span></h2> <p>PLLs are used in dozens of applications; among them are:</p> <ul class="default-list"> <li>telecommunications systems</li> <li>computers</li> <li>radio</li> <li>other electronic systems</li> </ul> <p>Phase-locked loops are frequently used in <a href="https://www.techtarget.com/searchmobilecomputing/definition/wireless">wireless</a> communication, primarily for Frequency Modulation (<a href="https://www.techtarget.com/searchnetworking/definition/modulation">FM</a>) transmissions, where they enable high-quality audio to be demodulated from an FM signal. They are also employed for Phase Modulation (PM) transmissions.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/networking-apf_modulation-f.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/networking-apf_modulation-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/networking-apf_modulation-f_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/networking-apf_modulation-f.png 1280w" alt="Three kinds of wave modulation: phase, frequency and amplitude" height="510" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>The three types of wave modulation, which is the conversion of data into radio waves by adding information to a signal. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <p>Indirect frequency synthesizers are another important application of PLL. Two other key PLL applications are:</p> <ul class="default-list"> <li><strong>Timing distribution.</strong> To distribute precisely timed clock pulses in digital logic circuits (e.g., in microprocessor systems).</li> <li><strong>Signal recovery.</strong> To provide a "clean" signal and remember the frequency in case of interruptions (e.g., when using pulsed transmissions).</li> </ul> <p><a href="https://www.techtarget.com/whatis/definition/digital">Digital</a> data transmissions uses phase-locked loops more commonly than analog transmissions. They are also more commonly manufactured as integrated circuits, although discrete <a href="https://www.techtarget.com/whatis/definition/circuit">circuits</a> are used for <a href="https://www.techtarget.com/searchnetworking/definition/microwave">microwave</a> signal processing.</p> </section> A phase-locked loop (PLL) is an electronic circuit with a voltage or voltage-driven oscillator that constantly adjusts to match the frequency of an input signal. https://cdn.ttgtmedia.com/visuals/digdeeper/3.jpg https://www.techtarget.com/searchnetworking/definition/phase-locked-loop Fri, 21 Nov 2025 13:19:00 GMT <p>Business process outsourcing (BPO) is a business practice in which an organization contracts with an external service provider to perform an essential business function or task. Organizations in many sectors have adopted the BPO model, including manufacturing, healthcare, energy, pharmaceuticals and e-commerce with the goal of reducing costs and increasing business efficiency, productivity, and profitability.</p> <p>An organization typically outsources with another business to handle select <a href="https://www.techtarget.com/searchcio/definition/business-process">processes</a> that, although necessary for its operations, are not part of its core <a href="https://www.techtarget.com/searchcio/definition/value-proposition-VP">value proposition</a>. At the same time, some companies outsource core or critical tasks if outsourcing is expected to provide efficiency or cost benefits that may not be available if the tasks are retained in-house.</p> <p>To maximize the benefits of BPO, it's crucial to identify these processes before kickstarting the outsourcing engagement. This step requires a good understanding of the processes within the organization and strong <a href="https://www.techtarget.com/searchcio/definition/business-process-management">business process management</a>.</p> <p>Many organizations consider processes that are performed the same or similarly from company to company, such as payroll and accounting, as good candidates for BPO.</p> <p>BPO typically offers flexibility and cost efficiency to organizations that implement it. Companies calculate that outsourcing these processes to a provider that specializes in them could deliver better results.</p> <p>BPO has its roots in the manufacturing industry. Manufacturers hired third-party vendors to handle parts of their <a href="https://www.techtarget.com/whatis/definition/supply-chain">supply chains</a> after determining that the vendors could bring more skills, speed and cost efficiencies to those processes than an in-house team could deliver. Over time, organizations in other industries adopted the practice.</p> <p>Today, the use of BPO has expanded with for-profit businesses, nonprofits and even government agencies outsourcing a range of tasks to service providers located in the U.S., throughout North America and across the world.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/commonly_outsourced_business_processes-f.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/commonly_outsourced_business_processes-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/commonly_outsourced_business_processes-f_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/commonly_outsourced_business_processes-f.png 1280w" alt="Diagram highlighting commonly outsourced business processes." height="281" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>Organizations often outsource an entire function to a single vendor, whereas other companies outsource only specific processes within a functional area. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <p>To truly understand the main ideas and benefits of BPO, it's important to differentiate between BPO vs. <a href="https://www.techtarget.com/searchcio/definition/Shared-services">shared services</a>.</p> <p>Shared services refer to the practice of consolidating several back-office business functions, such as HR, IT and finance, into a dedicated business unit. The single unit delivers all these services to the organization, acting as a vendor. The <a href="https://www.techtarget.com/searcherp/tip/Building-a-shared-services-organization-structure">goal of shared services</a> is to leverage economies of scale in order to standardize processes, reduce costs and empower the individual units to focus on their core tasks.</p> <p>Business process outsourcing refers to outsourcing certain business processes to an <a href="https://www.techtarget.com/searchsecurity/tip/How-to-build-an-effective-third-party-risk-assessment-framework">external, third-party service provider</a>. It offers similar benefits as shared services. However, these benefits are larger. For instance, the client organization can save more by investing in BPO compared to shared services. This is because BPO eliminates the need to hire and train specialist personnel (if they're not already available). Also, organizations can access cutting-edge technologies at a lower cost with BPO to optimize their processes and boost business efficiency.</p> <section class="section main-article-chapter" data-menu-title="What is business process outsourcing used for?"> <h2 class="section-title"><i class="icon" data-icon="1"></i>What is business process outsourcing used for?</h2> <p>Organizations engage in business process outsourcing for two main areas of work: back- and front-office functions.</p> <p>Back-office outsourcing refers to <i>internal business functions</i>, such as accounting, IT services, HR, <a href="https://www.techtarget.com/searchsoftwarequality/definition/quality-assurance">quality assurance</a> and payment processing.</p> <p>Front-office functions are processes and business operations that serve or relate to existing and potential customers, such as customer relation services, <a href="https://www.techtarget.com/searchcustomerexperience/tip/Ways-to-successfully-align-your-sales-and-marketing-teams">marketing and sales</a>.</p> <p>Some organizations outsource an entire function, such as the HR department, to a single vendor. Other companies outsource only specific processes within a functional area, such as payroll processing, while having their own team perform all other HR processes.</p> <p>Commonly outsourced processes include the following:</p> <ul class="default-list"> <li>Payroll and accounting.</li> <li>Administration.</li> <li>Customer support.</li> <li>IT management and services.</li> <li>Manufacturing.</li> <li>Marketing.</li> <li>Research.</li> <li>Sales.</li> <li>Shipping and logistics.</li> </ul> <p>Some companies also outsource strategic tasks, such as <a href="https://www.techtarget.com/searchbusinessanalytics/definition/data-mining">data mining</a> and <a href="https://www.techtarget.com/searchdatamanagement/definition/data-analytics">data analytics</a>, both of which have become essential elements for maintaining a <a href="https://www.techtarget.com/searchcio/definition/competitive-advantage">competitive advantage</a> in a digital economy.</p> <div class="youtube-iframe-container"> <iframe id="ytplayer-0" src="https://www.youtube.com/embed/1nIQu6eICY0?si=BjVTIsO3rrii7DWj?autoplay=0&amp;modestbranding=1&amp;rel=0&amp;widget_referrer=null&amp;enablejsapi=1&amp;origin=https://www.techtarget.com" type="text/html" height="360" width="640" frameborder="0"></iframe> </div> </section> <section class="section main-article-chapter" data-menu-title="Why companies adopt business process outsourcing"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Why companies adopt business process outsourcing</h2> <p>Enterprise executives opt to outsource a business process for a variety of reasons. Those reasons vary based on the type, age and size of the organization, as well as market forces and economic conditions.</p> <p>Startup companies, for example, often need to outsource back-office and front-office functions as they do not have the <a href="https://www.techtarget.com/searchitoperations/tip/Close-the-tech-skills-gap-with-the-right-training">in-house resources</a> to perform them.</p> <p>An established company might opt to outsource a task that it had been performing after determining that a third-party service provider could do the job better or cheaper. Management experts advise enterprise executives to identify functions that can be outsourced and then determine if shifting that task to an outsourcing provider makes sense.</p> <p>If so, the organization must go through the process of not only identifying the best vendor for the work, but also shifting the work from in-house to the external provider. This requires a significant amount of <a href="https://www.techtarget.com/searchcio/definition/change-management">change management</a>, as the move to an outsourced provider generally affects staff, <a href="https://www.techtarget.com/searchcio/tip/How-to-improve-and-optimize-business-processes-step-by-step">established processes</a> and existing workflows.</p> <p>The shift to an outsourced provider also affects the organization's finances -- not only in terms of shifting costs from the internal function to the outsourced providers, but often in terms of corporate taxes and reporting requirements.</p> <p>The organization may also need to invest in new technology to enable the smooth flow of work to the outsourced provider. The extent and <a href="https://www.techtarget.com/whatis/feature/Ways-to-prevent-tech-buyers-remorse">cost of that technology</a> depend on the scope of the function being outsourced and the maturity of the technology infrastructure in place at both enterprises.</p> <p>Business process outsourcing typically starts with enterprise leaders identifying specific functions or business processes to outsource as a way to save money, gain flexibility, improve performance and redirect resources to core <a href="https://www.techtarget.com/searchapparchitecture/definition/business-capability">business capabilities</a>.</p> <p>Business leaders then consider whether one vendor should handle all the work being outsourced or whether contracting multiple providers for the various tasks delivers the best value. For example, a company could decide to outsource most of its HR functions and then either contract for a single provider to perform all the outsourced processes or hire one for payroll and another for <a href="https://www.techtarget.com/searchhrsoftware/definition/benefits-administration">benefits administration</a>.</p> <p>To help with this decision, it's advised to follow these steps:</p> <ul class="default-list"> <li>Do a self-assessment of the organization's needs.</li> <li>Assess service providers and their offerings.</li> <li>Compare the offerings of different vendors.</li> </ul> <p>Those considerations should lead to a list of requirements and a detailed scope of work for outsourcing. Organizations use those to shape a request for proposal (<a href="https://www.techtarget.com/searchitchannel/definition/request-for-proposal">RFP</a>) to share with vendors that determine whether they can meet the requirements, at what price and with what value-adds. Comparing the offers of various vendors against the requirements can aid in selecting the right vendor (or vendors) for the outsourcing engagement.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineImages/crm-request_for_x.jpg"> <img data-src="https://www.techtarget.com/rms/onlineImages/crm-request_for_x_mobile.jpg" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineImages/crm-request_for_x_mobile.jpg 960w,https://www.techtarget.com/rms/onlineImages/crm-request_for_x.jpg 1280w" alt="Info box outlining the types of documents used to procure products including RFP." height="252" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>An RFP is one of several documents a customer can use to procure products and services. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <p>Once an organization has selected the provider or providers it wants to hire, it must determine the type of contract. Such contracts generally fall into one of the following categories:</p> <ol class="default-list"> <li><b>Time and materials contracts</b><b>.</b> The business pays the provider for the time worked and the materials used.</li> <li><b>Fixed-price contracts</b><b>.</b> Parties set an upfront price for the specified work.</li> </ol> <p>Additionally, organizations must, with their vendors, draft the service-level agreement (<a href="https://www.techtarget.com/searchitchannel/definition/service-level-agreement">SLA</a>) detailing the quality of the provided services and the <a href="https://www.techtarget.com/searchcustomerexperience/definition/business-metric">metrics</a> for evaluating vendor performance for determining a successful engagement.</p> <p>Depending on the needs and nature of the outsourced work, some organizations also negotiate with providers on whether to have the following:</p> <ul class="default-list"> <li>Specific workers on teams dedicated to their outsourced work.</li> <li>Workers located only onshore or, conversely, globally distributed.</li> <li>Workers available 24/7 or only during set hours.</li> </ul> <p>When both parties agree to its terms, the SLA is finalized. The client company then moves the <a href="https://www.techtarget.com/searchdatacenter/definition/workload">workloads</a> for the outsourced process to the vendor in a systematic and planned manner. The BPO strategy for enterprises should also clarify how the organization and vendor will communicate during the transition. Ideally, both parties should communicate frequently to minimize hiccups and ensure a smooth work handover.</p> <p>Once the transition is complete, the vendor starts managing the outsourced processes. The best vendors use the latest technologies and assign skilled personnel to work on the client's tasks. On transferring processes and roles to the vendor, the client organization's in-house resources can be freed up and reassigned to other processes as needed. The firm can regularly <a href="https://www.techtarget.com/searchcio/tip/Why-SLA-compliance-should-be-top-of-mind-for-IT-leaders">evaluate the vendor's performance</a> against the SLA and other terms outlined in the contract. These evaluations enable organizations to decide whether to renew or terminate the contract. Organizations might also choose to amend the contract (with the vendor's agreement).</p> <p>To increase BPO value, it can be useful to set up an outsourcing governance <a href="https://www.techtarget.com/whatis/definition/framework">framework</a>. This framework should include the practices and processes the organization will use to manage its vendor relationships, minimize risk and maximize the value of the partnership.</p> <p>In summary, here's how business process outsourcing works:</p> <ul class="default-list"> <li><b>Identify outsourcing candidates. </b>Identify<b> </b>the specific functions or business processes that can be outsourced to reduce costs or improve organizational performance.</li> <li><b>Decide on outsourcing scope.</b> Consider whether to outsource to one vendor or multiple vendors, depending on the organization's needs and vendor offerings.</li> <li><b>Request vendors for proposals.</b> Create and send out an RFP to vendors to help with vendor selection.</li> <li><b>Determine the contract type.</b> After selecting the vendor, decide whether the contract will be a time and materials contract or a fixed-price contract.</li> <li><b>Draft and finalize the SLA. </b>Clearly state the organization's expectations and the metrics that will be used to gauge vendor performance.</li> <li><b>Move workloads to the vendor. </b>Plan for the transition and communicate frequently with the vendor to minimize transition hiccups and avoid business disruptions.</li> <li><b>Evaluate vendor performance.</b> Assess the vendor's performance against the SLA on a quarterly or half-yearly basis, and decide whether to renew, modify, or terminate the outsourcing contract.</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="What are the benefits of business process outsourcing (BPO)?"> <h2 class="section-title"><i class="icon" data-icon="1"></i>What are the benefits of business process outsourcing (BPO)?</h2> <p>Benefits of BPO typically cited by proponents include the following:</p> <ul class="default-list"> <li><b>Financial benefits.</b> BPO providers can often perform a business process at lower costs or save the company money in other ways, such as in tax savings.</li> <li><b>Improved flexibility.</b> BPO contracts can offer the ability to modify how an outsourced business process is done, enabling companies to react more nimbly to changing market dynamics.</li> <li><b>Increased competitive advantage.</b> BPO enables an organization to focus more of its resources on operations that distinguish it in the marketplace.</li> <li><b>Higher quality and better performance.</b> Because business processes are their core business, BPO providers are well positioned to complete the work with greater accuracy, efficiency and speed.</li> <li><b>Access to innovations in the business process.</b> BPO providers are more likely to know about advances in the process areas they specialize in. That means they are more likely to invest in new technologies, such as <a href="https://www.techtarget.com/searchitoperations/definition/IT-automation">automation</a>, that can improve the speed, cost and quality of the work.</li> <li><b>Expanded coverage.</b> Organizations that need 24/7 <a href="https://www.techtarget.com/searchcustomerexperience/definition/Call-Center">call center</a> operations can often quickly gain that capability by contracting with a BPO company with around-the-clock capabilities and multiple geographic locations, enabling a <a href="https://www.techtarget.com/searchcio/tip/BPO-vs-BPM-What-is-the-difference">follow-the-sun</a> business model.</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="What are the risks of business process outsourcing?"> <h2 class="section-title"><i class="icon" data-icon="1"></i>What are the risks of business process outsourcing?</h2> <p>BPO risks include the following:</p> <ul class="default-list"> <li><b>Security breaches.</b> The technology connection between the hiring company and the BPO provider creates another point of entry for <a href="https://www.techtarget.com/whatis/definition/threat-actor">bad actors</a>, as organizations often need to share sensitive and regulated data with their service providers.</li> <li><b>Regulatory compliance requirements.</b> An organization's <a href="https://www.techtarget.com/searchcio/definition/regulatory-compliance">regulatory</a> requirements extend even to outsourced work, so it must ensure that the vendors it hires align with the laws the organization must follow. It must also ensure that the vendors adhere to the rules that govern the organization's outsourced work.</li> <li><b>Unanticipated or higher costs.</b> Organizations can underestimate the amount of work that needs to be done, which can lead to higher-than-anticipated costs.</li> <li><b>Relationship challenges.</b> Organizations can face communication problems with their outsourced providers, or they might find that there are <a href="https://www.techtarget.com/whatis/definition/corporate-culture">cultural barriers</a>.</li> <li><b>Overdependence on the external provider.</b> An organization that outsources a function or service is tethered to the partner that performs the work. The organization must manage that relationship to ensure key objectives are met at the agreed-upon cost. If not, the organization may find it difficult to bring the operation back in-house or even move the contract to another outsourced provider.</li> <li><b>Increased potential for disruption.</b> An organization must monitor for issues that could interrupt or permanently end the relationship with an outsourced provider. These include financial or workplace problems at the outsourced provider, geopolitical instability, natural disasters or changes in economic circumstances. Organizations must consider such risks and devise strategies on how to cope, which, in turn, adds complexity to their <a href="https://www.techtarget.com/searchdisasterrecovery/definition/Business-Continuity-and-Disaster-Recovery-BCDR">business continuity and disaster recovery</a>.</li> <li><b>Public backlash.</b> The public perception of an organization might negatively change if the public views that an organization is sacrificing domestic jobs for a better bottom line.</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="What are the different types of BPO?"> <h2 class="section-title"><i class="icon" data-icon="1"></i>What are the different types of BPO?</h2> <p>BPO is often divided into the following types based on the service provider's location:</p> <ol class="default-list"> <li><b>Offshore outsourcing.</b> It occurs when an organization contracts for services provided by a company in a foreign country. Often, the decision to adopt offshore outsourcing is driven by cost considerations. One example is a large retailer in the U.S. <a href="https://www.techtarget.com/whatis/feature/10-myths-about-outsourcing-contact-centers">outsourcing its call center</a> operations to India.</li> <li><b>Onshore outsourcing</b><b>.</b> Also known as <a href="https://www.techtarget.com/searchcio/definition/onshore-outsourcing">domestic outsourcing</a>, onshore outsourcing happens when an organization contracts for services provided by a company that operates in the same country as the hiring organization. Onshore outsourcing might not offer the same cost benefits as offshore outsourcing. However, there are many reasons organizations choose this outsourcing model:</li> </ol> <ul class="default-list"> <li style="list-style-type: none;"> <ul class="default-list"> <li>Cultural and time-zone alignment ease communication between the client's and vendor's personnel.</li> <li>Proximity between client and vendor teams enhances oversight and quality control, and accelerates problem-solving.</li> <li>Data remains within national borders, making it easier to protect from leaks and <a href="https://www.techtarget.com/searchsecurity/tip/How-to-prevent-a-data-breach-10-best-practices-and-tactics">breaches</a>.</li> <li>Vendors' knowledge of local laws and regulations eases the client's regulatory compliance burden.</li> </ul> </li> </ul> <ol start="3" class="default-list"> <li><b>Nearshore outsourcing. </b>When an organization contracts for services provided by companies based in neighboring countries, this is referred to as <a href="https://www.techtarget.com/searchcio/definition/nearshore-outsourcing">nearshore outsourcing</a>. This type of outsourcing also offers a cost benefit, although it might be muted compared to offshore outsourcing. Additionally, organizations that opt for this model can gain the advantages offered by onshore outsourcing, such as proximity to the vendor, time-zone alignment, cultural alignment (or at least similarities), and the ability to engage in real-time or near-real-time collaboration and problem-solving.</li> </ol> <p>Another way to categorize BPO is as either <i>horizontal BPO</i> or <i>vertical BPO. </i>This approach, suggested by <a target="_blank" href="https://www.gartner.com/en/information-technology/glossary/business-process-outsourcing-bpo" rel="noopener">Gartner</a>, differentiates BPO providers on the basis of their offerings: whether these offerings can be applied across industries or are industry-specific.</p> <p>Horizontal BPO offerings are functions that are used across multiple industries, i.e., they have cross-industry applications. Examples include customer support, HR, finance, accounting and facilities management.</p> <p>In contrast, <a href="https://www.techtarget.com/searchitchannel/definition/vertical-market">vertical-specific</a> offerings are industry-specific. To offer these services, the vendor must have specific knowledge about the industry. For example, a vendor that offers ATM outsourcing to banks must have deep knowledge about the banking sector, in addition to knowledge about installing, replenishing, security, compliance and general management of ATMs.</p> <p>Similarly, a service provider that specializes in healthcare outsourcing processes like medical billing or patient data management must have domain-specific skills to manage these processes. They must also understand the various constraints and regulations that healthcare organizations operate in. The vendor might also be required to implement controls to comply with healthcare regulations concerned with patient privacy and data security (e.g., the <a href="https://www.techtarget.com/searchhealthit/definition/HIPAA">Health Insurance Portability and Accountability Act</a>).</p> <p>Regardless of which BPO model they choose, organizations usually garner tangible benefits from it. In addition to cost savings and efficiency gains, outsourcing enables organizations to access skilled talent who can handle their workloads easily and consistently provide high-quality output.</p> </section> <section class="section main-article-chapter" data-menu-title="KPO, LPO and RPO"> <h2 class="section-title"><i class="icon" data-icon="1"></i>KPO, LPO and RPO</h2> <p>Business process outsourcing is sometimes categorized by the types of services being provided; the following three categories are commonly cited:</p> <ul class="default-list"> <li><b>Knowledge process outsourcing</b>. KPO is when the outsourced service provider is hired not only for its capacity to perform a <a href="https://www.techtarget.com/searchcio/tip/How-to-develop-a-business-process-in-8-steps">particular business process or function</a>, but also to provide expertise around it. KPO is ideal for receiving high-quality work that is quick and efficient.</li> <li><b>Legal process outsourcing. </b>LPO is a type of KPO that is specific to legal services; these range from drafting legal documents and performing legal research to offering advice.</li> <li><b>Research process outsourcing. </b>RPO -- another type of KPO -- refers to outsourcing research and analysis functions. Biotech companies, investment firms and marketing agencies are among the types of organizations that engage in RPO for services.</li> </ul> <p>RPO can also refer to <i><a href="https://www.techtarget.com/searchhrsoftware/definition/recruitment-process-outsourcing-RPO">recruitment process outsourcing</a></i>, which outsources an organization's recruitment process, including sourcing, screening, interviewing and finalizing offers.</p> </section> <section class="section main-article-chapter" data-menu-title="Business process outsourcing examples"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Business process outsourcing examples</h2> <p>One example of an organization using BPO might be if it's struggling to maintain its HR department, say, due to labor shortages or an inability to keep up with rising salaries of HR specialists. In the first situation, skilled HR workers may be needed to keep this business function going. In the second scenario, the priority might be to lower the cost of the HR function.</p> <p>In both scenarios, the organization can partner with a <a href="https://www.techtarget.com/searchhrsoftware/tip/6-top-considerations-for-outsourcing-in-HR">BPO provider that specializes in HR</a> and offers HR services, including the following:</p> <ul class="default-list"> <li>Payroll and benefits management.</li> <li>Payroll tax administration.</li> <li>Talent acquisition and onboarding.</li> <li>Employee time, attendance, and leave tracking.</li> <li>Data management.</li> <li>HR helpdesk.</li> <li>General HR administration.</li> <li>HR reporting.</li> <li>Compliance reporting.</li> <li>Terminations and exit interviews.</li> </ul> <p>When these tasks are outsourced, it frees up the company's HR team to focus on more strategic initiatives related to employee engagement, learning and development, and experience management.</p> <p>Another example is a business that hires a BPO provider for <a href="https://www.techtarget.com/searchcustomerexperience/definition/customer-service-and-support">customer support services</a>. A small business might not be able to dedicate the time or resources needed to set up and manage a contact center (particularly, a multichannel or omnichannel contact center). It can, instead, invest in a BPO provider that specializes in providing customer support services. The provider can handle tasks like order processing, customer support, appointment setting and helpdesk. Some providers offer multichannel support, which enables client organizations to elevate <a href="https://www.techtarget.com/searchcustomerexperience/definition/customer-engagement">customer engagement</a> while also reducing the costs of meeting their customers' demands.</p> <p>A third example of BPO is IT outsourcing. Many companies outsource parts of their IT operations to BPO providers to reduce costs and improve IT outcomes. The IT tasks that are commonly outsourced include the following:</p> <ul class="default-list"> <li>Software development.</li> <li><a href="https://www.techtarget.com/searchsecurity/definition/cybersecurity">Cybersecurity</a>.</li> <li>IT infrastructure management.</li> <li>IT helpdesk.</li> <li>Data center management.</li> <li>Data backup.</li> <li>Disaster recovery.</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="How to choose a business process outsourcing provider"> <h2 class="section-title"><i class="icon" data-icon="1"></i>How to choose a business process outsourcing provider</h2> <p>Enterprise executives should select BPO providers that can support their business objectives, as well as help them be more flexible, innovative and competitive. As such, organizations should consider more than just the price of a BPO contract when choosing a provider. They must also consider how well the provider can deliver on those other points, evaluating each provider to determine whether it has the following:</p> <ul class="default-list"> <li>An adequate understanding of the organization's business and industry.</li> <li>The capacity to meet current requirements, as well as to scale to meet future needs.</li> <li>An understanding and ability to meet <a href="https://www.techtarget.com/searchdatamanagement/definition/compliance">compliance</a> and regulatory requirements, as well as <a href="https://www.techtarget.com/searchcio/definition/data-privacy-information-privacy">data privacy</a> needs.</li> <li>Reporting metrics to demonstrate it is delivering on contractual standards.</li> <li>The geographical locations to meet business needs and regulatory requirements.</li> </ul> <p>Organizations should conduct their own needs assessment to identify business processes that would benefit from outsourcing. They should then get in contact with different BPO providers to determine which one best suits their needs and which creates the best RFP. After it picks one and agrees to the terms of the RFP, the organization should begin the transition process of shifting agreed-upon processes.</p> </section> <section class="section main-article-chapter" data-menu-title="Business process outsourcing market size"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Business process outsourcing market size</h2> <p>The widely known benefits of BPO explain why the global BPO market is consistently growing. Research firms predict that the market will continue to grow through the coming decade.</p> <p>For example, per Grand View Research, the size of the BPO market was approximately $302.62 billion in 2024. By 2030, the firm predicts that the size will grow to $525.23 billion, representing a CAGR of 9.8% from 2025 to 2030.</p> <p>Research firm Statista also maintains a positive outlook toward the BPO market. It predicts that the market volume will grow steadily at a CAGR of 3.39% (2025-2030) to reach $491.15 billion by 2030. Statista also forecasts that the market will generate revenues of $415.73 billion worldwide in 2025. Most of this revenue ($159.75 billion) will come from the U.S. Also, BPO providers in India will continue to dominate the market over the coming decade, according to Statista.</p> <p>The growth of the BPO market is driven by an increasing demand for outsourcing various business functions, like HR, customer services, data entry and other <a href="https://www.techtarget.com/searchcio/definition/core-competency">core competencies</a>.</p> </section> <section class="section main-article-chapter" data-menu-title="Current trends and future directions of the BPO industry"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Current trends and future directions of the BPO industry</h2> <p>The BPO industry is seeing numerous trends that highlight the industry's positive outlook. Key trends include the following:</p> <ul class="default-list"> <li><b>Cloud-based BPO offerings.</b> BPO vendors are increasingly offering cloud-based services that save on cost when compared to traditional BPO models that relied on expensive, proprietary on-premises systems. The <a href="https://www.techtarget.com/searchcloudcomputing/definition/cloud-computing">cloud model</a> also offers benefits such as flexibility and elasticity to meet demand spikes, real-time reporting and access to advanced technologies like <a href="https://www.techtarget.com/searchenterpriseai/definition/AI-Artificial-Intelligence">AI</a> that can improve business productivity and efficiency.</li> <li><b>Hybrid working models.</b> BPO vendors that provide traditionally outsourced business processes, such as call centers, are now able to work remotely. This minimizes business disruptions and keeps the outsourced processes running smoothly. Also, the provider can access a bigger talent pool to build a more competent team.</li> <li><b>Nearshoring operations becoming more popular.</b> Technologies, such as video conferencing, AI-enabled tools and robotic process automation (<a href="https://www.techtarget.com/searchcio/definition/RPA">RPA</a>) are driving down BPO costs, enabling vendors that nearshore business processes to offer more cost-effective services, almost on par with offshore vendors.</li> <li><b>Focus on data privacy and security. </b>The evolving regulatory environment coupled with the expanding <a href="https://www.techtarget.com/searchsecurity/tip/How-can-security-benefit-from-cyberthreat-intelligence">cyberthreat landscape</a> are forcing companies to revisit their data privacy and security controls. To protect sensitive data, they are implementing stringent measures -- and expecting their BPO vendors to do the same. Contracts and SLAs might include specific terms around data protection that providers must comply with.</li> </ul> <p>In general, the BPO industry continues to evolve, with more vendors emerging to offer specialized services or catering to specific sectors. Where previously only large companies opted to outsource some non-core processes, smaller businesses are also taking the BPO plunge, mainly to save money, tap into a global talent pool, and garner the benefits of cutting-edge technologies (without having to invest in those technologies).</p> <p>Also, BPO is no longer restricted to non-core processes and activities. Many companies outsource some strategic activities as well, in areas like finance, HR, sales, marketing, infrastructure management, software development and cybersecurity. Typically, these firms lack in-house skills to manage these tasks and acknowledge that outsourcing may be the right strategy to improve <a href="https://www.techtarget.com/searchbusinessanalytics/definition/operational-efficiency">operational efficiency</a> and ensure higher-quality outcomes.</p> <p>BPO vendors are contending with disruptions by taking advantage of the increased demand for their services. Many acknowledge that the practice of business process outsourcing could be at least partially displaced in <a href="https://www.techtarget.com/searchcio/tip/Process-automation-technologies-evolve-RPA-vs-BPA-vs-DPA">upcoming years by technology</a>. For example, RPA and AI can handle some frequently outsourced functions at lower costs and higher speeds, minimizing the need for organizations to invest in long-term BPO engagements.</p> <p>On the plus side, technology could also improve the efficiency and quality of BPO offerings. For example, <a href="https://www.techtarget.com/searchcustomerexperience/feature/How-AI-is-transforming-the-BPO-industry-and-contact-centers">AI intelligence</a> tools and machine learning models are facilitating smart automation and providing actionable insights that enable vendors to add new offerings to their service portfolio, improve existing offerings and offer greater value to clients. These advantages could convince more organizations that BPO is the optimal strategy to reduce costs and improve business efficiency.</p> <p><i>Organizations are deploying RPA at increasing rates to boost efficiency and accuracy. Learn how </i><a href="https://www.computerweekly.com/feature/How-robotic-process-automation-is-getting-smarter-as-it-evolves"><i>RPA is adding AI</i></a><i> to make it even more resilient and nimble.</i></p> </section> Business process outsourcing (BPO) is a business practice in which an organization contracts with an external service provider to perform an essential business function or task. https://cdn.ttgtmedia.com/visuals/digdeeper/5.jpg https://www.techtarget.com/searchcio/definition/business-process-outsourcing Tue, 28 Oct 2025 09:00:00 GMT <p>In the information technology (<a href="https://www.techtarget.com/searchdatacenter/definition/IT">IT</a>) ecosystem, a reseller is a company that purchases products or services from manufacturers, vendors or distributors and then sells them to customers. These transactions can be business-to-business (<a href="https://www.techtarget.com/searchcio/definition/B2B">B2B</a>) or business-to-consumer (<a href="https://www.techtarget.com/searchcustomerexperience/definition/B2C">B2C</a>). Resellers play a key role in the indirect sales channel, helping to streamline procurement, offer better pricing and deliver added services for customers.</p> <section class="section main-article-chapter" data-menu-title="Purpose of resellers in the IT channel"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Purpose of resellers in the IT channel</h2> <p>Resellers serve as intermediaries in the technology <a href="https://www.techtarget.com/whatis/definition/supply-chain">supply chain</a>, helping bridge the gap between product creators and end users. Their main objectives include the following:</p> <ul class="default-list"> <li><b>Simplifying procurement.</b> Businesses can source multiple IT solutions -- hardware, software, <a href="https://www.techtarget.com/searchitchannel/feature/Accenture-Channel-partner-ecosystem-taps-cloud-innovation">cloud services</a>, etc. -- from a single reseller instead of managing multiple vendor relationships.</li> <li><b>Fulfilling orders efficiently.</b> Resellers typically handle product sourcing, order processing, billing and delivery, which removes logistical burdens from the buyer.</li> <li><b>Offering competitive pricing</b>. Through vendor partnerships and bulk purchasing, resellers can offer bundled deals or better prices than those available when buying directly from original equipment manufacturers, or <a href="https://www.techtarget.com/searchitchannel/definition/OEM">OEMs</a>.</li> </ul> <p>Many companies, especially small to midsize businesses (<a href="https://www.techtarget.com/whatis/definition/SMB-small-and-medium-sized-business-or-small-and-midsized-business">SMBs</a>), prefer resellers for convenience, consultative selling and local presence.</p> </section> <section class="section main-article-chapter" data-menu-title="How resellers operate"> <h2 class="section-title"><i class="icon" data-icon="1"></i>How resellers operate</h2> <p>Resellers usually work within <a href="https://www.techtarget.com/searchitchannel/definition/partner-program">partner programs</a> offered by vendors or distributors. These programs provide the following:</p> <ul class="default-list"> <li><b>Discounted pricing.</b> Vendors offer tiered discounts (10% to 50% or more) depending on the reseller's purchase volume, specialization or partnership level.</li> <li><b>Deal registration and incentives.</b> Resellers can protect sales opportunities via <a href="https://www.techtarget.com/searchitchannel/definition/deal-registration">deal registration</a> and earn rebates or performance-based incentives.</li> <li><b>Marketing and technical support. </b>Vendors may supply resellers with co-branded <a href="https://www.informatechtarget.com/blog/3-steps-to-make-the-most-of-your-partner-marketing-budget-in-2024/">marketing</a> materials, training and sales support.</li> </ul> <p>Resellers make a profit by buying at a discount and selling at a markup, while managing fulfillment and customer support responsibilities.</p> </section> <section class="section main-article-chapter" data-menu-title="Common types of resellers"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Common types of resellers</h2> <p></p> <h3>1. Value-added reseller (VAR)</h3> <p>A <a href="https://www.techtarget.com/searchitchannel/definition/VAR">VAR</a> is a reseller that adds services such as installation, configuration, training, support or consulting to the core product. For example:</p> <ul class="default-list"> <li>An IT VAR might bundle networking equipment with on-site setup and integration.</li> <li>A software VAR might include licensing, implementation and <a href="https://www.techtarget.com/searchitoperations/feature/Configuration-management-vs-asset-management-simplified">asset management services</a>.</li> </ul> <p>VARs are common in industries where custom solutions are needed, such as enterprise IT, <a href="https://www.techtarget.com/searchsecurity/feature/Why-effective-cybersecurity-is-important-for-businesses">cybersecurity</a> and healthcare tech.</p> <h3>2. Direct market reseller (DMR)</h3> <p>DMRs sell IT products directly to customers online or via telephone without operating brick-and-mortar stores. This model is popular for high-volume, low-margin consumer and business tech. Examples include: CDW and Newegg.</p> <p>DMRs often compete on price, product range and fast delivery.</p> <h3>3. Web hosting and infrastructure resellers</h3> <p>In the hosting sector, resellers purchase server space or services from providers and resell them to smaller clients. A <a href="https://www.techtarget.com/whatis/definition/hosting-Web-site-hosting-Web-hosting-and-Webhosting">web hosting</a> reseller may rebrand services from a larger hosting firm or <a href="https://www.techtarget.com/searchdatacenter/How-to-design-and-build-a-data-center">data center</a> operator.</p> <h3>4. Virtual internet service providers (VISPs)</h3> <p>These are resellers that offer internet services under their own brand while using the infrastructure of a larger <b><a href="https://www.techtarget.com/whatis/definition/ISP-Internet-service-provider">ISP</a></b>. VISPs are particularly common in underserved or niche markets.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineImages/channel-distribution_channels.jpg"> <img data-src="https://www.techtarget.com/rms/onlineImages/channel-distribution_channels_mobile.jpg" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineImages/channel-distribution_channels_mobile.jpg 960w,https://www.techtarget.com/rms/onlineImages/channel-distribution_channels.jpg 1280w" alt="Info box describing the two types of distribution channels." height="252" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>Resellers or VARs may operate within one-tier or two-tier distribution channels. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> </section> <section class="section main-article-chapter" data-menu-title="Common industries that rely on resellers"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Common industries that rely on resellers</h2> <p>Resellers are integral to numerous segments of the IT industry:</p> <ul class="default-list"> <li><b>Enterprise software.</b> Large software vendors like <a href="https://www.techtarget.com/searchwindowsserver/definition/Microsoft">Microsoft</a>, Adobe and <a href="https://www.techtarget.com/searchitchannel/definition/IBM-International-Business-Machines">IBM</a> rely heavily on reseller networks to reach businesses of all sizes.</li> <li><b>Cybersecurity.</b> Companies like Fortinet, Sophos and Palo Alto Networks use VARs to implement and support complex cybersecurity solutions.</li> <li><b>Cloud services.</b> Resellers often partner with cloud providers (e.g., <a href="https://www.techtarget.com/searchaws/definition/Amazon-Web-Services">AWS</a>, <a href="https://www.techtarget.com/searchcloudcomputing/definition/Google-Cloud-Platform">Google Cloud</a>, <a href="https://www.techtarget.com/searchcloudcomputing/definition/Windows-Azure">Microsoft Azure</a>) to help clients onboard and manage services.</li> <li><b>IT hardware.</b> Servers, laptops, printers, networking gear and storage devices are commonly sold through resellers.</li> <li><b>Telecommunications and ISPs.</b> Many small ISPs rely on resellers to reach end users, particularly in regional or rural markets.</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="Reseller vs. distributor vs. dealer"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Reseller vs. distributor vs. dealer</h2> <p>Understanding the distinctions between different channel partner types is critical. A reseller buys from vendors or <a href="https://www.techtarget.com/whatis/definition/distributor">distributors</a> and sells to end customers, and might add services. A distributor buys in large quantities from manufacturers and sells to resellers or dealers. A dealer, often a small retail-oriented entity, sells directly to consumers. Resellers often work with distributors to gain access to a broader inventory and better pricing.</p> </section> <section class="section main-article-chapter" data-menu-title="Trends and challenges in the reseller model"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Trends and challenges in the reseller model</h2> <p>The reseller model is evolving rapidly in response to market demands:</p> <h3>Trends</h3> <ul class="default-list"> <li><b>Shift to recurring revenue models.</b> Resellers are increasingly selling subscriptions (<a href="https://www.techtarget.com/searchcloudcomputing/definition/Software-as-a-Service">SaaS</a>, <a href="https://www.techtarget.com/searchcloudcomputing/definition/Infrastructure-as-a-Service-IaaS">IaaS</a>) instead of one-time purchases.</li> <li><b>Vertical specialization.</b> Many are focusing on specific industries (e.g., healthcare, education) to provide tailored solutions.</li> <li><b>Partner ecosystems.</b> Resellers are forming alliances with other service providers to create bundled offerings.</li> </ul> <div class="youtube-iframe-container"> <iframe id="ytplayer-0" src="https://www.youtube.com/embed/WEqXH4PuF8c?si=a1tekP7rYmfwiren?autoplay=0&amp;modestbranding=1&amp;rel=0&amp;widget_referrer=null&amp;enablejsapi=1&amp;origin=https://www.techtarget.com" type="text/html" height="360" width="640" frameborder="0"></iframe> </div> <h3>Challenges</h3> <ul class="default-list"> <li><b>Margin pressure.</b> Cloud and direct-to-consumer sales channels have eroded traditional hardware resale margins.</li> <li><b>Vendor competition.</b> Some vendors now sell directly to customers, bypassing resellers and increasing channel conflict.</li> <li><b>Technical complexity. </b>Clients expect strategic guidance, forcing resellers to invest in certifications, engineering talent and managed services.</li> </ul> <p>To remain competitive, many resellers are transforming into managed service providers (MSPs) or consultative solution providers.</p> <p>As businesses demand end-to-end solutions and expert guidance, modern resellers are evolving into value-driven advisors and service providers. Whether through traditional product resale, added services or recurring cloud models, resellers continue to be a crucial part of the IT channel -- connecting vendors with customers and ensuring technology is delivered effectively, securely and strategically.</p> </section> In the information technology (IT) ecosystem, a reseller is a company that purchases products or services from manufacturers, vendors or distributors and then sells them to customers. These transactions can be business-to-business (B2B) or business-to-consumer (B2C). https://cdn.ttgtmedia.com/visuals/digdeeper/2.jpg https://www.techtarget.com/searchitchannel/definition/reseller Tue, 14 Oct 2025 09:00:00 GMT <p>Deal registration is a key feature of many vendors' channel partner programs, enabling a partner -- such as a value-added reseller (<a href="https://www.techtarget.com/searchitchannel/definition/VAR">VAR</a>), system integrator (SI) or managed services provider (<a href="https://www.techtarget.com/searchitchannel/definition/managed-service-provider">MSP</a>) -- to register a sales opportunity with the vendor before actively pursuing it. Once approved, the partner gains exclusive rights or priority access to that deal for a specified time, protecting them from competition with other partners or the vendor's own sales team.</p> <p>This process helps reduce channel conflict, increases visibility into the indirect <a href="https://www.techtarget.com/searchcustomerexperience/tip/How-to-manage-your-sales-pipeline">sales pipeline</a> and ensures that partners are rewarded for identifying and developing new opportunities.</p> <figure class="main-article-image half-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/itchannel-partner_program.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/itchannel-partner_program_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/itchannel-partner_program_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/itchannel-partner_program.png 1280w" alt="Info box outlining the five key elements of a partner program."> <figcaption> <i class="icon pictures" data-icon="z"></i>Deal registration is one of the 5 key elements of a partner program. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <section class="section main-article-chapter" data-menu-title="How the deal registration process works"> <h2 class="section-title"><i class="icon" data-icon="1"></i>How the deal registration process works</h2> <p>While deal registration processes vary by vendor, they typically follow a standardized flow designed to protect partner investments and streamline vendor support:</p> <ul class="default-list"> <li><b>Opportunity identification.</b> A channel partner identifies a qualified sales opportunity -- often a lead with a defined budget, authority, need and timeline (<a href="https://www.techtarget.com/searchcustomerexperience/definition/BANT">BANT</a>).</li> <li><b>Submission via portal.</b> The partner submits the opportunity using the vendor's <a href="https://www.techtarget.com/searchitchannel/definition/partner-portal">partner portal</a> or deal registration form. Modern portals often include dashboards, lead tracking and automated approval workflows.</li> <li><b>Evaluation and approval. </b>The vendor reviews the submitted opportunity to ensure it meets registration criteria (e.g., it's a net-new deal, not already in the pipeline, and the partner is in good standing). Approval timelines can range from 24 hours to several business days.</li> <li><b>Deal protection period. </b>If approved, the partner is granted deal protection -- a temporary exclusivity window where no other partner (or internal sales team) might pursue the same opportunity. Protection periods vary based on the <a href="https://www.techtarget.com/searchitchannel/feature/Key-concepts-of-the-MSP-sales-process">sales cycle's length</a> or partner tier.</li> <li><b>Support and collaboration. </b>Vendors might assist partners with technical pre-sales support, product demos, co-selling or marketing enablement to help close the deal.</li> <li><b>Closure and compensation. </b>Once the deal closes, the partner receives margin benefits or incentives based on their partner program status <strong>--</strong> often structured in <a href="https://www.channelfutures.com/channel-sales-marketing/is-partner-tiering-useful-many-partners-doubt-it">tiered programs</a> (e.g., Silver, Gold, Platinum).</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="Key benefits of deal registration"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Key benefits of deal registration</h2> <p>Deal registration offers strategic benefits to both vendors and partners.</p> <p>For partners, lead protection minimizes the risk of other partners or vendor reps hijacking deals. The partner might also gain access to technical experts, pricing discounts and <a href="https://www.techtarget.com/searchcustomerexperience/tip/5-digital-sales-enablement-tools-to-boost-productivity">sales enablement tools</a>. When it comes to margins, registered deals often yield better pricing, rebates or financial incentives for partners. And deal registration builds a stronger relationship with the vendor through demonstrated deal activity.</p> <p>On the vendor side, deal registration<b> </b>encourages proactive partner behavior and pipeline development, or improved partner engagement. At the same time, it mitigates channel conflict by reducing internal competition and confusion among multiple partners. It also<b> </b>increases pipeline visibility by providing early insights into market demand and partner performance <a href="https://www.techtarget.com/searchcustomerexperience/definition/business-metric">metrics</a>. And deal registration streamlines partner management by aligning marketing, sales and support resources with committed opportunities.</p> </section> <section class="section main-article-chapter" data-menu-title="Common challenges in deal registration"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Common challenges in deal registration</h2> <p>Despite its advantages, deal registration can present hurdles if poorly implemented. For example, clunky registration platforms can frustrate partners and discourage use. Some channel partners are deterred by slow approvals or delayed vendor responses that might cause them to lose momentum or confidence. While improvements to deal registration systems have eased the partner burden, disputes over lead ownership -- if two partners claim the same lead -- can lead to tension or disengagement. And vendors have been known to occasionally override registration to meet strategic goals or customer requests, eroding partner trust.</p> <p>However, with modern partner relationship management (<a href="https://www.techtarget.com/searchcustomerexperience/definition/partner-relationship-management-PRM">PRM</a>) software and clear policies, many of these issues have been reduced.</p> </section> <section class="section main-article-chapter" data-menu-title="Deal registration and channel conflict"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Deal registration and channel conflict</h2> <p>Channel conflict arises when multiple sales entities -- partners or vendor reps -- compete for the same customer. Deal registration helps to prevent or manage this by clearly assigning ownership of a lead, setting ground rules for competing bids, and protecting early-stage partner investments in lead nurturing.</p> <p>When properly enforced, deal registration aligns incentives and fosters partner <a href="https://www.techtarget.com/searchcustomerexperience/tip/4-types-of-loyalty-programs-and-their-benefits">loyalty</a> by rewarding the entity that brought the opportunity to the table.</p> </section> <section class="section main-article-chapter" data-menu-title="Best practices for successful deal registration programs"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Best practices for successful deal registration programs</h2> <p>To maximize the success of deal registration, vendors should follow these proven best practices:</p> <ol type="1" start="1" class="default-list"> <li><b>Define clear eligibility criteria.</b> Ensure partners know what qualifies as a valid registration (e.g., deal size, opportunity type, new logo vs. upsell).</li> <li><b>Automate and simplify.</b> Invest in an intuitive, automated portal to ease partner workflows and approval processes.</li> <li><b>Set transparent rules.</b> Document protection timeframes, escalation processes and what happens in overlapping lead scenarios.</li> <li><b>Provide timely feedback.</b> Respond quickly to partner submissions and communicate approvals or rejections clearly.</li> <li><b>Reward performance.</b> Tie deal registration to tangible benefits like better pricing, co-selling support or market development funds (<a href="https://www.techtarget.com/searchitchannel/definition/market-development-funds-MDF">MDF</a>).</li> <li><b>Audit and resolve disputes fairly.</b> Implement review mechanisms for contested registrations or override scenarios.</li> </ol> </section> <section class="section main-article-chapter" data-menu-title="Trends and innovations in deal registration tools"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Trends and innovations in deal registration tools</h2> <p>Modern deal registration programs are evolving with the help of technology. For example, <a href="https://www.techtarget.com/searchenterpriseai/definition/AI-Artificial-Intelligence">AI</a>-powered opportunity scoring<b> </b>or predictive algorithms help vendors assess deal viability more accurately. Mobile access and real-time notifications, allow partners to register deals via <a href="https://www.techtarget.com/whatis/definition/mobile-app">mobile apps</a> while in the field and receive real-time alerts to keep them informed of status changes, approvals or expiring protection windows.</p> <p>Seamless integration with customer relationship management (CRM) software, such as <a href="https://www.techtarget.com/searchcustomerexperience/definition/Salesforcecom">Salesforce</a>, HubSpot or <a href="https://www.techtarget.com/searchcustomerexperience/definition/Microsoft-Dynamics-365">Microsoft Dynamics</a>, enables better pipeline tracking. And tools automatically calculate and distribute partner rewards based on registration success.</p> <div class="youtube-iframe-container"> <iframe id="ytplayer-0" src="https://www.youtube.com/embed/hBotLYIPibc?si=-Awlwm8tQPWk0fXG?autoplay=0&amp;modestbranding=1&amp;rel=0&amp;widget_referrer=null&amp;enablejsapi=1&amp;origin=https://www.techtarget.com" type="text/html" height="360" width="640" frameborder="0"></iframe> </div> <p>Vendors are increasingly using partner ecosystems with centralized platforms that combine deal registration, enablement, training and support in a single user-friendly interface. When backed by clear policies and modern tools, deal registration programs can <a href="https://www.computerweekly.com/microscope/feature/Generative-AI-hits-the-channel-are-partners-ready?">strengthen vendor-partner collaboration</a> and accelerate sales growth across indirect channels.</p> </section> Deal registration is a key feature of many vendors' channel partner programs, enabling a partner -- such as a value-added reseller (VAR), system integrator (SI) or managed services provider (MSP) -- to register a sales opportunity with the vendor before actively pursuing it. https://cdn.ttgtmedia.com/visuals/digdeeper/5.jpg https://www.techtarget.com/searchitchannel/definition/deal-registration Fri, 10 Oct 2025 12:00:00 GMT <p>A distributor agreement -- also referred to as a distribution agreement -- is a legally binding contract between a vendor or manufacturer and a <u><a href="https://www.techtarget.com/whatis/definition/distributor">distributor</a></u>. This agreement outlines the terms under which the distributor may market, sell and sometimes service the vendor's products or services within a defined territory or market segment. It serves as the framework for managing the business relationship, ensuring clarity on the expectations, rights and responsibilities of both parties.</p> <p>These agreements are commonly used in business-to-business (<a href="https://www.techtarget.com/searchcio/definition/B2B">B2B</a>) commerce and global <a href="https://www.techtarget.com/whatis/definition/supply-chain">supply chains</a>, where indirect sales models and partner networks play a critical role in product distribution.</p> <section class="section main-article-chapter" data-menu-title="Why distributor agreements matter"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Why distributor agreements matter</h2> <p>In today's global and <a href="https://www.techtarget.com/searchcio/definition/digital-economy">digitally connected economy</a>, companies often rely on third parties to reach broader markets. A well-structured distributor agreement facilitates the following:</p> <ul class="default-list"> <li><b>Market penetration and efficiency.</b> Vendors can scale more effectively without directly managing every market.</li> <li><b>Brand consistency.</b> The agreement governs how products are marketed, priced and supported to ensure a consistent brand image.</li> <li><b>Risk mitigation.</b> Clear contractual terms help reduce misunderstandings and litigation risk.</li> <li><b>Compliance.</b> Distributors are held to local <a href="https://www.techtarget.com/searchcio/definition/regulatory-compliance">regulatory standards</a> and can be contractually required to follow ethical or legal guidelines.</li> </ul> <p>Without a proper agreement, vendors might face challenges such as unauthorized sales practices, poor customer experiences, pricing conflicts and loss of <a href="https://www.techtarget.com/whatis/definition/intellectual-property-IP">intellectual property</a> control.</p> </section> <section class="section main-article-chapter" data-menu-title="Typical elements of a distributor agreement"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Typical elements of a distributor agreement</h2> <p>A comprehensive distributor agreement typically includes these core components:</p> <ul class="default-list"> <li><b>Contract term.</b> Start and end dates, as well as renewal conditions.</li> <li><b>Territorial scope.</b> Regions, countries or market segments the distributor is authorized to serve.</li> <li><b>Product scope.</b> Specific products or product categories covered by the agreement.</li> </ul> <ul class="default-list"> <li><b>Exclusivity clause:</b></li> </ul> <ul class="default-list"> <li style="list-style-type: none;"> <ul style="list-style-type: circle;" class="default-list"> <li><i>Exclusive</i>. The distributor is the sole representative in a defined area.</li> <li><i>Nonexclusive</i>. Multiple distributors may operate in the same region.</li> </ul> </li> </ul> <ul class="default-list"> <li><b>Sales and marketing rights.</b> Guidelines for advertising, trade shows, online sales and <a href="https://www.techtarget.com/whatis/definition/lead-generation">lead generation</a>.</li> <li><b>Trademark and IP licensing.</b> How logos, trademarks and promotional assets may be used.</li> <li><b>Pricing and payment terms.</b> Wholesale pricing structure, volume discounts, invoicing and payment timelines.</li> <li><b>Performance obligations.</b> Sales targets, <a href="https://www.techtarget.com/searcherp/definition/inventory-management">inventory levels</a> and service requirements.</li> <li><b>Reporting and analytics.</b> Metrics, frequency and methods of reporting performance or market data.</li> <li><b>Termination clauses.</b> Circumstances under which the agreement may be canceled (e.g., breach of contract, insolvency or mutual consent).</li> <li><b>Dispute resolution.</b> Arbitration or legal processes to resolve disagreements</li> </ul> <p>These terms are designed to promote <a href="https://www.techtarget.com/whatis/definition/accountability">accountability</a>, reduce ambiguity and create a mutually beneficial relationship.</p> </section> <section class="section main-article-chapter" data-menu-title="Types of distribution strategies"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Types of distribution strategies</h2> <p>Before entering into distributor agreements, vendors must determine which distribution strategy aligns with their business goals:</p> <ul class="default-list"> <li><b>Selective distribution.</b> Involves working with a small number of vetted distributors to maintain brand control and protect pricing integrity -- common in B2B and luxury markets.</li> <li><b>Intensive distribution.</b> Broad placement through as many outlets as possible to maximize visibility and sales -- typically used for consumer goods.</li> <li><b>Exclusive distribution.</b> Assigns a single distributor per territory, usually with higher expectations for performance, training and brand alignment.</li> </ul> <p>Each strategy affects the legal structure and expectations outlined in the agreement.</p> </section> <section class="section main-article-chapter" data-menu-title="International distributor agreements"> <h2 class="section-title"><i class="icon" data-icon="1"></i>International distributor agreements</h2> <p>Many multinational companies sign international distributor agreements to expand into new markets. These contracts must address the following:</p> <ul class="default-list"> <li>Import/export compliance.</li> <li>Currency and tax implications.</li> <li>Local laws and dispute jurisdictions.</li> <li>Language and translation accuracy.</li> <li>Cultural considerations in sales and marketing.</li> </ul> <p>Distributors like Arrow Electronics, Ingram Micro and Tech Data often maintain subsidiaries in multiple countries to provide global <a href="https://www.techtarget.com/searcherp/definition/logistics">logistics</a>, market expertise and compliance support.</p> </section> <section class="section main-article-chapter" data-menu-title="Distributor agreement vs. dealer agreement"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Distributor agreement vs. dealer agreement</h2> <p>While similar, distributor agreements and dealer agreements serve different roles in the supply chain:</p> <table class="main-article-table"> <thead> <tr style="height: 25.0pt;"> <td valign="top" style="width: 53.3pt;"> <p><span style="color: #ecf0f1;"><b>Aspect</b></span></p> </td> <td valign="top" style="width: 234.95pt;"> <p><span style="color: #ecf0f1;"><b>Distributor Agreement</b></span></p> </td> <td valign="top" style="width: 179.65pt;"> <p><span style="color: #ecf0f1;"><b>Dealer Agreement</b></span></p> </td> </tr> </thead> <tbody> <tr style="height: 38.5pt;"> <td valign="top" style="width: 53.3pt;"> <p><b>Role</b></p> </td> <td valign="top" style="width: 234.95pt;"> <p>Middleman between vendor and dealers/resellers</p> </td> <td valign="top" style="width: 179.65pt;"> <p>Sells directly to end customers</p> </td> </tr> <tr style="height: 25.0pt;"> <td valign="top" style="width: 53.3pt;"> <p><b>Partner</b></p> </td> <td valign="top" style="width: 234.95pt;"> <p>Manufacturer/vendor</p> </td> <td valign="top" style="width: 179.65pt;"> <p>Distributor</p> </td> </tr> <tr style="height: 25.0pt;"> <td valign="top" style="width: 53.3pt;"> <p><b>Focus</b></p> </td> <td valign="top" style="width: 234.95pt;"> <p>Logistics, warehousing, bulk sales</p> </td> <td valign="top" style="width: 179.65pt;"> <p>Retail sales, end-user support</p> </td> </tr> <tr style="height: 38.5pt;"> <td valign="top" style="width: 53.3pt;"> <p><b>Payment</b></p> </td> <td valign="top" style="width: 234.95pt;"> <p>Bulk pricing and inventory management</p> </td> <td valign="top" style="width: 179.65pt;"> <p>End-user pricing and service margins</p> </td> </tr> </tbody> </table> <p>In a two-tier distribution model, a vendor supplies products to a distributor, which then provides goods to dealers, such as retailers, value-added resellers (<a href="https://www.techtarget.com/searchitchannel/definition/VAR">VARs</a>) or managed service providers (<a href="https://www.techtarget.com/searchitchannel/definition/managed-service-provider">MSPs</a>). Dealer agreements are essential in this model to define reseller behavior and end-user engagement terms.</p> </section> <section class="section main-article-chapter" data-menu-title="Legal considerations and compliance"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Legal considerations and compliance</h2> <p>Distributor agreements must be drafted carefully to ensure they comply with national and international trade laws, especially in these areas:</p> <ul class="default-list"> <li><b>Antitrust and competition law.</b> To prevent unfair monopolies or price fixing.</li> <li><b>Export control regulations.</b> Compliance with embargoes, sanctions and restricted goods.</li> <li><b>Anti-bribery and corruption policies.</b> Particularly important when operating in high-risk jurisdictions.</li> <li><b>Data privacy and cybersecurity clauses.</b> When customer or transaction data is shared between parties, agreements must ensure <a href="https://www.techtarget.com/searchcio/definition/data-privacy-information-privacy">data privacy</a>.</li> </ul> <p>Engaging legal counsel familiar with the relevant jurisdictions is critical during contract negotiation and periodic reviews.</p> </section> <section class="section main-article-chapter" data-menu-title="How to negotiate a distributor agreement"> <h2 class="section-title"><i class="icon" data-icon="1"></i>How to negotiate a distributor agreement</h2> <p>Negotiating an effective distributor agreement involves careful collaboration. Key tips for success include:</p> <ul class="default-list"> <li><b>Define goals upfront. </b>Clarify revenue targets, expansion timelines and territory priorities.</li> <li><b>Vet the distributor.</b> Assess financial stability, market knowledge and cultural fit.</li> <li><b>Involve stakeholders.</b> Include all <a href="https://www.techtarget.com/searchcio/definition/stakeholder">stakeholders</a> -- legal, marketing, finance and operations teams.</li> <li><b>Balance control and autonomy.</b> Ensure brand protection without micromanaging.</li> <li><b>Draft with clarity.</b> Use precise, plain language and clearly defined terms.</li> <li><b>Plan for audits and accountability. </b>Build in regular performance reviews, reporting and training expectations.</li> <li><b>Future-proof the contract. </b>Account for pricing adjustments, product updates and changes in local law.</li> </ul> <p>A distributor agreement is more than a contract. It's a foundation for sustainable growth in indirect sales models. With the right strategy, structure and partner alignment, companies can extend their reach, maintain brand integrity and drive consistent revenue across regions and industries. Successful agreements are collaborative, flexible and enforceable.</p> </section> A distributor agreement -- also referred to as a distribution agreement -- is a legally binding contract between a vendor or manufacturer and a distributor. https://cdn.ttgtmedia.com/visuals/digdeeper/4.jpg https://www.techtarget.com/searchitchannel/definition/distributor-agreement Thu, 09 Oct 2025 09:00:00 GMT <p>A chief marketing officer (CMO) is a&nbsp;<a href="https://www.techtarget.com/searchcio/definition/C-level">C-suite </a>executive responsible for overseeing the planning, development and execution of an organization's marketing and advertising initiatives.</p> <p>With a primary mandate to drive business growth, the CMO bridges the gap between brand perception and <a href="https://www.techtarget.com/searchcustomerexperience/definition/customer-engagement">consumer engagement</a>, ensuring that products and services resonate with current and potential customers.</p> <section class="section main-article-chapter" data-menu-title="Key roles and responsibilities of the CMO"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Key roles and responsibilities of the CMO</h2> <p>While the role of a C-suite marketing director might seem intuitively succinct, the position is a conglomeration of several roles, covering a broad range of responsibilities. This includes traditional concerns like marketing strategy and research, but also more modern aspects such as analytics, new integrated technology and emerging tools enabled by AI. Those roles and responsibilities incorporate the following key concepts:</p> <ul class="default-list"> <li><b>Strategic planning</b>. One of the core tasks of a CMO is to set the strategic direction for the marketing department. This involves <a href="https://www.techtarget.com/searchcio/definition/strategic-planning">strategic planning</a>, setting long-term goals and defining how these objectives will be met.</li> <li><b>Brand management</b>. In an age where brand perception can make or break a company, the CMO ensures brand messages are consistent across all platforms. By leveraging brand equity, they drive growth and position the company favorably in consumers' minds.</li> <li><b>Customer engagement</b>. The CMO understands that marketing activities don't end at acquisition. It's about creating lasting relationships. They craft customer engagement strategies that attract and retain customers, deepening these relationships over time.</li> <li><b>Digital, data-driven marketing &amp; analytics</b>. The CMO leverages analytics to derive actionable insights and oversees the governance of CRM and other customer-related data and processes. By understanding customer behavior, preferences and feedback, they can optimize marketing strategies for maximum return on investment (ROI). As the enterprise proceeds in digital transformation, the CMO is essential to that planning process.</li> <li><b>Market research.</b> The CMO oversees analytics concerning consumer and customer behaviors and the associated analytics -- both those of the enterprise and its competitors. Insights gleaned from this work help identify new opportunities and risks.</li> <li><b>Team leadership</b>. As leaders, CMOs oversee the marketing department, ensuring synergy in campaigns and initiatives. They also collaborate with other business units, ensuring marketing strategies align with overall company objectives.</li> <li><b>Development of new channels.</b> As new digital technologies proliferate, it’s up to the CMO to figure out which can be developed as new marketing channels and how to make that happen.</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="Required skills for a CMO"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Required skills for a CMO</h2> <p>The CMO role is a mix of artist and scientist. They possess creativity and analytical skills that help them craft compelling campaigns and measure their effectiveness simultaneously. Their leadership capabilities and interpersonal skills ensure smooth operations within the marketing department and effective collaborations with other teams.</p> <p>Because marketing is ever changing, a CMO must have a strong grasp of current marketing tools and strategies. They're always on the lookout for the next big trend or tool that can give their company an advantage.</p> <p>Additionally, understanding the <a href="https://www.techtarget.com/searchcustomerexperience/definition/customer-journey-map">customer journey</a> is crucial. A successful CMO can predict market trends, ensuring their company is always one step ahead in meeting customer needs. They can also integrate innovative technologies and methods into their marketing strategy, ensuring the company remains at the forefront of modern marketing techniques.</p> <p>The following skills can help make this happen:</p> <ul class="default-list"> <li><b>Strategic skills. </b>A CMO must be a good strategist, aligning marketing activities with organizational goals and cultivating a growth mindset, as well as driving digital transformation and institutional evolution.</li> <li><b>Branding expertise. </b>A CMO is the primary brand manager, responsible for the company’s marketplace identity; this expertise must be backed by a strong knowledge of marketing technology and analytics.</li> <li><b>Customer Insight. </b>A CMO must have an in-depth understanding of customer behavior and how to monitor it, including specifics such as personalization and cultural differences.</li> <li><b>Budget management.</b> A CMO works closely with the chief executive officer (<a href="https://www.techtarget.com/searchcio/definition/CEO">CEO</a>), Sales and Finance, and thus must have a command of the organizational big picture as well as budget management, ROI and market position.</li> </ul> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineImages/cust_ex-customer_journey_map-f.png"> <img data-src="https://www.techtarget.com/rms/onlineImages/cust_ex-customer_journey_map-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineImages/cust_ex-customer_journey_map-f_mobile.png 960w,https://www.techtarget.com/rms/onlineImages/cust_ex-customer_journey_map-f.png 1280w" alt="An image of a customer journey map, identifying five stages, including awareness, consideration, decision, service and loyalty. " height="516" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>Understanding the customer journey is crucial to the success of chief marketing officers. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> </section> <section class="section main-article-chapter" data-menu-title="Collaboration with other C-suite roles"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Collaboration with other C-suite roles</h2> <p>The CMO doesn't operate in a silo. They work alongside the CEO, ensuring that the company's vision and values are reflected in every marketing campaign.</p> <p>Budgets are crucial in marketing. Therefore, the CMO will often find themselves collaborating with the <a href="https://www.techtarget.com/searchcio/definition/CFO">chief financial officer</a> to manage finances and ensure a good ROI for their marketing initiatives.</p> <p>Furthermore, with the rise of digital marketing tools, the CMO frequently partners with the <a href="https://www.techtarget.com/searchcio/definition/Chief-Technology-Officer-CTO">chief technology officer</a> and IT departments. This collaboration ensures that the company's marketing tech stack is up-to-date, functional, and provides the necessary data for informed decisions.</p> </section> <section class="section main-article-chapter" data-menu-title="Chief marketing officer salary ranges"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Chief marketing officer salary ranges</h2> <p>Salaries for CMOs can vary widely based on several factors, including the size, location and industry of the company, as well as the CMO's level of experience and expertise. The following is a generalized overview of CMO salaries:</p> <ul class="default-list"> <li><b>Startups and small businesses</b>. CMOs at smaller firms, especially startups, might have a lower base salary supplemented with equity or stock options. According to a 2025 survey by recruitment platform Wellfound, CMO salaries can range from $54,000 to $427,000 annually.</li> <li><b>Mid-sized companies</b>. As businesses grow, so do the complexities and responsibilities of the CMO role. Per Glassdoor USA, for mid-size companies, CMOs might expect annual salaries in the range of $228,000 to $416,000.</li> <li><b>Large corporations</b>. At top-tier corporations, especially those operating internationally, CMOs play a pivotal role in shaping global strategies. According to Salary.com, annual base salaries in the U.S. can range from $333,000 to $416,000, with bonuses and equity pushing total compensation over $1 million. Additionally, bonuses, stock options and other compensation perks can significantly increase the total package.</li> </ul> <p>Salaries can vary based on the cost of living in a particular region or country. For instance, a CMO in San Francisco or New York City might command a higher salary than one in a smaller city given the higher living costs in those areas.</p> <p>Certain industries, especially tech, pharmaceuticals and finance, might offer higher compensation packages due to the high stakes and profitability of these sectors.</p> <p>Companies looking to hire and professionals seeking CMO roles should conduct thorough research, consult industry benchmarks and potentially engage with executive search professionals to get an accurate and current understanding of salary expectations in their specific context.</p> </section> <section class="section main-article-chapter" data-menu-title="Measurable impact and key performance indicators for a CMO"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Measurable impact and key performance indicators for a CMO</h2> <p>For any executive role, measurable impact is crucial. The CMO is no different, as their effectiveness is measured by the following:</p> <ul class="default-list"> <li><b>Key performance indicators.</b> The effectiveness of a CMO is measured by how successfully they manage KPIs. These include brand equity, which measures the value of the brand in the market, and customer lifetime value, which indicates the total worth of a customer over the duration of their relationship with the company. Additionally, the return on marketing investment provides insights into the effectiveness of marketing campaigns.</li> <li><b>Customer satisfaction metrics. </b>The ultimate testament to a CMO's success is the tangible affect they have on a company's growth and profitability. By driving brand awareness, ensuring customer satisfaction (<a href="https://www.techtarget.com/whatis/definition/customer-satisfaction-CSAT">CSAT</a>) and optimizing marketing strategies, they play a pivotal role in a company's success. Is customer lifetime value increasing? Is the customer retention rate strong? What are the CSAT numbers?</li> <li><b>Digital campaign effectiveness. </b>Are lead generation metrics strong? What is the typical campaign ROI? Is social media engagement high?</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="How to become a CMO"> <h2 class="section-title"><i class="icon" data-icon="1"></i>How to become a CMO</h2> <p>The road to the CMO's office is a long one. It is the culmination of a career spent acquiring marketing expertise, leadership skills and strategic acumen. Education is key; most CMOs have degrees in marketing, communications, business administration or related fields, and many have MBAs.</p> <p>There are several viable roles that can help prepare someone for the CMO's office. These include marketing assistant, a specialization in digital marketing, brand management and public relations roles, product marketing assistant and market research experience. Moving more deeply into these career paths, management in these areas is a strong step and executive roles such as director or vice president of marketing or communications are often a common final step.</p> </section> <section class="section main-article-chapter" data-menu-title="The evolving role of the CMO"> <h2 class="section-title"><i class="icon" data-icon="1"></i>The evolving role of the CMO</h2> <p>The role of the CMO was created at the beginning of the business era when merchants understood the need to differentiate their goods from competitors. The modern CMO, however, has evolved drastically since.</p> <p>Initially, marketing leadership primarily revolved around traditional advertising: billboards, TV commercials and print ads. These methods were effective in their time, providing a broad reach and creating <a href="https://www.techtarget.com/searchcustomerexperience/definition/brand-recognition">brand recognition</a> and recall.</p> <p>However, with the rapid growth of the internet and digital technologies in the late 20th and early 21st centuries, the landscape of advertising transformed. Marketers had many channels from which to choose, ranging from email campaigns to <a href="https://www.techtarget.com/whatis/definition/social-media-marketing-SMM">social media marketing</a> ads. This diversification in the marketing world led to increased complexity when managing and optimizing these channels.</p> <p>Companies soon realized the need for a dedicated role at the executive level to not just oversee marketing but also align it with broader business goals. The CMO rose in prominence, ensuring brand messages were consistent, impactful and drivers of growth.</p> <p>The role of the CMO is not static. It's always adapting to the demands of the market. Today, there's a shift from traditional marketing practices to dynamic, data-driven strategies. This change demands a CMO who's <a href="https://www.techtarget.com/searchcio/definition/enterprise-agility">agile</a>, informed and ready to adapt.</p> <p>Finally, the significance of the CMO extends beyond marketing. They influence business strategies, growth trajectories and even company culture. As ambassadors of the customer within the company, their insights and strategies are shaping the future of businesses globally.</p> <p><i>Sustainable marketing has grown in popularity and importance. Learn what </i><a href="https://www.techtarget.com/searchcustomerexperience/tip/Best-practices-for-a-sustainable-marketing-strategy"><i>strategies organizations can implement</i></a><i> to align their marketing campaigns with customer values and reduce harm to the environment. </i></p> </section> A chief marketing officer (CMO) is a C-suite executive responsible for overseeing the planning, development and execution of an organization's marketing and advertising initiatives. https://cdn.ttgtmedia.com/visuals/digdeeper/1.jpg https://www.techtarget.com/searchcio/definition/CMO-chief-marketing-officer Tue, 23 Sep 2025 10:15:00 GMT <p>A channel strategy is a vendor's plan for delivering a product or service to end customers through direct or indirect sales channels. It defines the structure, partners, and tactics used to distribute offerings, support customers, and maximize market reach.</p> <p>Channel strategy is an essential component of a company's broader <a href="https://www.techtarget.com/searchitchannel/definition/go-to-market-strategy-GTM-strategy">go-to-market (GTM) approach</a>, ensuring products reach their intended audience efficiently and competitively.</p> <section class="section main-article-chapter" data-menu-title="The purpose of a channel strategy"> <h2 class="section-title"><i class="icon" data-icon="1"></i>The purpose of a channel strategy</h2> <p>In <a href="https://www.techtarget.com/searchcio/definition/B2B">B2B</a> and <a href="https://www.techtarget.com/searchcustomerexperience/definition/B2C">business-to-consumer</a> contexts alike, a channel strategy helps companies:</p> <ul class="default-list"> <li>Identify the most effective sales and distribution channels.</li> <li>Engage partners appropriate for specific product and service needs.</li> <li>Expand into new geographic or vertical markets.</li> <li>Optimize resource allocation for marketing and sales.</li> </ul> <p>For example, a company selling low-complexity software may rely on self-service digital sales, while one selling enterprise infrastructure may need help from <a href="https://www.techtarget.com/searchitchannel/definition/systems-integrator">systems integrators</a> or <a href="https://www.techtarget.com/searchitchannel/definition/VAR">value-added resellers (VARs)</a> to implement and support customer deployments.</p> <figure class="main-article-image half-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/it_channel-building_better_distro_relations-h.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/it_channel-building_better_distro_relations-h_half_column_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/it_channel-building_better_distro_relations-h_half_column_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/it_channel-building_better_distro_relations-h.png 1280w" alt="A chart describing what's needed to build a successful relationship with a distributor." height="201" width="279"> <figcaption> <i class="icon pictures" data-icon="z"></i>As part of their channel strategy, companies typically identify partners who can help them optimize their distribution channel through a mutually beneficial relationship. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> </section> <section class="section main-article-chapter" data-menu-title="Types of channel strategies"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Types of channel strategies</h2> <p>Organizations can pursue a variety of channel strategies depending on product type, target market, and their growth objectives:</p> <h3>Direct sales</h3> <p>A direct channel strategy involves the vendor selling products or services directly to customers. Common direct sales methods include:</p> <ul class="default-list"> <li>In-house sales teams engaging with enterprise buyers</li> <li><a href="https://www.techtarget.com/searchcontentmanagement/tip/How-to-make-a-successful-e-commerce-website">E-commerce websites</a> supporting online self-service purchases</li> <li>Catalog or phone-based sales for niche or legacy markets.</li> </ul> <p>Direct sales provide vendors with complete control over pricing, messaging, and customer relationships.</p> <h3>Indirect sales</h3> <p>An indirect strategy uses intermediaries such as channel partners to sell and support products. Common partner types include:</p> <ul class="default-list"> <li>Retailers and e-tailers</li> <li>VARs that bundle solutions and offer services</li> <li>Distributors that supply products to a network of resellers</li> <li>Managed Service Providers (<a href="https://www.techtarget.com/searchitchannel/definition/managed-service-provider">MSPs</a>)</li> <li>Consultants</li> <li><a href="https://www.techtarget.com/searchitchannel/definition/OEM">Original Equipment Manufacturers</a></li> <li><a href="https://www.techtarget.com/searchitchannel/definition/ISV">Independent software vendors</a></li> </ul> <p>In a one-tier distribution model, vendors sell directly to VARs. In a two-tier model, vendors sell to distributors, who then sell to VARs or retailers.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/how_a_value_added_reseller_works-f.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/how_a_value_added_reseller_works-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/how_a_value_added_reseller_works-f_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/how_a_value_added_reseller_works-f.png 1280w" alt="A chart describing the core functions of a Value-Added Reseller (VAR) as channel strategy partners." height="258" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>VARs can be valuable channel strategy partners; they are often called on to provide bundled services that may include product implementation and training. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <p>Channel partner programs often support these relationships with training, marketing support, <a href="https://www.techtarget.com/searchitchannel/definition/deal-registration">deal registration</a>, and <a href="https://www.techtarget.com/searchitchannel/news/252506556/Cisco-partner-program-aims-to-cut-complexity-via-portal">partner portals.</a></p> <h3>Consumer channels</h3> <p>In consumer markets, companies may deploy:</p> <ul class="default-list"> <li>Multichannel strategies, combining direct methods (e.g., catalogs, email) and indirect ones (e.g., social media, retail).</li> <li><a href="https://www.techtarget.com/searchcustomerexperience/tip/How-to-create-an-omnichannel-marketing-strategy">Omnichannel strategies</a>, delivering <a href="https://www.techtarget.com/searchcustomerexperience/tip/7-benefits-of-customer-experience-management">seamless customer experiences</a> across all digital and physical touchpoints.</li> </ul> <div class="youtube-iframe-container"> <iframe id="ytplayer-0" src="https://www.youtube.com/embed/sG9PRsvfr5Q?autoplay=0&amp;modestbranding=1&amp;rel=0&amp;widget_referrer=null&amp;enablejsapi=1&amp;origin=https://www.techtarget.com" type="text/html" height="360" width="640" frameborder="0"></iframe> </div> <p>These models are used in B2B contexts increasingly as well, especially for <a href="https://www.techtarget.com/searchcloudcomputing/definition/Software-as-a-Service">SaaS</a> and digital-first offerings.</p> </section> <section class="section main-article-chapter" data-menu-title="How to create a channel strategy"> <h2 class="section-title"><i class="icon" data-icon="1"></i>How to create a channel strategy</h2> <p>Developing a channel strategy requires a structured approach:</p> <ol class="default-list"> <li><b>Define the GTM objectives.</b> Align the strategy with broader company goals such as market expansion, revenue growth, or <a href="https://www.techtarget.com/searchcustomerexperience/definition/customer-retention">customer retention</a>.</li> <li><b>Segment the market.</b> Identify key customer types and their buying preferences.</li> <li><b>Assess product complexity.</b> Simpler products may suit digital channels; complex solutions often need expert partners.</li> <li><b>Evaluate potential channel types.</b> Consider direct vs. indirect and the specific partner roles required.</li> <li><b>Design incentives and support.</b> Create a partner program with onboarding, enablement, and <a href="https://www.computerweekly.com/microscope/feature/Rewarding-the-value-add">performance incentives</a>.</li> <li><b>Establish rules of engagement. </b>Avoid <a href="https://www.techtarget.com/searchitchannel/definition/channel-conflict">channel conflict</a> by <a href="https://www.techtarget.com/searchitchannel/definition/channel-partner-rules-of-engagement-ROE">clarifying roles</a> and lead ownership.</li> </ol> <p>For example, a vendor may use direct sales for large enterprise clients while assigning SMB accounts to channel partners.</p> </section> <section class="section main-article-chapter" data-menu-title="Channel conflict and segmentation"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Channel conflict and segmentation</h2> <p>When vendors use both direct and indirect channels, conflicts can arise if boundaries are not clear. Common causes of channel conflict include:</p> <ul class="default-list"> <li>Direct sales teams targeting accounts already served by partners</li> <li>Unclear or overlapping sales territories</li> <li>Competition over pricing or discounts.</li> </ul> <p>To mitigate these issues, companies may:</p> <ul class="default-list"> <li>Segment accounts by size, industry, or geography</li> <li>Define lead ownership and sales stages in partner agreements</li> <li>Use deal registration tools to protect partner opportunities</li> <li>Publish rules of engagement to guide internal and partner behavior.</li> </ul> <p>Successful <a href="https://www.techtarget.com/searchcustomerexperience/definition/market-segmentation">segmentation</a> ensures partners feel supported rather than undercut. This careful approach encourages long-term loyalty and performance.</p> </section> <section class="section main-article-chapter" data-menu-title="Channel strategy in digital transformation"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Channel strategy in digital transformation</h2> <p>As organizations shift toward subscription-based and <a href="https://www.techtarget.com/searchcio/tip/How-to-build-a-digital-transformation-roadmap-in-6-steps">digital-first business models</a>, channel strategies must align accordingly:</p> <ul class="default-list"> <li><b>SaaS distribution</b>. Cloud marketplaces (e.g., AWS Marketplace, Microsoft Azure Marketplace) enable partners to resell SaaS offerings.</li> <li><b>Self-service onboarding</b>. Partners increasingly help customers onboard and adopt products using digital tools.</li> <li><b>Recurring revenue models</b>. Channel programs must support <a href="https://www.techtarget.com/searchitchannel/definition/monthly-recurring-revenue-MRR">monthly recurring revenue</a> tracking, upselling and renewals.</li> <li><b>Data-driven partner management</b>. As part of <a href="https://www.techtarget.com/searchcustomerexperience/definition/partner-relationship-management-PRM">partner relationship management</a>, vendors can use analytics to assess partner performance, optimize incentives, and forecast channel ROI.</li> </ul> <p>A modern channel strategy emphasizes agility, automation and customer lifetime value over one-time product sales.</p> </section> <section class="section main-article-chapter" data-menu-title="Metrics to measure channel strategy effectiveness"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Metrics to measure channel strategy effectiveness</h2> <p>Vendors use a variety of metrics to evaluate and refine their channel strategies:</p> <ul class="default-list"> <li><b>Channel revenue contribution</b>. The percentage of overall revenue that channel partners generate</li> <li><b>Partner performance.</b> Sales volume, deal size, win rate, and customer satisfaction by partner</li> <li><b>Onboarding success rate</b>. Speed and effectiveness of partner enablement</li> <li><b>Channel conflict resolution time</b>. Average time to resolve disputes between direct and indirect teams</li> <li><b>Market coverage</b>. Breadth of customer segments, industries, or geographies that partners serve.</li> </ul> <p>These <a href="https://www.techtarget.com/searchbusinessanalytics/definition/key-performance-indicators-KPIs">key performance indicators</a> help vendors gauge the success of their partner mix, investment priorities, and support programs and can guide them in making necessary adjustments.</p> <p><i>Learn how </i><a href="https://www.techtarget.com/searchcustomerexperience/feature/Customer-communications-management-key-to-CX-success"><i>customer communications management</i></a><i>, facilitated by generative AI and other technologies, is key to improving customer experience success for B2B and B2C businesses alike. </i></p> </section> A channel strategy is a vendor's plan for delivering a product or service to end customers through direct or indirect sales channels. https://cdn.ttgtmedia.com/visuals/digdeeper/1.jpg https://www.techtarget.com/searchitchannel/definition/channel-strategy Thu, 04 Sep 2025 09:00:00 GMT <p>A channel partner is a person or organization that partners with a manufacturer or producer to market, sell, and deliver their products or services to the end customer. They form part of a company's <a href="https://www.techtarget.com/searchitchannel/definition/distribution-channel">distribution channel</a>, which is the path a product takes from producer to consumer.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/distribution_channel_levels-f.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/distribution_channel_levels-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/distribution_channel_levels-f_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/distribution_channel_levels-f.png 1280w" alt="A chart comparing three distribution channel levels and the types of entities, such as channel partners, involved at each level." height="324" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>Distribution channels range from simple to complex; channel partners help advance a producer's goals at any of the three distribution channel levels shown here. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <p>While channel partner is a term perhaps most familiar in the tech industry, the idea of using intermediaries to reach customers is ubiquitous and seen in many industries such as food and beverage, apparel, and automobiles.</p> <p>Bridging gaps between vendors and end customers, channel partners help extend market reach, provide localized support, and deliver specialized services. Channel partners often receive <a href="https://www.computerweekly.com/microscope/feature/Rewarding-the-value-add">incentives</a>, training, and technical resources from the manufacturer or producer (commonly called the vendor) to support their efforts.</p> <p>Channel partners can be a wide variety of entities, including:</p> <ul class="default-list"> <li><b>Retailers.</b> An example is a large supermarket chain selling a food producer's products.</li> <li><b>Distributors.</b> These companies buy products in bulk from manufacturers/vendors and sell them to retailers or other businesses.</li> <li><b>Value-added resellers (VARs).</b> These partners sell a product but also add their own services to it, like a company that sells software and also offers implementation and training.</li> <li><b>Affiliates.</b> Individuals or businesses that earn a commission for referring customers to a company's products.</li> </ul> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/how_a_value_added_reseller_works-f.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/how_a_value_added_reseller_works-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/how_a_value_added_reseller_works-f_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/how_a_value_added_reseller_works-f.png 1280w" alt="A chart describing the functions of a value-added-reseller (VAR) in a distribution channel." height="258" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>VARs often add more features or repackage products that can make them more compelling to customers, advancing the producer's sales goals. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <section class="section main-article-chapter" data-menu-title="Channel partners in technology"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Channel partners in technology</h2> <p>In technology, channel partner <a href="https://www.techtarget.com/searchitchannel/news/252525643/Channel-partner-programs-evolve-amid-digital-transformation">models have evolved</a>. Each plays a distinct role:</p> <ul class="default-list"> <li><b>VARs</b>. These partners resell hardware, software, or services with additional value, such as custom configuration, installation, training, or support. Initially prominent in the minicomputer era of the 1970s, <a href="https://www.techtarget.com/searchitchannel/definition/VAR">VARs</a> <a href="https://www.computerweekly.com/microscope/opinion/AI-plans-gather-pace-but-expert-partners-are-the-key-to-success">remain influential</a> in networking and cloud services today.</li> <li><b>Systems integrators (SIs)</b>. These partners specialize in connecting and customizing IT systems from different vendors to meet complex business needs. SIs became especially prominent during the 1980s as enterprise IT environments grew more complex.</li> <li><b>Consultants</b>. IT <a href="https://www.techtarget.com/searchitchannel/news/366627818/Consultants-SIs-back-AWS-agentic-AI-marketplace-launch">consultants</a> provide expert advice and planning services without necessarily reselling products. Some focus on strategic digital transformation, cloud adoption, cybersecurity, or compliance.</li> <li><b>Managed service providers (MSPs)</b>. <a href="https://www.techtarget.com/searchitchannel/Guide-to-building-and-executing-an-MSP-business-model">MSPs</a> remotely manage a customer's IT infrastructure and end-user systems. Many VARs have transitioned into or added MSP services as recurring revenue models have gained popularity.</li> <li><b>Distributors</b>. Distributors act as intermediaries between vendors and resellers, supplying a wide range of products. They often provide logistics, credit services, and partner enablement.</li> <li><b>Original equipment manufacturers (OEMs) and independent software vendors (ISVs)</b>. <a href="https://www.techtarget.com/searchitchannel/definition/OEM">OEM</a>s build hardware that includes a vendor's product, while <a href="https://www.techtarget.com/searchitchannel/definition/ISV">ISV</a>s develop software that can be bundled with or enhance the vendor's offering.</li> </ul> <div class="youtube-iframe-container"> <iframe id="ytplayer-0" src="https://www.youtube.com/embed/jdZ7xqNENbA?autoplay=0&amp;modestbranding=1&amp;rel=0&amp;widget_referrer=null&amp;enablejsapi=1&amp;origin=https://www.techtarget.com" type="text/html" height="360" width="640" frameborder="0"></iframe> </div> <p>Many channel partners today combine multiple roles, providing consulting, integration, resale, and managed services.</p> </section> <section class="section main-article-chapter" data-menu-title="Partnering among channel partners"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Partnering among channel partners</h2> <p>Channel partners frequently form alliances with one another to:</p> <ul class="default-list"> <li>Expand into new <a href="https://www.techtarget.com/searchitchannel/definition/vertical-market">vertical market</a>s or regions.</li> <li>Fill gaps in service offerings or expertise.</li> <li>Leverage joint solutions to address larger or more complex client needs.</li> </ul> <p>For example, a VAR might partner with a specialized security consultant to deliver a bundled offering. Likewise, multiple MSPs may join forces to provide 24/7 support across different time zones.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineImages/channel-distribution_channels.jpg"> <img data-src="https://www.techtarget.com/rms/onlineImages/channel-distribution_channels_mobile.jpg" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineImages/channel-distribution_channels_mobile.jpg 960w,https://www.techtarget.com/rms/onlineImages/channel-distribution_channels.jpg 1280w" alt="A chart that compares channel partner relationships in one-tier and two-tier distribution models." height="252" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>Channel partner relationships work differently in one-tier and two-tier distribution models. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <p>VAR-to-VAR partnerships also occur when firms collaborate to bid on large projects, exchange services, or take advantage of one another's certifications or compliance capabilities. <a href="https://www.computerweekly.com/microscope/opinion/Key-considerations-to-prepare-for-a-partner-first-power-play">Successful partnerships</a> typically depend on mutual benefit and trust.</p> </section> <section class="section main-article-chapter" data-menu-title="Optimizing channel partner relationships"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Optimizing channel partner relationships</h2> <p>Vendor-partner relationships are often formalized through a channel partner program. Leading IT vendors such as AWS, Microsoft, Cisco, Dell Technologies, Oracle, HPE and IBM all operate formal channel partner programs to engage with and support their partners. These programs offer a variety of resources to attract, enable, and retain partners, such as:</p> <ul class="default-list"> <li>Training and certification programs;</li> <li>Product and marketing support;</li> <li><a href="https://www.techtarget.com/searchitchannel/definition/deal-registration">Deal registration</a> and lead sharing tools;</li> <li>Incentives, rebates, and co-selling opportunities;</li> <li>Access to beta programs or early product releases; and</li> <li>Co-branding and joint marketing campaigns.</li> </ul> <p>Vendor channel managers (also called channel account managers) help onboard new partners and maintain active relationships. Many vendors also deploy partner portals and use partner relationship management (<a href="https://www.techtarget.com/searchcustomerexperience/definition/partner-relationship-management-PRM">PRM</a>) platforms to centralize tools, metrics, and communication.</p> <p>Clear expectations, transparency in sales engagement, and accessible technical support are key to strong vendor-partner collaboration. Getting all that right requires developing and applying a <a href="https://www.computerweekly.com/microscope/news/366611840/HPE-unifies-channel-team-to-improve-experiences">sensible strategy</a>.</p> </section> <section class="section main-article-chapter" data-menu-title="Channel partner certifications"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Channel partner certifications</h2> <p>Certification programs validate that a channel partner has met specific technical and business requirements to represent a vendor's products or services. These certifications benefit both the vendor and partner:</p> <ul class="default-list"> <li><b>Vendors</b> gain assurance that <a href="https://www.computerweekly.com/microscope/news/252499727/Palo-Alto-emphasises-channel-specialisations">certified partners</a> can deliver high-quality deployments.</li> <li><b>Partners</b> can differentiate themselves in the market and qualify for exclusive program tiers.</li> </ul> <p>For example:</p> <ul class="default-list"> <li>Cisco offers tiered certifications (Select, Premier, Gold, etc.) with increasing levels of training, rebates and support.</li> <li>AWS grants benefits such as <a href="https://www.techtarget.com/searchitchannel/definition/market-development-funds-MDF">market development funds</a> to consulting partners who meet specific technical and staffing benchmarks.</li> </ul> <p>Certification levels often influence deal access, service margins, and partner directory visibility.</p> </section> <section class="section main-article-chapter" data-menu-title="Channel partners vs. direct sales"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Channel partners vs. direct sales</h2> <p>Technology vendors often balance both direct sales and channel sales strategies. Here's how the two approaches differ:</p> <ul class="default-list"> <li><b>Direct sales</b>. Internal sales representatives engage directly with end customers, often focusing on large or strategic accounts.</li> <li><b>Channel sales</b>. Third-party partners manage the sales and delivery process, often for SMBs or regional markets.</li> </ul> <p>To prevent channel conflict (where both sales teams compete for the same account), vendors typically publish <a href="https://www.techtarget.com/searchitchannel/definition/channel-partner-rules-of-engagement-ROE">rules of engagement</a> that outline:</p> <ul class="default-list"> <li>Which team owns specific types of leads</li> <li>How deal registration protects a partner's opportunity</li> <li>Incentive structures for each channel</li> </ul> <p>Some vendors prioritize a <a href="https://www.computerweekly.com/microscope/news/366575553/Goldilock-makes-move-to-channel-first-model">channel-first model</a>, relying almost entirely on partners to generate and close sales, while others maintain a hybrid approach.</p> </section> <section class="section main-article-chapter" data-menu-title="Benefits of using channel partners"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Benefits of using channel partners</h2> <p>Engaging with channel partners offers several strategic benefits to vendors:</p> <ul class="default-list"> <li><b>Scalability</b>. Partners extend sales and service capabilities without requiring internal hiring or infrastructure, such as an extensive sales force, retail locations or a distribution network.</li> <li><b>Market penetration</b>. Local partners bring market knowledge and access to niche industries or underserved regions.</li> <li><b>Faster time to market</b>. Established channel networks accelerate product adoption and deployment. This can be <a href="https://www.techtarget.com/searchitchannel/news/366624477/Partner-marketing-for-startups-gets-specialized-integrated">especially important for a tech startup</a>.</li> <li><b>Customer trust</b>. Many end users prefer working with local or specialized firms they already know.</li> <li><b>Cost efficiency</b>. Channel sales often reduce the vendor's cost of customer acquisition.</li> </ul> <p>For partners, benefits include revenue diversification, recurring revenue opportunities, access to new technologies, and additional marketing support (by leveraging the vendor's brand and resources).</p> </section> <section class="section main-article-chapter" data-menu-title="Trends shaping the future of channel partnerships"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Trends shaping the future of channel partnerships</h2> <p>The channel landscape is evolving rapidly as IT consumption patterns shift. Emerging trends include:</p> <ul class="default-list"> <li><a href="https://www.techtarget.com/searchcloudcomputing/definition/XaaS-anything-as-a-service"><b>XaaS (Everything as a Service)</b></a>. As businesses adopt subscription-based models, partners are adapting to sell and manage <a href="https://www.techtarget.com/searchcloudcomputing/definition/Software-as-a-Service">SaaS</a>, <a href="https://www.techtarget.com/searchcloudcomputing/definition/Platform-as-a-Service-PaaS">PaaS</a>, and <a href="https://www.techtarget.com/searchcloudcomputing/definition/Infrastructure-as-a-Service-IaaS">IaaS</a> services.</li> <li><b>Ecosystem orchestration</b>. Vendors are encouraging partners to collaborate and co-innovate, rather than compete.</li> <li><b>AI and automation</b>. Partners are building service offerings around AI-powered solutions and automating service delivery.</li> <li><b>Partner marketplaces</b>. Vendors now offer digital marketplaces where partners can publish, sell, or bundle their solutions.</li> <li><b>Security and compliance focus</b>. With increasing cyber threats, partners with strong security and regulatory expertise are in <a href="https://www.computerweekly.com/microscope/news/366627782/OT-security-a-channel-opportunity">high demand</a>.</li> </ul> <p>Vendors must continue to invest in tools that enable channel partners and flexible program models to meet partners where they are in their journey.</p> <p><i>Having a working go-to-market strategy with trustworthy distribution partners is important in supply chain management. Learn about the</i><a href="https://www.techtarget.com/searcherp/feature/Supply-chain-risks-can-be-costly-if-companies-fall-behind"><i>risks that come with the supply chain</i></a><i>, and what companies can do to avoid falling behind.</i></p> </section> A channel partner is a person or organization that partners with a manufacturer or producer to market, sell, and deliver their products or services to the end customer. https://cdn.ttgtmedia.com/visuals/digdeeper/3.jpg https://www.techtarget.com/searchitchannel/definition/channel-partner Thu, 04 Sep 2025 09:00:00 GMT <p>Sustainable marketing is a purpose-driven strategy that promotes products, services and brand values aligned with long-term environmental, social and economic well-being. It goes beyond simply advertising eco-friendly products or relying on traditional marketing, which is mainly focused on short-term profits. Instead, sustainable marketing embeds sustainability into the core of a company's marketing strategy and operations.</p> <p>Consumers often encounter sustainable marketing when they choose to spend more on items that are locally sourced, ethically produced or fully recyclable. This reflects the growing influence of sustainability in purchasing decisions, especially among younger generations, who actively seek out brands that align with their environmental values.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/components_of_sustainable_marketing-f.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/components_of_sustainable_marketing-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/components_of_sustainable_marketing-f_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/components_of_sustainable_marketing-f.png 1280w" alt="Diagram describing the components of sustainable marketing: environmental, social and governance practices" height="252" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>Sustainable marketing describes any marketing campaign focused on an organization's environmental, social and corporate governance practices. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <section class="section main-article-chapter" data-menu-title="What are the benefits of sustainable marketing?"> <h2 class="section-title"><i class="icon" data-icon="1"></i>What are the benefits of sustainable marketing?</h2> <p>Sustainable marketing offers a wide range of benefits that go far beyond a company's public image. It's a strategic approach that can drive long-term growth and resilience. The following are some of the <a href="https://www.techtarget.com/searchcustomerexperience/feature/Why-is-sustainable-marketing-important">key benefits of sustainable marketing</a>:</p> <ul class="default-list"> <li><b>Brand trust and reputation.</b> Sustainable marketing helps build a brand that consumers trust. When companies authentically commit to environmental and social responsibility, they stand out in a crowded marketplace. This credibility fosters deeper connections with customers and enhances a brand's reputation.</li> <li><b>Increased customer loyalty and sales.</b> Many consumers, especially the younger generations, are increasingly drawn to brands that reflect their values. Sustainable marketing taps into this demand, encouraging loyalty and even premium purchases. <a target="_blank" href="https://www.ptengine.com/blog/business-strategy/sustainable-success-patagonias-unique-approach-to-digital-marketing/" rel="noopener">Campaigns</a>, that highlight eco-consciousness, such as Patagonia's, have been shown to boost both engagement and revenue.</li> <li><b>Talent attraction and retention.</b> Purpose-driven brands don't just attract customers, they attract top talent as well. Employees want to work for organizations that align with their values. Sustainable marketing effectively communicates this purpose, helping companies recruit and retain passionate and committed team members.</li> <li><b>Investor appeal and long-term value.</b> Investors increasingly see sustainability as a marker of long-term success. Brands that demonstrate environmental and social responsibility are seen as lower-risk and more resilient. By transparently communicating sustainability efforts, companies can strengthen stakeholder trust, attract purpose-driven capital and enhance their valuation over time.</li> <li><b>Competitive advantage.</b> Sustainability is becoming a standard requirement in many government and corporate contracts. Companies that integrate sustainable practices into their marketing and operations gain a competitive edge, positioning themselves as responsible and forward-thinking suppliers. Environmental, social and governance (<a href="https://www.techtarget.com/whatis/definition/environmental-social-and-governance-ESG">ESG</a>) factors are also gaining prominence among investors, who increasingly view sustainable companies as lower-risk and better equipped for long-term financial success.</li> <li><b>Innovation and circular thinking.</b> Sustainable marketing encourages companies to rethink traditional models by embracing innovation and circular economy principles. This involves designing products and services that minimize waste, extend lifecycle value and promote reuse or recycling. Brands that prioritize sustainable innovation not only reduce their environmental footprint but also position themselves as forward-thinking leaders in their industry.</li> <li><b>Alignment with consumer expectations.</b> Modern consumers expect transparency and authenticity. Sustainable marketing meets these expectations by showcasing real efforts and measurable impact. It also helps brands avoid the pitfalls of <a href="https://www.techtarget.com/whatis/definition/greenwashing">greenwashing</a>, reinforcing trust and long-term customer relationships.</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="5 principles to guide a sustainable marketing strategy"> <h2 class="section-title"><i class="icon" data-icon="1"></i>5 principles to guide a sustainable marketing strategy</h2> <p>The following are five principles that can guide a company's <a href="https://www.techtarget.com/searchcustomerexperience/tip/Best-practices-for-a-sustainable-marketing-strategy">sustainable marketing strategy</a>:</p> <ol class="default-list"> <li><b>Customer-focused marketing.</b> A sustainable marketing strategy begins with a deep understanding of the target audience's values, aspirations and concerns. Brands should align their messaging with what matters most to their customers, whether it's climate action, <a href="https://www.techtarget.com/sustainability/feature/How-ethical-sourcing-can-improve-supply-chains%20">ethical sourcing</a> or social equity. By prioritizing empathy-driven communication, companies can build trust, relevance and long-term loyalty.</li> <li><b>Purpose-driven branding.</b> Organizations should strive for more than just profit and clearly communicate their brand's mission to their audience. Purpose-driven marketing connects a business to a larger cause, fostering engagement and loyalty. When customers recognize a brand's commitment to meaningful change, they're likely to support and advocate for it.</li> <li><b>Transparency and accountability.</b> Sustainable brands build trust by openly sharing their practices, goals and progress. This typically includes disclosing their sourcing methods, environmental impact and ethical labor standards. By acknowledging their achievements and areas for improvement, companies demonstrate integrity and invite stakeholders into a genuine dialogue, strengthening their credibility and fostering long-term relationships.</li> <li><strong>Societal marketing.</strong> Sustainable brands address broader societal challenges through their marketing efforts. This includes promoting awareness, education and action around issues such as climate change, inequality and resource conservation. By positioning the brand as a catalyst for change, not merely a seller of goods, companies contribute to meaningful progress and inspire collective responsibility.</li> <li><strong>Authenticity and transparency.</strong> Sustainable brands avoid practices such as greenwashing and <a href="https://www.techtarget.com/whatis/feature/What-is-greenhushing-Everything-you-need-to-know">greenhushing</a> by being honest about their sustainability efforts as well as their setbacks. Transparency builds credibility, and authenticity fosters meaningful relationships with stakeholders. By celebrating progress, acknowledging challenges and consistently communicating with integrity, companies reinforce trust and long-term engagement.</li> </ol> </section> <section class="section main-article-chapter" data-menu-title="Real-life examples of sustainable marketing campaigns"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Real-life examples of sustainable marketing campaigns</h2> <p>The following examples of sustainable marketing campaigns illustrate how brands have effectively aligned purpose, awareness and action to drive meaningful impact.</p> <h3>Patagonia's Don't Buy This Jacket</h3> <p>On Black Friday in 2011, Patagonia ran a bold full-page ad in <i>The New York Times</i> featuring one of its jackets under the headline: "Don't Buy This Jacket." The message challenged traditional consumerism by highlighting the environmental cost of producing the garment and urging customers to repair, reuse and recycle rather than buy new.</p> <p>While the campaign resulted in a 30% increase in sales, its primary aim was to challenge consumer habits and encourage more sustainable choices. The message aligned with Patagonia's long-standing environmental values and resonated with its audience, reinforcing trust and credibility without relying on traditional promotional strategies.</p> <h3>IKEA's Buy Back and Resell</h3> <p>As part of its goal to become a circular and climate-positive business by 2030, IKEA launched the Buy Back and Resell program. The initiative enables customers to return gently used IKEA furniture in exchange for store credit. These items are then resold in a dedicated As-Is section at reduced prices, helping to keep furniture out of landfills and in use longer.</p> <p>The program addresses a significant issue of disposal and overconsumption in the furniture industry. By offering a practical way for customers to participate in reuse, IKEA integrates sustainability into its retail operations and encourages more responsible consumption habits.</p> <h3>Lush Cosmetics' Naked Packaging</h3> <p>Lush is famous for its naked products, such as shampoo bars, bath bombs and soaps that are sold without any plastic packaging. Their marketing highlights the brand's commitment to reducing plastic waste and its use of natural and ethically sourced ingredients.</p> <p>Lush's sustainable marketing is built into their product and retail experience. By offering a unique shopping experience and a clear, visual commitment to sustainability, the chain attracts a customer base that values eco-conscious choices. Both in-store and online, Lush reinforces its values through content that promotes the benefits of natural ingredients and zero-waste living.</p> <h3>Lacost's Save Our Species</h3> <p>For a limited time, Lacoste replaced its iconic crocodile logo on polo shirts with ten different endangered species. The number of shirts produced for each species matched the number of animals remaining in the wild. Proceeds from the limited-edition collection were donated to the International Union for Conservation of Nature to support conservation efforts.</p> <p>This campaign creatively used one of the brand's most recognizable assets -- its logo -- to raise awareness for a powerful cause. By replacing the crocodile emblem with endangered species, the campaign drew attention to biodiversity loss and encouraged public engagement with conservation issues. The limited production run reflected the urgency of the cause and helped connect consumer behavior with environmental awareness.</p> <h3>Levi's Buy Better, Wear Longer</h3> <p>Launched in 2021, Levi's Buy Better, Wear Longer campaign promotes urged consumers to make more intentional choices, such as investing in durable clothing, buying secondhand and using Levi's in-store Tailor Shops to extend the life of their garments. The campaign conveys a message of longevity, suggesting that Levi's denim is designed to last for generations, not just seasons.</p> <p>The campaign aligns with Levi's broader sustainability efforts, including reducing water use and <a href="https://www.techtarget.com/searcherp/feature/The-supply-chain-sustainability-software-market-demystified">improving supply chain practices</a>. The company backs its message with action by investing in materials such as cottonized hemp and organic cotton, and scaling its Water&lt;Less® manufacturing process to reduce water use.</p> </section> <section class="section main-article-chapter" data-menu-title="The thin line between greenwashing and sustainable marketing"> <h2 class="section-title"><i class="icon" data-icon="1"></i>The thin line between greenwashing and sustainable marketing</h2> <p>The line between greenwashing and sustainable marketing is thin, but the distinction is critical for building a trustworthy brand and a genuinely responsible business. At its core, the difference between the two lies in substance versus claim.</p> <h3>Greenwashing</h3> <p>Greenwashing is the deceptive practice of making a brand appear more environmentally or socially responsible than it is. It's marketing that prioritizes a green image over a genuine commitment to sustainability. Companies that greenwash often do so to capitalize on the growing consumer demand for eco-friendly products without making real changes to their operations.</p> <p>The following are the key characteristics of greenwashing:</p> <ul class="default-list"> <li><b>Vague and unsubstantiated claims. </b>Greenwashing often uses ambiguous terms, such as <i>eco-friendly</i>, <i>natural</i> and <i>green</i> without providing evidence or data to back them up. For example, a company might use green packaging and imagery of nature without actually having a sustainable supply chain.</li> <li><b>Irrelevant or misleading information. </b>Greenwashing typically highlights a small, single eco-friendly aspect of a product while ignoring a much larger, negative environmental impact. For instance, a car manufacturer might promote the fuel efficiency of a single model while its overall production process is highly polluting.</li> <li><b>Hidden trade-offs. </b>Greenwashing often highlights one environmentally friendly aspect of a product while downplaying or ignoring other unsustainable practices. For example, a company might advertise its use of recycled materials but still produce its goods using nonrenewable energy and a wasteful manufacturing process.</li> <li><b>Fake certifications or logos.</b> Some companies use fake logos or misleading symbols to suggest third-party endorsement or compliance with environmental standards. This tactic exploits consumer trust in regulatory oversight and can make it difficult to distinguish between genuinely certified products and those using deceptive visuals.</li> <li><b>Exaggerated or false claims.</b> Greenwashing can involve outright lying about a product's environmental benefits, such as claiming a product is 100% recyclable when a large portion of it isn't or asserting carbon neutrality without credible offsets or emissions data. Such misleading statements distort consumer perception and erode trust in sustainability efforts, making it harder for customers to make informed and responsible choices.</li> </ul> <div class="youtube-iframe-container"> <iframe id="ytplayer-0" src="https://www.youtube.com/embed/99SF9o0TkGQ?si=ul9xOJesqOC4vBYb?autoplay=0&amp;modestbranding=1&amp;rel=0&amp;widget_referrer=null&amp;enablejsapi=1&amp;origin=https://www.techtarget.com" type="text/html" height="360" width="640" frameborder="0"></iframe> </div> <h3>Sustainable marketing</h3> <p>Sustainable marketing is an authentic and transparent practice where a company's marketing efforts are a true reflection of its genuine commitment to sustainability. It's not about making a brand look good, but it's about communicating real and verifiable progress.</p> <p>The following are the key characteristics of sustainable marketing:</p> <ul class="default-list"> <li><b>Radical transparency. </b>Being open about both successes and failures, a truly sustainable brand shares its sustainability reports, discloses its <a href="https://www.techtarget.com/whatis/definition/carbon-footprint">carbon footprint</a> and is honest about the challenges it faces.</li> <li><b>Substantiated and specific claims.</b> Sustainable marketing backs up all claims with clear and measurable data. Instead of saying <i>eco-friendly</i>, a brand might say <i>made with 100% recycled cotton</i> and provide details on its certifications, such as the Global Organic Textile Standard or Fair Trade.</li> <li><b>Holistic approach.</b> Sustainable marketing integrates sustainability into every aspect of the business, from the supply chain and product design to employee well-being and community engagement.</li> <li><b>Third-party validation.</b> Companies practicing sustainable marketing seek and display certifications from reputable third-party organizations such as B Corp, Fair Trade and the Forest Stewardship Council (FSC). These certifications serve as independent proof of a company's commitment.</li> <li><b>Education and empowerment. </b>Companies that adopt sustainable marketing, educate consumers and empower them to make better choices, rather than just using green language to drive sales. This could involve campaigns that promote repairing products, recycling or reducing consumption.</li> </ul> <p>Sometimes, even companies with genuine intent can unintentionally greenwash when they fail to meet their stated sustainability goals, rely on vague or imprecise messaging, or use eco-themed visuals without substantive action behind them.</p> <p>One way to distinguish greenwashing from authentic sustainable marketing is to consider whether a company invests more in promoting its sustainability efforts than in implementing them. If promotional efforts outweigh tangible progress, the messaging may be misleading. In contrast, when a brand's actions are measurable and its communications transparently reflect real outcomes, it indicates a more credible and committed approach to sustainability.</p> </section> <section class="section main-article-chapter" data-menu-title="How to avoid greenwashing in sustainable marketing"> <h2 class="section-title"><i class="icon" data-icon="1"></i>How to avoid greenwashing in sustainable marketing</h2> <p>Product sustainability is increasingly important to consumers, making it essential for brands to avoid greenwashing. According to TheRoundup.org, <a href="https://theroundup.org/environmentally-conscious-consumer-statistics/" target="_blank" rel="noopener">78% of consumers</a> consider sustainability a key factor in their purchasing decisions.</p> <p>The following are some <a href="https://www.techtarget.com/searchcustomerexperience/tip/Examples-of-sustainable-marketing">examples of sustainable marketing</a> and how companies can avoid greenwashing to build genuine credibility:</p> <ol class="default-list"> <li><b>Be specific and measurable.</b> Organizations should avoid vague terms such as <i>eco-friendly</i> and <i>green</i>. Instead, they should use concrete, quantifiable claims, such as "We reduced carbon emissions by 20% last year by switching to renewable energy." Clear, data-driven statements enhance credibility and build trust with stakeholders.</li> <li><b>Use third-party certifications and independent audits. </b>Organizations should obtain credible certifications such as B Corp, FSC and Fair Trade, and prioritize verifiable, externally audited claims. Highlighting these certifications helps build trust and demonstrate accountability to stakeholders.</li> <li><b>Ensure consistency across operations.</b> Sustainability should be embedded across the organization and not limited to a single product line or campaign. Highlighting one green initiative while overlooking broader environmental impacts is a common indicator of greenwashing.</li> <li><b>Partner with charities.</b> Partnering with charities can help organizations avoid greenwashing if the collaboration is authentic, aligned with their sustainability values and transparently communicated. When the brand's actions reflect the values of the charity, the partnership becomes a credible signal of true commitment and not just a marketing tactic.</li> <li><b>Provide purpose-driven sustainability.</b> To avoid greenwashing, companies must communicate the purpose behind their sustainability initiatives. Simply listing actions isn't enough, as most stakeholders want to understand a company's deeper motivation. This means connecting sustainability efforts to broader goals, such as climate action, social equity or long-term business resilience. When organizations transparently articulate their motivations, they build trust and stronger emotional connections with their audience.</li> <li><b>Make sustainability efforts measurable.</b> To ensure credibility, organizations must set measurable sustainability goals, such as reducing emissions or increasing renewable energy use, and track progress through clear <a href="https://www.techtarget.com/searchbusinessanalytics/definition/key-performance-indicators-KPIs">key performance indicators</a>. These metrics provide a roadmap for action, enable accountability and move sustainability beyond aspirational statements.</li> <li><b>Be honest about limitations.</b> Transparency includes acknowledging areas for improvement. Consumers appreciate honesty and are more likely to trust brands that share their progress and challenges.</li> <li><b>Align with ESG standards.</b> Organizations should integrate the ESG principles into their sustainable marketing strategy. This ensures that their sustainability efforts are not just marketing-driven but embedded in corporate responsibility.</li> <li><b>Educate your team and collaborate with experts.</b> To avoid greenwashing, organizations should train internal teams on accurate sustainability communication. They should also engage environmental consultants or academic experts to validate claims and ensure their messaging is aligned with evolving standards and regulations.</li> </ol> <p><i>Greenwashing can damage customer trust and a brand's reputation. Discover </i><a href="https://www.techtarget.com/searchcustomerexperience/tip/How-to-avoid-greenwashing-as-a-marketer"><i>how marketers can avoid greenwashing</i></a><i> and provide clear evidence to support their claims.</i></p> </section> Sustainable marketing is a purpose-driven strategy that promotes products, services and brand values aligned with long-term environmental, social and economic well-being. https://cdn.ttgtmedia.com/visuals/digdeeper/2.jpg https://www.techtarget.com/sustainability/definition/What-is-sustainable-marketing Wed, 03 Sep 2025 14:35:00 GMT <p>Product analytics is the process of gathering and transforming user-level data into insights that reveal how customers interact with specific products. It enables organizations to track and analyze user behavior throughout their journey, from first interaction to repeat <a href="https://www.techtarget.com/searchcustomerexperience/definition/customer-engagement">engagement</a>, to understand what drives <a href="https://www.techtarget.com/searchcustomerexperience/definition/customer-retention">retention</a>, conversion and long-term value.</p> <p>Usage data collected through product analytics often includes information such as the most frequently used features, session duration, interaction sequences and return frequency -- all presented in daily, weekly or monthly intervals. This behavioral intelligence enables product teams to refine user experiences (<a href="https://www.techtarget.com/searchcio/definition/UX-user-experience">UX</a>), prioritize feature development and align with customer needs.</p> <p>While product analytics is most commonly used by software as a service (<a href="https://www.techtarget.com/searchcloudcomputing/definition/Software-as-a-Service">SaaS</a>) and mobile app companies, it is increasingly important for <a href="https://www.techtarget.com/searchcio/definition/e-commerce">e-commerce</a>, fintech, healthtech and other digital-first businesses. Teams that include product managers, designers, engineers, growth marketers and UX researchers rely on product analytics to make evidence-based decisions.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineImages/salesforce-customer_journey_map.jpg"> <img data-src="https://www.techtarget.com/rms/onlineImages/salesforce-customer_journey_map_mobile.jpg" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineImages/salesforce-customer_journey_map_mobile.jpg 960w,https://www.techtarget.com/rms/onlineImages/salesforce-customer_journey_map.jpg 1280w" alt="The four stages of a customer journey graphic." height="333" width="520"> <figcaption> <i class="icon pictures" data-icon="z"></i>During a product analytics process, it's important to understand a customer's experience, particularly the user's journey from research to comparison shopping to their ultimate purchase. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <section class="section main-article-chapter" data-menu-title="Importance of product analytics"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Importance of product analytics</h2> <p>Product analytics delivers objective data on what users actually do, as opposed to what they claim in surveys or interviews. This distinction helps product teams to do the following:</p> <ul class="default-list"> <li>Validate product-market fit.</li> <li>Identify usage bottlenecks and abandonment points.</li> <li>Prioritize improvements based on actual user behavior.</li> <li>Personalize features or experiences for different segments.</li> </ul> <p>Unlike <a href="https://www.techtarget.com/searchcio/definition/qualitative-data">qualitative</a> feedback, product analytics offers large-scale, real-time visibility into user actions, to help teams identify high-value patterns and optimize for measurable outcomes like retention, engagement and revenue.</p> <p>Product analytics also plays a vital role in launching new features. Using the analytic data, teams can do the following:</p> <ul class="default-list"> <li>Benchmark usage expectations.</li> <li>Monitor engagement over time.</li> <li>Conduct A/B tests to compare variants.</li> <li>Iterate based on quantitative evidence.</li> </ul> <p>In a highly competitive environment, companies such as Netflix, Uber, Amazon and Spotify use product analytics as a cornerstone of their product strategy.</p> </section> <section class="section main-article-chapter" data-menu-title="How to implement product analytics"> <h2 class="section-title"><i class="icon" data-icon="1"></i>How to implement product analytics</h2> <p>Implementing product analytics involves several foundational steps:</p> <ol type="1" start="1" class="default-list"> <li><b>Determine readiness.</b> Product analytics is most effective when a product has achieved some baseline adoption. For early stage products with small user bases, qualitative research methods might offer more <a href="https://www.techtarget.com/searchcustomerexperience/definition/actionable-insights">actionable insights</a>.</li> <li><b>Align analytics with business goals.</b> Define measurable objectives, such as increasing feature adoption, improving onboarding or reducing <a href="https://www.techtarget.com/searchcustomerexperience/definition/customer-churn-customer-attrition">churn</a>.</li> <li><b>Create a tracking plan.</b> Events are the building blocks of product analytics. Each event represents a user action (e.g., button click, form submission, purchase). A solid tracking plan should map out the following:</li> </ol> <ol type="1" start="4" class="default-list"> <li style="list-style: none;"> <ul class="default-list"> <li>Key events and event properties to collect.</li> <li>User and account-level attributes.</li> <li>Desired funnel paths and usage flows.</li> </ul> </li> <li><b>Choose the right tools.</b> Product analytics tools offer varying levels of flexibility, <a href="https://www.techtarget.com/searchcustomerexperience/definition/market-segmentation">segmentation</a>, <a href="https://www.techtarget.com/searchbusinessanalytics/definition/data-visualization">visualization</a> and <a href="https://www.techtarget.com/searchcustomerexperience/definition/integration">integration</a>. Many teams also combine product analytics with a customer data platform (<a href="https://www.techtarget.com/searchcustomerexperience/definition/customer-data-platform">CDP</a>) like Twilio Segment or RudderStack.</li> <li><b>Instrument the product.</b> Integrate analytics <a href="https://www.techtarget.com/whatis/definition/software-developers-kit-SDK">SDKs</a> into your app or website to capture the defined events. Proper <a href="https://www.techtarget.com/searchsoftwarequality/definition/quality-assurance">QA</a> ensures accuracy and data integrity.</li> </ol> </section> <section class="section main-article-chapter" data-menu-title="How to use product analytics"> <h2 class="section-title"><i class="icon" data-icon="1"></i>How to use product analytics</h2> <p>Once the system is in place, teams use product analytics as follows:</p> <ul class="default-list"> <li><b>Visualize </b><a href="https://www.techtarget.com/searchcustomerexperience/definition/sales-funnel"><b>funnels</b></a><b>. </b>Identify where users drop off during key flows, such as onboarding or checkout.</li> <li><b>Measure retention and engagement. </b>Track how often users return and how they interact over time.</li> <li><b>Segment users.</b> Analyze behavior by cohort (e.g., trial versus paid users, geographies or acquisition channels).</li> <li><b>Identify friction points.</b> Spot features or workflows where users abandon or fail to complete desired actions.</li> <li><b>Optimize experiments.</b> Use A/B testing tools to validate hypotheses and iterate quickly.</li> </ul> <p>Examples of product analytics in action include the following:</p> <ul class="default-list"> <li>A fintech app reduces support tickets by tracking failed login attempts and improving the password recovery UX.</li> <li>An e-commerce company boosts conversions by identifying which product filters lead to the most purchases.</li> <li>A SaaS platform increases retention by sending targeted in-app messages based on inactivity.</li> </ul> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/key_ways_to_measure_customer_engagement-f.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/key_ways_to_measure_customer_engagement-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/key_ways_to_measure_customer_engagement-f_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/key_ways_to_measure_customer_engagement-f.png 1280w" alt="Key ways to measure customer engagement graphic." height="269" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>Product analytics can track many of the metrics that are commonly used to gauge customer engagement. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> </section> <section class="section main-article-chapter" data-menu-title="Product analytics tools"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Product analytics tools</h2> <p>The right product analytics tool depends on your company's size, data maturity and tech <a href="https://www.techtarget.com/searchapparchitecture/definition/software-stack">stack</a>. Popular product analytics tools include the following:</p> <ul class="default-list"> <li><b>Google Analytics 4 (GA4). </b>Free and widely used, GA4 features event-based tracking and integration with Google Ads.</li> <li><b>Mixpanel.</b> This tool focuses on product event tracking, cohort analysis and funnel visualization.</li> <li><b>Amplitude. </b>Amplitude offers advanced <a href="https://www.techtarget.com/searchsecurity/definition/user-behavior-analytics-UBA">behavioral analytics</a>, experimentation and predictive analytics.</li> <li><b>Heap.</b> This app automatically captures user interactions (no code tagging required).</li> <li><b>PostHog. </b>This <a href="https://www.techtarget.com/whatis/definition/open-source">open source</a> analytics app provides session recording and feature flags.</li> <li><b>Twilio Segment.</b> Segment is a CDP that routes user data to analytics, <a href="https://www.techtarget.com/searchcustomerexperience/definition/CRM-customer-relationship-management">CRM</a>, marketing and other tools.</li> </ul> <p>Key features to look for include the following:</p> <ul class="default-list"> <li>Real-time <a href="https://www.techtarget.com/searchcio/definition/executive-dashboard">dashboards</a>.</li> <li>Funnel and retention analysis.</li> <li>Segmentation and cohorts.</li> <li>A/B testing capabilities.</li> <li>Role-based access and <a href="https://www.techtarget.com/searchdatamanagement/definition/data-governance">data governance</a>.</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="Product analytics vs. marketing analytics"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Product analytics vs. marketing analytics</h2> <p>Although complementary, product analytics and marketing analytics serve different purposes:</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/product_vs_marketing_analytics-f.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/product_vs_marketing_analytics-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/product_vs_marketing_analytics-f_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/product_vs_marketing_analytics-f.png 1280w" alt="Product versus marketing analytics table image." height="258" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>Product analytics continues from where marketing analytics concludes. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <p>Product analytics supports full-funnel optimization by picking up where marketing analytics leaves off by tracking behavior after users arrive.</p> <div class="youtube-iframe-container"> <iframe id="ytplayer-0" src="https://www.youtube.com/embed/lqaO53DJsYk?autoplay=0&amp;modestbranding=1&amp;rel=0&amp;widget_referrer=null&amp;enablejsapi=1&amp;origin=https://www.techtarget.com" type="text/html" height="360" width="640" frameborder="0"></iframe> </div> </section> <section class="section main-article-chapter" data-menu-title="Privacy and compliance in product analytics"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Privacy and compliance in product analytics</h2> <p>With data privacy regulations like <a href="https://www.techtarget.com/whatis/definition/General-Data-Protection-Regulation-GDPR">GDPR</a>, <a href="https://www.techtarget.com/searchcio/definition/California-Consumer-Privacy-Act-CCPA">CCPA</a> and <a href="https://www.techtarget.com/searchhealthit/definition/HIPAA">HIPAA</a> expanding, companies must ensure product analytics practices align with legal standards.</p> <p>Key compliance considerations include the following:</p> <ul class="default-list"> <li>Minimizing use of personally identifiable information (<a href="https://www.techtarget.com/searchsecurity/definition/personally-identifiable-information-PII">PII</a>).</li> <li>Offering opt-outs or <a href="https://www.techtarget.com/searchsoftwarequality/definition/cookie">cookie</a> consent mechanisms.</li> <li>Storing data securely and limiting access.</li> <li>Maintaining clear <a href="https://www.techtarget.com/searchdatabackup/definition/data-retention-policy">data retention policies</a>.</li> </ul> <p>Some analytics tools provide anonymization features and server-side tracking to help reduce compliance risks. Businesses operating in sensitive industries such as finance or healthcare must choose tools that meet stricter security and privacy benchmarks.</p> </section> <section class="section main-article-chapter" data-menu-title="Common product analytics mistakes to avoid"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Common product analytics mistakes to avoid</h2> <p>Many teams underuse or misuse product analytics, which can lead to wasted resources or misleading conclusions. Common pitfalls are as follows:</p> <ul class="default-list"> <li><b>Tracking too many events.</b> Without focus, dashboards become noisy and insights unclear.</li> <li><b>Not aligning tracking to goals.</b> Data without business context leads to irrelevant conclusions.</li> <li><b>Skipping QA.</b> Poor event instrumentation leads to inaccurate or missing data.</li> <li><b>Ignoring qualitative input.</b> Combining product analytics with user interviews, surveys or session recordings gives better context.</li> <li><b>Overlooking privacy risks.</b> Collecting too much PII can result in regulatory violations.</li> </ul> <p>Start small, track only what matters and build analytics maturity over time.</p> <p><i>Learn how organizations&nbsp;</i><a href="https://www.techtarget.com/searchcustomerexperience/tip/How-to-collect-customer-feedback"><i>collect customer feedback</i></a><i>&nbsp;to improve their experiences.</i></p> </section> Product analytics is the process of gathering and transforming user-level data into insights that reveal how customers interact with specific products. https://cdn.ttgtmedia.com/visuals/digdeeper/2.jpg https://www.techtarget.com/whatis/definition/product-analytics Wed, 27 Aug 2025 14:40:00 GMT <p>An ISV (independent software vendor) makes and sells software products that work with computer hardware, operating systems (<a href="https://www.techtarget.com/whatis/definition/operating-system-OS">OSes</a>) or software <a href="https://www.techtarget.com/searchitoperations/definition/platform">platforms</a> made by another company.</p> <p>An ISV's products are often sold and <a href="https://www.techtarget.com/searchcio/definition/software-license">licensed</a> separately from the underlying programs. They can be offered as perpetual licenses, limited-term licenses or even fully managed software as a service (<a href="https://www.techtarget.com/searchcloudcomputing/definition/Software-as-a-Service">SaaS</a>).</p> <p>ISVs typically provide software in conjunction with the hardware, software or cloud platform provider as a package or from an official app store. In the case of hardware, an ISV producer builds software to run on a particular vendor's hardware platform and the OSes the platform supports. An ISV may also incorporate software from a software platform provider into its offering by embedding <a href="https://www.techtarget.com/searchdatamanagement/definition/database">database</a> technology from Microsoft or Oracle, for example.</p> <p>As the <a href="https://www.techtarget.com/searchcloudcomputing/definition/cloud-computing">cloud computing</a> model has grown more pervasive, ISVs have increasingly targeted the cloud as a vehicle for delivering software by offering products on a SaaS basis. With this delivery method, an ISV may sell its software through a <a href="https://www.techtarget.com/searchcloudcomputing/definition/public-cloud">public cloud</a> or cloud marketplace. Examples include Amazon Web Services (<a href="https://www.techtarget.com/searchaws/definition/Amazon-Web-Services">AWS</a>) Marketplace, <a href="https://www.techtarget.com/searchcloudcomputing/definition/Microsoft-Azure-Marketplace">Microsoft Azure Marketplace</a> and Salesforce AppExchange.</p> <div class="youtube-iframe-container"> <iframe id="ytplayer-0" src="https://www.youtube.com/embed/pLsdKM57CP8?autoplay=0&amp;modestbranding=1&amp;rel=0&amp;widget_referrer=null&amp;enablejsapi=1&amp;origin=https://www.techtarget.com" type="text/html" height="360" width="640" frameborder="0"></iframe> </div> <p>Additionally, an independent software maker may provide the software in the form of virtual appliances that run on <a href="https://www.techtarget.com/searchitoperations/definition/virtual-machine-VM">virtual machines</a> or <a href="https://www.techtarget.com/searchitoperations/definition/container-containerization-or-container-based-virtualization">containers</a>.</p> <p>Typically, ISVs focus on a single market segment. Some have a general or horizontal focus with a broad market appeal, such as <a href="https://www.techtarget.com/searchcustomerexperience/definition/CRM-customer-relationship-management">customer relationship management</a> or <a href="https://www.techtarget.com/searcherp/definition/ERP-enterprise-resource-planning">enterprise resource planning</a>.</p> <p>Others target companies with a <a href="https://www.techtarget.com/searchitchannel/definition/vertical-market">vertical market</a> orientation -- an independent software producer targeting discrete manufacturing companies. There are also many ISVs providing highly specialized niche offerings, such as <a href="https://www.techtarget.com/searchstorage/definition/data-migration">data migration</a> utilities or plugins for specialized industry software.</p> <section class="section main-article-chapter" data-menu-title="Official ISV programs"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Official ISV programs</h2> <p>Companies that make the platforms, such as Apple, AWS, Hewlett Packard Enterprise (HPE), IBM, Microsoft, Oracle, Salesforce and others, are the original equipment manufacturers. The <a href="https://www.techtarget.com/searchitchannel/definition/OEM">OEM</a> often encourages and lends support to ISVs, sometimes through the use of ISV programs. In general, the more applications that run on a platform, the more value it offers to customers. Platform manufacturers, such as IBM and Microsoft, also make applications, but they don't have the resources or, in many cases, the special knowledge required to make applications for every conceivable vertical market or niche requirement. ISVs can fill the gaps in the services provided by the larger product offering.</p> <figure class="main-article-image half-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/it_channel-shadow_channel.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/it_channel-shadow_channel_half_column_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/it_channel-shadow_channel_half_column_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/it_channel-shadow_channel.png 1280w" alt="The shadow channel: Who are the players? list graphic" height="312" width="279"> <figcaption> <i class="icon pictures" data-icon="z"></i>ISVs are one component of the shadow channel, according to Jay McBain, chief analyst at Canalys. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <p>An ISV program generally offers a mix of technical and marketing support for a software maker. Specific benefits may include technology training, briefings on product development roadmaps, ISV-specific pricing and licensing terms, product discounts and comarketing initiatives. A platform provider may also offer ISV partners a seal of approval using software validation programs.</p> <p>At times, an ISV program may operate within a platform vendor's umbrella business <a href="https://www.techtarget.com/searchitchannel/definition/partner-program">partner program</a>. Such programs aim to cover a spectrum of partner relationships and interactions.</p> </section> <section class="section main-article-chapter" data-menu-title="What is the difference between ISVs and other providers?"> <h2 class="section-title"><i class="icon" data-icon="1"></i>What is the difference between ISVs and other providers?</h2> <p>ISVs make and sell software that is added to platforms. They create software that is used by another platform. OEMs make computer hardware that software made by an ISV runs on.</p> <p>Some OEMs bundle software from an ISV into their product. For example, Dell or HPE might make a server as an OEM, and Microsoft is the ISV to them to provide the Windows OS. Interestingly, another ISV, such as Adobe, might make software for Microsoft, itself an ISV, showing the complex web of dependencies that can occur among vendors and products.</p> <p><a href="https://www.techtarget.com/searchitchannel/definition/VAR">Value-added resellers</a> incorporate platform software into software product packages. They add additional training and configuration support. <a href="https://www.techtarget.com/searchitchannel/definition/systems-integrator">Systems integrators</a> go one step further. They might take products from several OEMs and ISVs and combine them into a single system sold as a unit. Managed service providers (<a href="https://www.techtarget.com/searchitchannel/definition/managed-service-provider">MSPs</a>) remotely monitor and manage hardware and software platforms installed at the customer's location and may also keep tabs on the public cloud platforms a customer uses.</p> <div class="youtube-iframe-container"> <iframe id="ytplayer-1" src="https://www.youtube.com/embed/WEqXH4PuF8c?autoplay=0&amp;modestbranding=1&amp;rel=0&amp;widget_referrer=null&amp;enablejsapi=1&amp;origin=https://www.techtarget.com" type="text/html" height="360" width="640" frameborder="0"></iframe> </div> </section> <section class="section main-article-chapter" data-menu-title="Blurring lines: Software products in the channel"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Blurring lines: Software products in the channel</h2> <p>One development in the ISV space is the convergence of the independent service provider business model with other IT channel business models, such as managed services and <a href="https://www.techtarget.com/searchcloudcomputing/definition/What-is-cloud-consulting-Everything-you-should-know">cloud consulting</a> services.</p> <p>As the MSP and cloud services markets become more crowded and competitive, companies are looking for new ways to differentiate their services. Some companies have turned to software development as a way to stand out from rivals. An MSP or cloud consultant that creates its own <a href="https://www.techtarget.com/whatis/definition/intellectual-property-IP">intellectual property</a> is less likely to become commoditized than a company that offers readily duplicated services, such as server management, or one that resells the same public cloud service that many other companies can supply.</p> <p>On the other hand, software development calls for skills that may be difficult for a <a href="https://www.techtarget.com/searchitchannel/definition/channel-partner">channel partner</a> to acquire and maintain.</p> </section> <section class="section main-article-chapter" data-menu-title="ISVs and traditional channel partners"> <h2 class="section-title"><i class="icon" data-icon="1"></i>ISVs and traditional channel partners</h2> <p>A vendor's channel partner base has traditionally comprised resellers of hardware, software and services. However, with the more recent growth of new channel business types, such as ISVs, the makeup of the IT channel is in flux. High-profile vendors are increasingly looking to incorporate more ISVs and other nontraditional partners into their <a href="https://www.techtarget.com/searchitchannel/definition/channel-strategy">channel strategies</a>.</p> <p>According to Jay McBain, chief analyst at Canalys, this emergent shadow channel includes ISVs, <a href="https://www.techtarget.com/searchcloudcomputing/definition/XaaS-anything-as-a-service">anything-as-a-service</a> consultants, industry-based professional services firms and born-in-the-cloud companies.</p> <p>The number of ISV businesses has seen significant growth. In 2018, McBain noted approximately 100,000 ISVs in play worldwide, compared to the roughly 10,000 ISV partners doing business in 2008. He forecasted that number would reach 1 million by 2027, fueled by the ability of ISVs to provide highly customized software to their clients. Mordor Intelligence, a marketing intelligence firm, <a href="https://www.mordorintelligence.com/industry-reports/independent-software-vendors-market" target="_blank" rel="noopener">estimated</a> that the ISV market is at $2.35 billion in 2025 and predicted it to grow to $5.5 billion by 2030.</p> </section> <section class="section main-article-chapter" data-menu-title="ISVs for AI"> <h2 class="section-title"><i class="icon" data-icon="1"></i>ISVs for AI</h2> <p>ISVs can take advantage of the rise of <a href="https://www.techtarget.com/searchenterpriseai/definition/generative-AI">generative AI</a> and <a href="https://www.techtarget.com/whatis/definition/large-language-model-LLM">large language models</a>. These forms of AI are powerful but are often quite siloed and limited in what they can accomplish; they require additional software to interact with outside resources and data.</p> <p>An ISV might provide a plugin or a software package that integrates another commercial AI application to expand its capabilities. For example, an ISV might make software that plugs a <a href="https://www.techtarget.com/searchcustomerexperience/definition/chatbot">chatbot</a> into a website's customer chat feature or makes a connector for a vision recognition software and a warehouse management platform.</p> <p><em>Discover key factors to <a href="https://www.techtarget.com/searchsecurity/opinion/What-to-consider-when-creating-a-SaaS-security-strategy">consider when crafting a SaaS security policy</a>. Look into attributes that focus on effective SaaS strategy, such as visibility, user experience and workflow, for enhanced protection.</em></p> </section> An ISV (independent software vendor) makes and sells software products that work with computer hardware, operating systems (OSes) or software platforms made by another company. https://cdn.ttgtmedia.com/visuals/digdeeper/5.jpg https://www.techtarget.com/searchitchannel/definition/ISV Wed, 27 Aug 2025 09:00:00 GMT <p>The explosive growth of cloud computing platforms and the preceding wave of virtualization have significantly altered the role of the server among SMBs and enterprises.</p> <p>Virtualization enabled organizations to load multiple virtual machines (VMs) on a single physical box, boosting hardware utilization and offering the ability to consolidate IT resources. Virtualization paved the way to the cloud, as IT managers could transfer VMs off-site to run on hyperscale providers, such as AWS, Google and Microsoft. Business-critical applications -- such as CRM, HR and ERP -- previously operating on in-house <a href="https://www.techtarget.com/whatis/definition/server">servers</a>, also journeyed to the cloud in the form of SaaS.</p> <p>That said, businesses of all sizes will continue to own and operate servers. Some organizations prefer to maintain in-house servers and private clouds for particularly sensitive workloads or applications that are too costly or difficult to migrate to a public cloud platform.</p> <p>Read on to learn more about the different types of servers, their evolving architectures and what IT buyers should look for regarding key requirements.</p> <section class="section main-article-chapter" data-menu-title="Types of server hardware"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Types of server hardware</h2> <p>The mainframes of the 1950s and 1960s can be considered the original servers, but the <a href="https://www.techtarget.com/searchdatacenter/feature/Dive-into-the-history-of-server-hardware">history of servers</a> in the modern sense starts in the 1980s with the invention of x86 servers running OSes, such as Novell NetWare or Banyan Vines. Today, servers come in a range of form factors and offer varying capabilities, finding a home in small businesses, large enterprises and everything in between.</p> <p>The following is a rundown of some of the <a href="https://www.techtarget.com/searchdatacenter/feature/Learn-the-major-types-of-server-hardware-and-their-pros-and-cons">prevalent types of server hardware</a>:</p> <ul class="default-list"> <li><b>Tower servers.</b> A tower server resides in an upright, standalone case, resembling a tower-style PC. These servers provide the benefit of easier cooling because they offer a relatively low component density. They are also comparatively inexpensive, making them an option for smaller businesses on a limited budget. Many small businesses favor tower servers because they do not require a rack, making them relatively easy to deploy. However, tower servers take up more space than other server types.</li> <li><b>Rack servers.</b> A rack server is designed to be mounted on a server rack in a data center. Rack servers often play an all-around computing role in the data center, supporting a multitude of workloads. These servers take up less space than a tower server. Rack servers and server racks are built to consistent size standards so that servers from multiple vendors can be stacked together. Standardization also makes adding new servers or replacing old ones a straightforward <a href="https://www.techtarget.com/whatis/feature/The-most-important-skills-a-server-engineer-needs">task for engineers</a>. Cable management, however, can prove a challenge when maintaining rack servers, which are tethered to power supplies, networking equipment and storage devices. Additionally, rack servers can be loud due to their high-speed fans and close proximity to one another.</li> </ul> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineImages/Getty-498127281_PixHouse-f.png"> <img data-src="https://www.techtarget.com/rms/onlineImages/Getty-498127281_PixHouse-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineImages/Getty-498127281_PixHouse-f_mobile.png 960w,https://www.techtarget.com/rms/onlineImages/Getty-498127281_PixHouse-f.png 1280w" alt="A rack server in a metal frame." data-credit="PIXHOUSE/GETTY IMAGES" height="316" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>A rack server is designed to fit into a standard-size metal frame. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <ul class="default-list"> <li><b>Blade servers.</b> A <a href="https://www.techtarget.com/searchdatacenter/definition/blade-server">blade server</a> is a compact server designed to fit into a blade chassis. Blade chassis are designed to accommodate multiple blade servers, each dedicated to running a specific application. The chassis provides power, cooling and networking to the individual blades. Blade servers are a great option for those who require high-density computing. However, their specialized infrastructure and high initial cost make them less attractive to smaller businesses.</li> </ul> <figure class="main-article-image half-col" data-img-fullsize="https://www.techtarget.com/rms/onlineImages/Getty-456074923_halbergman-h.jpg"> <img data-src="https://www.techtarget.com/rms/onlineImages/Getty-456074923_halbergman-h_half_column_mobile.jpg" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineImages/Getty-456074923_halbergman-h_half_column_mobile.jpg 960w,https://www.techtarget.com/rms/onlineImages/Getty-456074923_halbergman-h.jpg 1280w" alt="Blade servers in separate modules." data-credit="HALBERGMAN/GETTY IMAGES" height="222" width="280"> <figcaption> <i class="icon pictures" data-icon="z"></i>A blade server segregates processors, memory, I/O, disk, power and other components into separate modules. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <p>Blade servers offer greater processing density than other server types, providing a potential price and performance advantage. Blade server systems are simpler to repair than rack servers due to their hot-swappable, modular components. On the downside, blade servers have historically been built on proprietary architectures, making vendor lock-in a possible pitfall for buyers.</p> <ul class="default-list"> <li><b>Hyperconverged infrastructure.</b> HCI systems aim to provide a simpler alternative to traditional IT infrastructure, combining compute, storage and networking technology in an integrated system. With a typical <a href="https://www.techtarget.com/searchdatacenter/opinion/A-look-at-hyper-convergence-vs-traditional-server-deployments">hyperconvergence offering</a>, a midlevel data center engineer should be able to complete the tasks of initial hardware configuration, hypervisor deployment and software-defined storage implementation in about an hour. Vendors' products offer setup wizards to simplify the initial deployment process.</li> <li><b>Mainframes.</b> The rise of client-server architectures in the 1990s was forecast to obliterate mainframes, but those high-end servers continue to exist. Today's mainframes offer the ability to support large volumes of simultaneous transactions and heavy I/O loads without taking a performance hit. Financial services firms conducting concurrent, real-time transactions are among the typical mainframe customers. The primary drawbacks to mainframes are their size, price tag and the specialized skill set they require.</li> </ul> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/blade_server_vs_rack_server_vs_tower_server-f.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/blade_server_vs_rack_server_vs_tower_server-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/blade_server_vs_rack_server_vs_tower_server-f_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/blade_server_vs_rack_server_vs_tower_server-f.png 1280w" alt="Table comparing blade server vs. rack server vs. tower server features." height="252" width="560"> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> </section> <section class="section main-article-chapter" data-menu-title="Server hardware architecture"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Server hardware architecture</h2> <p>Like a PC, the key components of <a href="https://www.techtarget.com/searchdatacenter/feature/Drill-down-to-basics-with-these-server-hardware-terms">server hardware</a> architecture include the motherboard, processor, RAM and storage.</p> <p>The motherboard resides at the heart of the server, providing the central nexus through which system components are interconnected and external devices are attached. Advanced Technology Extended (ATX) is for tower servers or entry-level servers; extended ATX, or EATX, is often used in midlevel servers. Rackmount and enterprise-grade servers often use Server System Infrastructure Compact Electronics Bay or Enterprise Electronics Bay motherboards.</p> <p>The processor, or central processing unit (CPU), resides on the motherboard. CPU components include the arithmetic logic unit, floating point unit, registers and cache memory. A server might also contain one or more graphics processing units (GPUs), which can support applications such as machine learning and simulations. Tensor processing units and neural processing units offer additional levels of processor specialization.</p> <p>RAM modules also plug into the motherboard, serving as the system's main memory. RAM holds the OS, applications and in-use data for fast access by the processor. As for storage, a server might use a hard disk drive (HDD), a solid-state drive (SSD) or a mixture of the two.</p> <p>A server's form factor influences its role. An enterprise data center, for example, will usually choose rackmount servers because they take up less space, enabling higher-density deployments.</p> <p>An organization seeking to run a heterogeneous data center might choose rack servers for a different reason. Rack servers adhere to standard form factors, meaning multiple vendors' products can be installed within a rack. They also offer a range of power connections and network cabling choices. Large rack servers enable extensibility, accommodating additional processors, memory and local storage disks.</p> <p>Blade servers, meanwhile, are geared toward single-vendor IT settings that seek to unite compute, storage and networking within a single system. This approach offers the benefits of faster deployment and simplified management.</p> <p>Other trends in server architecture include disaggregation and composable infrastructure, which can be viewed as a continuation of converged infrastructure. <a href="https://www.techtarget.com/searchitoperations/definition/composable-infrastructure">Composable infrastructure</a> uses software-defined methods to logically pool computer, storage and network fabric resources in a data center. Those resources become the basis for shared services, which admins can draw upon to compose compute instances on the fly.</p> <div class="youtube-iframe-container"> <iframe id="ytplayer-0" src="https://www.youtube.com/embed/kx8K0xjUJVo?autoplay=0&amp;modestbranding=1&amp;rel=0&amp;widget_referrer=null&amp;enablejsapi=1&amp;origin=https://www.techtarget.com" type="text/html" height="360" width="640" frameborder="0"></iframe> </div> </section> <section class="section main-article-chapter" data-menu-title="Requirements"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Requirements</h2> <p>IT buyers in the server market must consider various factors when evaluating hardware vendor offerings, bearing in mind their current and future workload needs. An organization's requirements vary but revolve around the same <a href="https://www.techtarget.com/searchdatacenter/feature/Buy-server-hardware-with-these-key-functions-in-mind">server hardware features</a>: CPU, memory, storage and connectivity.</p> <h3>CPU</h3> <p>The CPU is a fundamental component to review, given its role in running programs and manipulating data. Some servers run multiple processors, typically with one processor per socket. Others use a single processor consisting of multiple cores to support multiprocessing.</p> <p>Buyers should consider the number of cores available on a processor, CPU clock speed, the available cache and the number of sockets. CPUs also offer varying performance levels, even if they have the same number of cores. Intel Xeon processors, for example, are categorized as Bronze, Silver, Gold and Platinum. These CPU classifications vary in terms of both price and performance.</p> <p>Vendors offer a range of product options, so the IT buyer's job becomes <a href="https://www.techtarget.com/searchdatacenter/answer/How-should-I-spec-our-new-server-hardware-configuration">finding the server hardware configuration</a> that best fits a particular environment. Organizations running cloud infrastructure in a data center, for example, can perform a variety of general-purpose computing tasks on a 1 rack unit (1U) dual-CPU server or even a 0.5U single-CPU server. The relatively small 1U server might prove a good option since it can readily accommodate 16 cores with normal data center cooling approaches. This server category also provides some flexibility regarding storage drives and connections.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineImages/data_center-shopping_for_a_server-f.png"> <img data-src="https://www.techtarget.com/rms/onlineImages/data_center-shopping_for_a_server-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineImages/data_center-shopping_for_a_server-f_mobile.png 960w,https://www.techtarget.com/rms/onlineImages/data_center-shopping_for_a_server-f.png 1280w" alt="Table listing factors to consider when shopping for a server, covering the form factor, system resources and server operations categories and associated subcategories." height="520" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>Admins should consider form factors, system resources and server operations before making any purchasing decisions. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <h3>Memory</h3> <p>Server memory is critical for maximizing a system's performance. Memory modules differ in speed, with faster memory delivering better performance. More available memory enhances the workload performance as well. IT buyers should also consider server features that bolster reliability, such as fault-tolerant capabilities and error-correcting code.</p> <h3>Storage</h3> <p>A server's storage requirements depend on the intended applications and workloads. For example, a database server will have different needs than one running a web application. An IT buyer must examine server technology to ensure it meets the organization's storage requirements.</p> <p>Most server vendors support flash storage through SSDs and traditional hard drive technology. Buyers should check with vendors to confirm the drive types and technologies they support, including Serial-Attached SCSI, Serial Advanced Technology Attachment and non-volatile memory express (<a href="https://www.techtarget.com/searchstorage/definition/NVMe-non-volatile-memory-express">NVMe</a>). The intended server workload will determine which technology must be used. For instance, an organization dealing with large databases and unstructured data generally requires local instance drives, such as NVMe PCI Express units.</p> <p>Other factors on the server storage checklist should include drive speeds and capacity, as well as the number of disks that can be striped together to exceed the capabilities of a single disk.</p> <h3>Connectivity</h3> <p>Network connectivity and interconnects -- such as host bus adapters, which link servers to storage -- are also important server considerations. Buyers should determine their connectivity requirements and then examine a server's specifications to meet those needs.</p> <p>Variables to evaluate include the number and speed of Ethernet connectors, the number and type of USB ports, and support for storage systems, such as storage area networks. Consider the number of expansion slots included within a server, as they can be used to install expansion cards containing additional ports later.</p> <h3>Other features</h3> <p>Additional attributes to investigate include hot-swapping capabilities and the level of redundancy available for components such as hard drives, power supply units and fans. Server management capabilities and security features are also important.</p> <p>Admins should consider the general operating environment in which the new servers will reside. Keeping server temperature and humidity within recommended ranges contributes to high availability. In 2021, the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) updated its <a href="https://www.techtarget.com/searchdatacenter/tip/Use-ASHRAE-guidelines-to-get-server-temperature-right">recommended temperature and humidity ranges</a> for data center hardware. The high end of the ASHRAE temperature range, for example, is now set at 80.6 degrees Fahrenheit. The guidelines can potentially help companies save on data center energy and electrical costs.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineImages/Getty-465462402_ZernLiew-f.png"> <img data-src="https://www.techtarget.com/rms/onlineImages/Getty-465462402_ZernLiew-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineImages/Getty-465462402_ZernLiew-f_mobile.png 960w,https://www.techtarget.com/rms/onlineImages/Getty-465462402_ZernLiew-f.png 1280w" alt="Diagram illustrating server aisle setup with cooled and heated air." data-credit="ZERNLIEW/GETTY IMAGES" height="359" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>Cooling air intakes typically appear on the front of rack servers, with heated air exhausts in back. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> </section> <section class="section main-article-chapter" data-menu-title="Management and maintenance"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Management and maintenance</h2> <p>Managing servers and keeping them in working order encompasses a range of activities and tools.</p> <p>Server monitoring systems, for example, provide critical data that admins can use to detect issues before they result in outages. Some of the essential <a href="https://www.techtarget.com/searchdatacenter/tip/Essential-components-and-tools-of-server-monitoring">components and tools of server monitoring</a> include capacity planning and monitoring tools that track the usage of resources, such as CPU, memory and storage.</p> <p>Specialized <a href="https://www.techtarget.com/searchdatacenter/tip/Improve-efficiency-with-server-energy-consumption-tools">energy consumption tools</a> enable admins to gauge a server's efficiency. Tools in this category include meters embedded in uninterruptible power supplies (UPSes), which report the power consumption of connected devices. Other options include external power meters, online energy consumption calculators and hardware vendors' configuration tools.</p> <p>Although proper maintenance should extend server life, <a href="https://www.techtarget.com/searchitoperations/definition/server-hardware-degradation">hardware degradation</a> is inevitable. A server's physical components will eventually break down, with power, storage, CPU and memory among the problem areas. At some point, servers will need to be decommissioned and replaced.</p> <p>Organizations should plan to decommission a server before it reaches its anticipated end of life. This involves <a href="https://www.techtarget.com/whatis/feature/Free-Server-and-Hardware-Inventory-Templates">inventorying the workloads</a> running on the server and migrating them to new hardware or the cloud. After migrating the necessary data, organizations must destroy hard disks before recycling the server to mitigate data leakage.</p> </section> <section class="section main-article-chapter" data-menu-title="Troubleshooting"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Troubleshooting</h2> <p>End-of-life hardware will eventually need replacing, but until then, admins must <a href="https://www.techtarget.com/searchitoperations/tip/How-to-troubleshoot-a-server-problem">troubleshoot a server</a> to keep it operating. An important first step is determining the scope of the problem: Who are the affected users, and are they reporting any consistent error messages? Once the problem is isolated to a particular server, admins can consult monitoring tools for alerts, check network connections and review the server environment's topology.</p> <p>Troubleshooting and the use of monitoring tools can help organizations maintain system availability. The following are other steps organizations can take as they develop approaches to <a href="https://www.techtarget.com/searchdatacenter/tip/How-to-prevent-and-recover-from-server-failure">prevent and recover from server failure</a>:</p> <ul class="default-list"> <li>Maintain adequate server ventilation.</li> <li>Keep the server's temperature within the manufacturer's recommendations.</li> <li>Follow a routine maintenance regimen.</li> </ul> <p>Failure to update machines also ranks among the top <a href="https://www.techtarget.com/searchdatacenter/tip/5-common-server-issues-and-their-effects-on-operations">common server hardware issues</a> that can result in poor performance. Organizations should develop processes for these key areas:</p> <ul class="default-list"> <li>Regularly updating applications, firmware and OSes.</li> <li>Evaluating the server's security.</li> <li>Testing UPSes and generators.</li> </ul> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/itops-troubleshooting_servers.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/itops-troubleshooting_servers_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/itops-troubleshooting_servers_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/itops-troubleshooting_servers.png 1280w" alt="Chart of six server troubleshooting steps." height="427" width="559"> <figcaption> <i class="icon pictures" data-icon="z"></i>These aren't the only places in which a server problem could originate, but they are the most likely. Check server status to troubleshoot issues and retain log data in case of future problems. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> </section> <section class="section main-article-chapter" data-menu-title="Vendors and products"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Vendors and products</h2> <p>Customers can choose from myriad options when it's time to buy a new server. <a href="https://www.techtarget.com/searchdatacenter/feature/A-rundown-of-server-hardware-vendors-and-the-server-options">Server hardware options</a> in the rack, blade and mainframe server market include offerings from over a dozen vendors. The following are some suppliers, listed in alphabetical order:</p> <ul class="default-list"> <li><b>Acer.</b> Acer's server offerings include its Altos rack systems and tower servers.</li> <li><b>Asus.</b> AsusTek Computer Inc. provides rack servers under the RS Series and ESC Series product lines. It also offers GPU, high-density, tower and edge servers.</li> <li><b>Cisco.</b> Cisco aims to serve customers of varying sizes with its UCS B-Series Blade Servers, UCS C-Series rack servers, UCS S-Series storage servers and branch-office oriented Cisco UCS X-Series modular servers.</li> <li><b>Dell.</b> Dell offers a wide range of <a href="https://www.techtarget.com/searchdatacenter/answer/How-are-rack-and-blade-server-form-factors-different">rack and blade servers</a>, including its PowerEdge R-Series rack servers, PowerEdge M-Series modular servers and PowerEdge T-Series tower servers.</li> <li><b>Fujitsu.</b> Fujitsu's offerings for U.S. customers include its Primergy rack and modular servers and the more powerful Primequest series. The company also sells mainframe servers, but buyers must know that available models can vary between countries.</li> <li><b>Hewlett Packard Enterprise.</b> HPE rack servers include the ProLiant DL Series. HPE also offers tower servers within its ML line.</li> <li><b>IBM.</b> IBM launched the most recent version of its zSystem mainframes, z17, in 2025. Other offerings include a range of rack servers and the LinuxOne 5 system for running Linux on physical or virtual machines.</li> <li><b>Lenovo.</b> Lenovo offers a variety of ThinkSystem rack and tower servers. The company also provides services for mission-critical workloads or supercomputing.</li> <li><b>Oracle.</b> Oracle offers x86 servers and Sparc servers. The company's x86 servers scale from 16 cores to 192 cores. The Sparc server provides more power with up to 384 cores and 32 TB of RAM.</li> <li><b>Super Micro.</b> Super Micro Computer Inc. provides rack systems for enterprise applications and in-memory computing. Other offerings include twin and blade servers.</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="Servers for small businesses"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Servers for small businesses</h2> <p>Small business customers tend to purchase tower servers. The following are a few <a href="https://www.techtarget.com/searchdatacenter/feature/How-to-purchase-the-best-server-hardware-for-small-business">examples of server hardware for small businesses</a>, listed in alphabetical order:</p> <ul class="default-list"> <li><b>Asus.</b> The company's TS100 machine can run as a workstation or server.</li> <li><b>Dell.</b> The PowerEdge R360 is an entry-level server designed for SMB, near-edge computing and remote office environments.</li> <li><b>Fujitsu.</b> The compact Primergy TX1310 M5 server features a screwless chassis and HDD quick-release capabilities.</li> <li><b>HPE.</b> HPE's ProLiant ML350 Gen11 can be configured with various Xeon scalable processors.</li> <li><b>Lenovo.</b> The ThinkSystem ST250 V3 is a small office server intended for business and branch office applications.</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="Purchasing considerations"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Purchasing considerations</h2> <p>Whether purchasing a server for an enterprise or a small business, the fundamentals are essentially the same: Understand your requirements and uses, then compare those to the products you evaluate.</p> <p>Vendors offer various server form factors, configurations and models, many of which are optimized for particular workloads. Buyers should familiarize themselves with purchasing methods. Some vendors sell servers on their website through a direct sales force, while others use a combination of sales outlets that might require a sales representative.</p> <p>Buyers must be willing to conduct a careful analysis or hire a consultant or channel partner, such as a value-added reseller, to identify the server type that best suits their needs. The following encompasses some of the <a href="https://www.techtarget.com/searchdatacenter/tip/An-in-depth-look-at-calculating-server-hardware-costs-for-SMBs">essential purchasing considerations</a>:</p> <ul class="default-list"> <li>Purchasing methods.</li> <li>OS licensing costs.</li> <li>Application licensing costs.</li> <li>Maintenance contract cost.</li> <li>Management software costs.</li> <li>Any costs associated with metered hardware usage.</li> <li>Expandability -- for example, can you add RAM, CPUs or expansion boards in the future?</li> <li>Which components are redundant?</li> <li>Are the redundant components hot-swappable?</li> <li>What are the power and cooling requirements?</li> <li>What remote management capabilities does the server support?</li> <li>What is the form factor, and how will it integrate with the existing infrastructure?</li> <li>What type of warranty does the vendor offer?</li> <li>Does the server support error-correcting memory and remote diagnostics?</li> <li>How many disks are supported, and of what type?</li> <li>What connectivity options exist?</li> <li>What is the manufacturer's reputation?</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="The future of server hardware"> <h2 class="section-title"><i class="icon" data-icon="1"></i>The future of server hardware</h2> <p>The future of server hardware must be viewed in the context of cloud computing and its growing influence. The cloud has become very popular among businesses. Small businesses and corporate data centers will continue to own and operate servers, often in hybrid cloud environments.</p> <p>Servers will remain important, but how technology is consumed will continue to change, especially with the push toward <a href="https://www.techtarget.com/searchdatacenter/definition/green-data-center">green data centers</a> and consumption-based pricing. Organizations and <a href="https://www.techtarget.com/whatis/feature/15-server-and-networking-interview-questions-and-answers">employees must be knowledgeable about the latest technology</a> to advance in the future.</p> <p><b>Editor's note:</b> <i>Vendors and products were chosen based on what companies have server hardware options and the likelihood a company, small or large, would use these servers. This list has been modified to show updated vendors that sell server hardware options as of 2025.</i></p> <p><i>John Moore is a writer for Informa TechTarget covering the CIO role, economic trends and the IT services industry.</i></p> <p><i>Brien Posey is a former 22-time Microsoft MVP and a commercial astronaut candidate. In his more than 30 years in IT, he has served as a lead network engineer for the U.S. Department of Defense and a network administrator for some of the largest insurance companies in America.</i></p> </section> Today's server platforms offer various options for SMBs and enterprise IT buyers; it's important to learn the essentials before making any purchasing decisions. https://cdn.ttgtmedia.com/visuals/digdeeper/6.jpg https://www.techtarget.com/searchdatacenter/Server-hardware-guide-to-architecture-products-and-management Tue, 12 Aug 2025 00:00:00 GMT <p>X (known as Twitter until 2023) is a free <a href="https://www.techtarget.com/whatis/definition/social-networking">social networking</a> and <a href="https://www.techtarget.com/searchmobilecomputing/definition/microblogging">microblogging</a> site where registered users can broadcast short posts, commonly known as tweets. Tweets, of up to 280 characters, can contain text, videos, photos or links.</p> <p>In addition to posting tweets, users can also share, like and reply to tweets with short messages. Nonregistered users can only read tweets. Both registered and nonregistered users need an internet connection and an internet-enabled device to use the X app or its website (x.com).</p> <section class="section main-article-chapter" data-menu-title="Popular uses of X"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Popular uses of X</h2> <p>One of the most common uses of X is to <a href="https://www.techtarget.com/searchunifiedcommunications/answer/Whats-the-difference-between-social-media-and-social-networking">communicate with friends and to make connections</a> with other people. These connections are built and strengthened when a user follows other user's X feeds and vice versa.</p> <p>X is also used to share information quickly. Through tweets, registered users can share information about different subjects -- politics, sports, fashion, cooking, and so on -- with their <i>followers</i>. Followers are the people who follow an individual's or company's X account. Once they do this, anything that individual or company posts on X will appear on the follower's timeline and the follower can then share, like and reply to those tweets.</p> <p>While tweets can be delivered to followers in real time, they might seem like instant messages (<a href="https://www.techtarget.com/searchunifiedcommunications/definition/instant-messaging">IMs</a>). But unlike IMs that disappear when the user closes the application, tweets are permanent, searchable and public. There is also an option for users to protect their tweets so only their followers can read those them. Either way, X provides a platform for users to simultaneously broadcast a message to multiple other users. The more followers they have, the <a href="https://www.techtarget.com/whatis/feature/Traditional-media-vs-new-media-Differences-pros-and-cons">greater their reach</a> and the more the people will read and potentially engage with them.</p> <p>X users can also retweet - or repeat tweets from other users -- to their own X account so their followers can see the original poster's tweet.</p> <p>Many people also use X to connect with companies or <a href="https://www.techtarget.com/whatis/definition/brand">brands</a>. This allows them to get the latest updates and promotions from those brands. For some users, X is the place to follow business leaders, politicians, sportspersons, and celebrities for timely news and insights.</p> <p>X provides a <a href="https://www.techtarget.com/whatis/feature/9-social-media-trends">convenient way to stay current</a> on the latest news and events, including disasters. For example, X was the first source to break the news of the water landing of U.S. Airways Flight 549 in New York City's Hudson River in January 2009. The world first learned about this incident from a tweet and photo posted to X by Janis Krums, a then 23-year-old passenger on a commuter ferry that was trying to rescue the stranded passengers of Flight 549.</p> <p>X users were also among the first to learn about other unfolding disasters, such as a plane crash in Denver and a terrorist attack on a hotel in Mumbai -- both in 2008. As with the Hudon River incident, here too one or more X users were live-tweeting updates about these situations from those locations as they themselves were experiencing them.</p> <p>These uses notwithstanding, X is facing heat due to the growing problem of spreading misinformation and <a href="https://www.techtarget.com/searchenterpriseai/feature/AI-the-2024-US-election-and-the-spread-of-disinformation">disinformation</a> on the platform. In fact, X (and earlier Twitter) has been repeatedly criticized for allowing users -- particularly prominent users with <a href="https://www.techtarget.com/whatis/feature/Paid-verification-explained-Everything-you-need-to-know">blue verification badges</a> and huge numbers of followers -- to spread misleading or incorrect information while facing minimal or no consequences. For this reason, it is advisable for users to double-check the veracity of any news or updates published on X.</p> <div class="youtube-iframe-container"> <iframe id="ytplayer-0" src="https://www.youtube.com/embed/D74DsBzpTgU?autoplay=0&amp;modestbranding=1&amp;rel=0&amp;widget_referrer=null&amp;enablejsapi=1&amp;origin=https://www.techtarget.com" type="text/html" height="360" width="640" frameborder="0"></iframe> </div> </section> <section class="section main-article-chapter" data-menu-title="History of X"> <h2 class="section-title"><i class="icon" data-icon="1"></i>History of X</h2> <p>In 2006, podcasting company Odeo was looking for new ideas. In March of that year, engineer Jack Dorsey proposed creating a short messaging service (<a href="https://www.techtarget.com/searchmobilecomputing/definition/Short-Message-Service">SMS</a>) that would allow users to share brief updates with friends. The idea of a microblogging platform grew from here. Along with Dorsey, Noah Glass, Biz Stone and Evan Williams started Obvious Corp. to further develop and market the product. Glass proposed the name Twttr, derived from "twitter" which is a short burst of inconsequential information and chirps from birds. Dorsey sent the first tweet in March 2006, and the site became publicly available in July 2006.</p> <p>Obvious Corp. received an infusion of venture capital and in April 2007 Twitter was created. Dorsey became the company's first CEO.</p> <p>By 2009, Twitter evolved from a niche social media curiosity to a mainstream media phenomenon, with the number of unique visitors having increased by almost 1,300% since its launch. During the year, actor Ashton Kutcher became the first Twitter user to collect more than a million followers, reflecting a growing trend toward celebrity e-watching. Around this time, companies started using Twitter as a <a href="https://www.techtarget.com/whatis/feature/12-social-media-marketing-tips-to-boost-your-business">business promotion tool</a> and politicians started to add Twitter to their public and media communication toolkits.</p> <p>Also in 2009, Twitter introduced a verification badge that would be added to the accounts of famous people. The objective was to assure followers that the famous person or organization was genuine.</p> <p>Other notable events in Twitter's history include the following:</p> <p><b>2012:</b> Twitter amasses 200 million active users and more than 100 million users post 340 million tweets daily.</p> <p><b>2013:</b> Twitter is in the top 10 of the most visited websites in the world.</p> <p><b>2013:</b> Twitter files for IPO in September. The company's stock starts trading on the NYSE under the symbol "TWTR" and the IPO raises $1.8 billion.</p> <p><b>2015</b>: Twitter's popularity grows but the company remains unprofitable.</p> <p><b>2015:</b> In a bid to boost profits, Twitter adds new features such as Moments that would allow users to create collections of tweets and other content.</p> <p><b>2017: </b>Twitter becomes profitable for the first time.</p> <p><b>2017:</b> The previous character limit of 140 characters for tweets is increased to 280.</p> <p><b>2019:</b> Twitter has more than 330 million active users.</p> <p><b>2020-2021:</b> New features are added to entice more users, including Fleets (collections of tweets that would vanish within 24 hours) and Spaces (Twitter accounts with 600+ followers could host live audio conversations).</p> <p><b>2020:</b> Twitter is hacked, and hackers gain access to numerous high-profile accounts, including the account of future owner Elon Musk.</p> <p><b>2021:</b> Dorsey steps down as CEO, is replaced by CTO Parag Agrawal.</p> <p><b>2022:</b> <a href="https://www.techtarget.com/whatis/infographic/Elon-Musk-businesses-at-a-glance">Elon Musk</a>, CEO of <a href="https://www.techtarget.com/whatis/definition/SpaceX">SpaceX</a> and Tesla, reaches an agreement to acquire Twitter for $44 billion to make it a private company. Although Musk originally withdraws his bid, the acquisition is eventually finalized in October. Musk fires Agrawal, many other top leaders and 50% of the company's global staff.</p> <p><b>2022:</b> Users can now purchase the blue check mark verification for their accounts for $8 per month.</p> <p><b>2023:</b> Twitter is rebranded as X and Twitter's ticker symbol (TWTR) is delisted on major stock exchanges, including the NYSE.</p> <p><b>2023: </b>Twitter partners with investing platform eToro to publish financial education content. Musk appoints Linda Yaccarino as the new CEO of Twitter.</p> <p><b>2025:</b> In March, Musk sells X to his <a href="https://www.techtarget.com/searchenterpriseai/definition/AI-Artificial-Intelligence">AI</a> company xAI in a $33 billion all-stock deal.</p> </section> <section class="section main-article-chapter" data-menu-title="How X works"> <h2 class="section-title"><i class="icon" data-icon="1"></i>How X works</h2> <p>X allows users to post short content of up to 280 characters directly on the site or using its app. This content was known as a <i>tweet</i> on Twitter but X has adopted the new term of <i>posts</i>. Even so, the term tweet remains popular due to its enduring recognition and is used interchangeably with posts. Users can comment on public tweets, like tweets and retweet.</p> <p>Users choose what they want to see on X by following other users, <a href="https://www.techtarget.com/searchcustomerexperience/feature/Influencer-marketing-best-practices-for-B2B-brands">companies and brands and searching topics</a>. Generally, the timeline reflects the users' preferences, but they might see retweets from people they follow as well as promoted tweets, which are paid advertisements.</p> </section> <section class="section main-article-chapter" data-menu-title="Posting a tweet"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Posting a tweet</h2> <p>When users post a tweet on X, the messages are posted on their profile and then appear in followers' feeds. These tweets can also be searched on X. Tweets might include anything from jokes and news to random thoughts and links to articles. Users must adhere to the restricted length of 280 characters per tweet, which includes spaces and punctuation.</p> <p>To weave tweets into a conversation thread or connect them to a general topic, members can add hashtags to a keyword in their post. The <a href="https://www.techtarget.com/whatis/feature/20-social-media-terms-to-know">hashtag</a>, which acts like a meta tag, is expressed as #keyword. This makes the tweet searchable under that keyword. Also, all recent tweets that use that hashtag are displayed when a user clicks on that hashtag.</p> </section> <section class="section main-article-chapter" data-menu-title="Interacting with other X users"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Interacting with other X users</h2> <p>Users can choose to retweet someone else's post, which forwards it to followers' timelines. They can also comment on or reply to posts. To show agreement, registered members can like a tweet.</p> <p>In addition to posting tweets, users can send links and messages to each other through direct messaging. These direct messages are private between the parties sending the messages. In most cases, users do not have to follow each other to send direct messages and start a conversation. If a user has not enabled the option to receive messages from anyone, other users will either need to follow a particular user or get that user to follow them.</p> </section> <section class="section main-article-chapter" data-menu-title="Searching on X"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Searching on X</h2> <p>In the search bar, users can type in a person, topic or <a href="https://www.techtarget.com/searchcontentmanagement/tip/5-free-SEO-keyword-research-tools-to-explore">keyword</a> to search. Every X account is associated with a <i>handle</i> -- a unique label that can only belong to a single user. To search for a specific handle, e.g., elonmusk, the @ is added before it. Thus, the search term will be @elonmusk.</p> <p>Every user X handle is included in the URL for their profile page, specifically after the "/" at the end of the X URL.</p> <p>There is also an #Explore function to search for keywords and trending topics. Twitter determines what is trending based on an <a href="https://www.techtarget.com/whatis/definition/algorithm">algorithm</a> and users' preferences, locations and interests. This algorithm also determines what is popular now and highlights emerging discussions and topics.</p> </section> <section class="section main-article-chapter" data-menu-title="Following others on X"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Following others on X</h2> <p>On <a href="https://www.techtarget.com/whatis/definition/Facebook">Facebook </a>or LinkedIn, a member needs to approve a request from another member in order to form a social connection. But this is not the case with X where anyone can follow anyone else by default, if the account of the person being followed is public. However, if the account is not public, the account owner must approve a potential follower for the follower to see the account owner's posts.</p> <p>To follow a public account, users simply hit <b>Follow</b> on their profile page. On X, following is not mutual. In other words, A may follow B, but B doesn't necessarily have to follow A.</p> </section> <section class="section main-article-chapter" data-menu-title="Managing feeds on X"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Managing feeds on X</h2> <p>X offers X Pro (formerly TweetDeck), a desktop <a href="https://www.techtarget.com/searchenterprisedesktop/definition/client">client</a> to manage multiple accounts, schedule future tweets, find content, view top posts, and more. X Pro is popular among journalists, marketers and other users who need to manage X content across multiple accounts.</p> <p>TweetDeck was a free tool, however, X Pro is not. To access X Pro, users need to buy the X Premium or X Premium+ subscription.</p> </section> <section class="section main-article-chapter" data-menu-title="Addressing the problem of fake accounts"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Addressing the problem of fake accounts</h2> <p>To help limit fake and parody accounts, X created the verified account symbol, which indicates the account is legitimate, belongs to the person or company, and their identity has been verified by X. This helps maintain trust with users and aids in curtailing the growing problem of misinformation and rumormongering on social media.</p> <p>To earn verified status, the account must be associated with a popular brand or person. They must also follow X's criteria using an official website, ID or email address.</p> </section> <section class="section main-article-chapter" data-menu-title="Business uses for X"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Business uses for X</h2> <p>Businesses use X for brand awareness and public relations, usually as part of a broader <a href="https://www.techtarget.com/whatis/definition/social-media-marketing-SMM">social media marketing</a> strategy. Using X helps businesses to do the following:</p> <ul class="default-list"> <li>Interact with customers.</li> <li>Provide timely customer service.</li> <li>Partner with celebrities for ads or promotions.</li> <li>Monitor the competition.</li> <li>Conduct market research.</li> <li>Announce new products, sales and events.</li> </ul> <p>Businesses can also purchase promoted tweets -- or ads -- to reach more users or to engage with a broader audience. These tweets appear like other posts but are labeled "promoted." Some companies reference celebrities in their posts by entering @ followed by the celebrity's X handle. These references, known as <i>mentions</i> are a way to bring that celebrity into a discussion or thread, often to reach more users for promotional or community building purposes.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/social_media_vs_social_networking_key_differences-f.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/social_media_vs_social_networking_key_differences-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/social_media_vs_social_networking_key_differences-f_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/social_media_vs_social_networking_key_differences-f.png 1280w" alt="Info box outlining the differences between social media and social networking." height="310" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>Learn the differences between social media and social networking. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> </section> <section class="section main-article-chapter" data-menu-title="Issues and challenges with X"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Issues and challenges with X</h2> <p>Some of the most prevalent issues with X include the following:</p> <ul class="default-list"> <li><b>Spreading of fake news or disinformation.</b> On X, information is posted in real time, so it is hard to stop or slow down the spread of fake news. Twitter launched the <a target="_blank" href="https://blog.twitter.com/en_us/topics/product/2021/introducing-birdwatch-a-community-based-approach-to-misinformation" rel="noopener">Birdwatch program</a> in 2021 to help limit tweets from spreading disinformation. Anyone can sign up for the program, which is now known as <a target="_blank" href="https://help.x.com/en/using-x/community-notes" rel="noopener">Community Notes</a>, to add more context or source material to an original post. X posts with notes appended by other users are displayed with a small box titled "Readers added context." To avoid falling prey to disinformation, users should also learn to spot it and report such tweets if needed. Twitter reviews reported tweets and takes appropriate action, such as account suspension, if necessary.</li> <li><b>Twitter</b> <b>bots.</b> Computer programs called <a href="https://www.techtarget.com/whatis/definition/bot-robot">bots</a> automatically tweet, retweet and follow other accounts. However, they can be hard to spot as nonhumans since they often accurately mimic human speech and communication patterns. These fake accounts, often used by unethical advertisers, can help the advertiser to build a large follower base. They can also spread disinformation or propaganda on a large scale.</li> <li><b>Harassment and negative comments.</b> This can affect both individuals and businesses.</li> <li><b>Data security and privacy.</b> X has been hacked numerous times. For example, in July 2020, <a href="https://www.techtarget.com/whatis/definition/cryptocurrency">cryptocurrency</a> fraudsters hacked into the accounts of many famous people to perpetrate a <a href="https://www.techtarget.com/whatis/feature/Common-cryptocurrency-scams">financial scam</a>. The scammers posted tweets from the hacked accounts, posing as a famous person asking people to send bitcoin currency while promising that Twitter (as it was then known) would double the money for a charitable donation. It scammed people out of nearly $100,000. Hackers also get into accounts to post misinformation from that person, typically a public figure.</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="Changes to Twitter since Musk takeover"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Changes to Twitter since Musk takeover</h2> <p>Since Musk took control of Twitter in October 2022, he has made changes to the platform and the organization, including legally changing the company's name from Twitter to X Corp. Some other changes include the following:</p> <ul class="default-list"> <li><b>X Premium. </b>X Premium is a <a href="https://www.techtarget.com/searchcloudcomputing/definition/subscription-based-pricing-model">paid subscription</a> to X for both individuals and organizations. The service is offered in three tier levels: Basic, Premium and Premium+. Basic users can edit posts, publish longer posts and videos, format text and bookmark folders. They also get custom app icons and reply prioritization. The Premium tier includes all the Basic features plus a blue checkmark, fewer ads, ID verification and access to Media Studio. Premium+ includes all Premium features plus no ads in the For You and Following timelines. Premium+ subscribers will also be able to access Grok -- the conversational AI assistant developed by xAI.</li> <li><b>Company layoffs. </b>Since taking over X, Musk has reduced X staff by about 80% or 6,000 employees. Many employees were fired while others were offered voluntary resignation packages. The shrinking workforce in 2022 and 2023 initially resulted in a massive financial hit, with some investment firms writing down X's valuation. By early 2025, however, the company showed signs of recovering financially with its leaner <a href="https://www.techtarget.com/whatis/definition/operating-model">operating model</a> and an uptick in its valuation.</li> <li><b>Tweet view counts. </b>View counts allow users to see the reach of their posts (tweets).</li> <li><b>Reinstatement of controversial accounts. </b>Musk reinstated several high-profile banned or suspended accounts after his takeover, including former U.S. President Donald Trump's, rapper Ye's (Kanye West), and influencer Andrew Tate's, who is under investigation in Romania for human trafficking charges. All these accounts were previously banned for posting or promoting controversial, offensive or inflammatory content.</li> <li><b>Account identification and verification. </b>The blue checkmarks were previously used in Twitter's verification process for individuals and organizations. Now, X offers gold or gray ticks for businesses, governments and nonprofits. The gold checkmark indicates that the account belongs to an official business, while the gray checkmark is given to governmental and multilateral organizations. These ticks are part of the Verified Organizations service, which also comes with other features like affiliate badges and VIP support.</li> <li><b>Encrypted direct messages. </b>Verified users can send <a href="https://www.techtarget.com/searchsecurity/definition/encryption">encrypted</a> messages to other verified users or organizations. The encrypted messages are protected by a cryptographic mechanism that scrambles information and generates a private-public key pair so the sender can safely send the message and only the intended recipient can read it.</li> <li><b>Video and voice calling features. </b>Musk's X provides video and voice calling features for <a href="https://www.techtarget.com/searchmobilecomputing/definition/iOS">iOS</a> and <a href="https://www.techtarget.com/searchmobilecomputing/definition/Android-OS">Android</a> devices. All accounts can make and receive calls although users can update their Direct Messages Settings to control who can call them.</li> </ul> </section> <section class="section main-article-chapter" data-menu-title="Controversies surrounding X in the Musk era"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Controversies surrounding X in the Musk era</h2> <p>Musk's takeover of Twitter has been riddled with controversies, starting with his inconsistent decision-making regarding his proposed purchase of the company. His other moves, such as the elimination of Twitter's <a href="https://www.techtarget.com/searchcontentmanagement/tip/Types-of-AI-content-moderation-and-how-they-work">content moderation</a> body, reinstatement of many banned accounts, and failure to control the spread of misinformation have also been heavily criticized.</p> <p>As a result, many organizations -- both private and public -- have withdrawn or reduced their presence and ads on X. For example, in April 2023, NPR announced they would no longer use X after being labeled "government-funded media" -- a label that NPR objected to on the grounds that it undermined its credibility as an editorially independent media organization.</p> <p>Around the same time, New York's Metropolitan Transportation Authority (MTA) halted its use of X for posting service alerts after the platform announced that it was going to charge government entities to use their services.</p> <p>While X does offer an application programming interface (<a href="https://www.techtarget.com/searchapparchitecture/definition/application-program-interface-API">API</a>) for programmatic access to its services, the API is not free, even for public service organizations like the MTA. In fact, just a month prior to the MTA's action, X launched new access tiers for the Twitter API, with the Basic tier starting at $100/month.</p> <p>Additionally, X is now considered a less reliable information resource, particularly around serious issues like politics, elections, human rights abuses and wars. Concerns about hate speech, <a href="https://www.techtarget.com/whatis/definition/cyberbullying">cyberbullying</a> and the spread of conspiracy theories are also becoming increasingly visible and vocal. These issues and Musk's decisions and leadership will determine whether X grows as a social media platform or fades into obscurity like other once iconic social media brands.</p> <div class="youtube-iframe-container"> <iframe id="ytplayer-1" src="https://www.youtube.com/embed/IwDM7uVRYc4?autoplay=0&amp;modestbranding=1&amp;rel=0&amp;widget_referrer=null&amp;enablejsapi=1&amp;origin=https://www.techtarget.com" type="text/html" height="360" width="640" frameborder="0"></iframe> </div> <p><i>Social media disinformation is intended to deceive and can spread rapidly. Explore </i><a href="https://www.techtarget.com/whatis/feature/10-ways-to-spot-disinformation-on-social-media"><i>some ways to identify disinformation in social media</i></a><i>.</i></p> </section> X (known as Twitter until 2023) is a free social networking and microblogging site where registered users can broadcast short posts, commonly known as tweets. https://cdn.ttgtmedia.com/visuals/digdeeper/6.jpg https://www.techtarget.com/whatis/definition/Twitter Tue, 29 Jul 2025 11:00:00 GMT <p>Consulting and systems integration companies are among the hundreds of launch partners backing the new AWS agentic AI cloud marketplace, which the hyperscaler rolled out today.</p> <p>Partners such as Accenture, Cognizant, Deloitte, Presidio, PwC, Tata Consultancy Services and Wipro provide offerings on AWS' AI Agents and Tools marketplace, which functions within the flagship AWS Marketplace. <a href="https://www.techtarget.com/searchenterpriseai/definition/agentic-AI">Agentic AI</a> products and services have been available on the AWS Marketplace, but the new agentic AI one differs as a distinctly branded category and for its integration with Amazon Bedrock AgentCore services. <a href="https://www.techtarget.com/searchenterpriseai/news/366627853/AWS-launches-AgentCore-system-and-agentic-marketplace">AgentCore</a>, also announced today, lets customers deploy and run AI agents.</p> <p>AWS' agentic AI marketplace move tracks with the broader trend toward fulfilling customer demand for <a href="https://www.techtarget.com/searchitchannel/news/366627020/Partners-begin-to-target-agentic-AI-marketplace-platforms">agentic AI in marketplaces</a>, where IT service providers play a growing role. Google Cloud Marketplace, Microsoft's Azure Marketplace and Salesforce's AppExchange also offer subsections that focus on agentic AI.</p> <p>Chris Sullivan, vice president of AWS channels and alliances for the Americas, cited an "incredible increase" in demand and opportunity for agentic AI as influencing the timing of the new marketplace's launch.</p> <p>To meet that demand, Sullivan anticipates that partners will be able to build complex offerings that combine professional services and software in the AI Agents and Tools marketplace. In the AWS Marketplace, partners often use the platform's Channel Partner Private Offer, or CPPO, feature to bundle and <a href="https://www.techtarget.com/searchitchannel/news/366623839/AWS-Marketplace-channel-partners-rev-software-service-sales">sell software and services</a>.</p> <p>AWS specifically cites professional services as one of the types of "agent solutions" available in the AI Agents and Tools marketplace. The <a target="_blank" href="https://aws.amazon.com/marketplace/solutions/ai-agents-and-tools/" rel="noopener">company said</a> customers will be able to "develop and implement an AI strategy with specialized professional services from AWS Partners." The other categories include embedded agents, prebuilt agents, agent tools and agent development offerings.</p> <p><i>John Moore is a writer for Informa TechTarget covering the CIO role, economic trends and the IT services industry.</i></p> Accenture, Cognizant and Deloitte are among the partners with offerings on AWS' AI Agents and Tools marketplace, which is expected to combine professional services and software. https://cdn.ttgtmedia.com/rms/onlineimages/iot_g1182604383.jpg https://www.techtarget.com/searchitchannel/news/366627818/Consultants-SIs-back-AWS-agentic-AI-marketplace-launch Wed, 16 Jul 2025 18:09:00 GMT <p>An application support engineer (ASE) is an IT professional who is responsible for <a href="https://www.techtarget.com/whatis/definition/troubleshooting">troubleshooting</a> the software applications a company uses and ensuring that help desk tickets are resolved in a timely fashion. In a large enterprise, an ASE might act as a subject matter expert for a specific <a href="https://www.techtarget.com/searchapparchitecture/definition/software-stack">software stack</a>. In a small to mid-size business, an ASE will typically be responsible for supporting a limited number of client-facing software applications.</p> <p>Application support engineers play an important role in companies that depend heavily on software to operate efficiently. In general, ASEs are responsible for <a href="https://www.techtarget.com/searchenterprisedesktop/definition/Application-monitoring-app-monitoring">monitoring application performance</a> to detect and address problems before they affect users, conducting root cause analyses (<a href="https://www.techtarget.com/searchitoperations/definition/root-cause-analysis">RCA</a>) to prevent recurring issues and assisting with software updates and <a href="https://www.techtarget.com/searchenterprisedesktop/definition/patch">patches</a>.</p> <p>Depending on a company's size and industry, an ASE might be tasked with managing communication between an organization's IT department and its business users or providing expert technical assistance on behalf of a software vendor. Many ASEs begin their careers as <a href="https://www.techtarget.com/searchcustomerexperience/definition/help-desk">help desk</a> technicians or IT support specialists. Over time, as an ASE gains more experience, they might choose to move into more granular support roles that focus on specific applications or software suites.</p> <p>To get hired as an ASE, job candidates should have a strong mix of technical skills, <a href="https://www.techtarget.com/searchcio/definition/soft-skills">soft skills</a> and hands-on experience with <a href="https://www.techtarget.com/searchsoftwarequality/definition/application">application software</a>. Familiarity with application monitoring tools, ticketing systems and IT service management (<a href="https://www.techtarget.com/searchitoperations/definition/ITSM">ITSM</a>) platforms, like <a href="https://www.techtarget.com/searchitoperations/definition/ServiceNow">ServiceNow</a> or <a href="https://www.techtarget.com/searchsoftwarequality/definition/Jira">Jira</a>, can also be useful, as can certifications in ITIL or CompTIA and or specific cloud platforms.</p> <section class="section main-article-chapter" data-menu-title="Application support engineer role"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Application support engineer role</h2> <p>As the title suggests, an ASE's main role is to provide support for the software applications that enterprise users require to do their jobs. This means ASEs must understand how specific applications are supposed to work on the <a href="https://www.techtarget.com/searchenterprisedesktop/definition/client">client</a>-side as well as the <a href="https://www.techtarget.com/whatis/definition/front-end">backend</a>. When end users face issues that hinder the software's usability, it is the ASE's job to troubleshoot and resolve the issues as quickly as possible.</p> <p>That said, the ASE's role is rarely limited to simply diagnosing configuration errors, system errors, <a href="https://www.techtarget.com/searchsoftwarequality/definition/bug">bugs</a> and other problems that result in a poor user experience (<a href="https://www.techtarget.com/searchcio/definition/UX-user-experience">UX</a>). Some ASEs, particularly in large companies, are also tasked with working with vendors and using what they learn to identify potential enhancements that can improve the product's usefulness and UX.</p> <p>In some cases, ASEs might be expected to be a subject matter expert (SME) for a specific software application or suite. Vendors and large enterprises typically hire this type of ASE to provide deep technical expertise, resolve complex issues that go beyond general support, and serve as a liaison between users, <a href="https://www.techtarget.com/searchapparchitecture/opinion/Level-up-with-these-soft-skills-for-software-developers">software developers</a> and other technical team members.</p> <p>The day-to-day responsibilities of an application support engineer can vary significantly depending on the organization's size, industry, software environment and internal IT structure. In general, however, ASE responsibilities tend to fall into a few consistent categories:</p> <h3>Incident and ticket management</h3> <p>ASEs typically work within a help desk or <a href="https://www.techtarget.com/searchitoperations/ehandbook/Adapt-ITSM-workflows-for-modern-IT-needs">IT service management system</a> to log, prioritize and resolve tickets. Responsibilities often include the following:</p> <ul class="default-list"> <li>Responding to general application-related questions and <a href="https://www.techtarget.com/searchwindowsserver/definition/service-desk">IT service desk</a> trouble tickets from users in a timely and relevant manner.</li> <li>Assessing multiple open issues and prioritizing issues that have the greatest effect on product usability and/or user productivity.</li> <li>Documenting the helpdesk event management process.</li> </ul> <h3>Troubleshooting and issue resolution</h3> <p>ASEs use debugging tools and diagnostic procedures to identify root causes and implement fixes. Responsibilities often include the following:</p> <ul class="default-list"> <li>Minimizing service disruptions and operational downtime.</li> <li>Performing root cause analyses to understand and address underlying issues that might be affecting application performance.</li> <li>Researching how to resolve common issues, and if possible, prevent them from recurring.</li> <li><a href="https://www.techtarget.com/searchenterprisedesktop/tip/Creating-a-patch-management-policy-Step-by-step-guide">Appling required patches and updates</a> to improve application performance and stability.</li> <li>Following corporate best practices for <a href="https://www.techtarget.com/searchdisasterrecovery/definition/change-control">change control</a>.</li> </ul> <h3>User support and communication</h3> <p>In their support role, ASEs act as a bridge between internal technical teams and end users. Responsibilities often include the following:</p> <ul class="default-list"> <li>Interacting with end users to ensure software applications meet their needs.</li> <li>Gathering information about reported problems.</li> <li>Providing updates during the <a href="https://www.techtarget.com/searchsecurity/tip/Incident-management-vs-incident-response-explained">incident response</a> process and helping users understand their issue's underlying cause and resolution.</li> </ul> <h3>Application monitoring and maintenance</h3> <p>ASEs often act as the "eyes and ears" for applications in a production environment. Responsibilities often include the following:</p> <ul class="default-list"> <li>Ensuring that applications are compatible with the organization's broader <a href="https://www.techtarget.com/searchdatacenter/definition/infrastructure">IT infrastructure</a>.</li> <li><a href="https://www.techtarget.com/searchapparchitecture/feature/Learn-the-benefits-of-APM-software-in-the-enterprise">Monitoring application performance</a> in real time.</li> <li>Adjusting system settings and application configurations to improve application performance.</li> <li>Analyzing data in <a href="https://www.techtarget.com/whatis/definition/log-log-file">log files</a> to identify performance bottlenecks and early warning signs of instability.</li> <li>Applying patches and updates to improve application availability, performance and stability.</li> </ul> <h3>Collaboration with stakeholders</h3> <p>ASEs frequently act as subject matter experts for specific applications or systems and manage communication between internal and external stakeholders. Responsibilities often include the following:</p> <ul class="default-list"> <li>Working closely with the organization's quality assurance (<a href="https://www.techtarget.com/searchsoftwarequality/definition/quality-assurance">QA</a>) and IT infrastructure teams.</li> <li> <p>Informing product managers and business analysts about the frequency and effect of application issues on business processes.</p> </li> <li>Gathering user feedback on desired features or improvements and communicating them to internal development teams for consideration in future releases.</li> </ul> <h3>Documentation and knowledge management</h3> <p>ASEs are expected to contribute to an organization's <a href="https://www.techtarget.com/searchcio/definition/knowledge-based-systems-KBS">knowledge base</a>, maintain service reports and write up actionable bug reports for software engineering teams. Responsibilities often include the following:</p> <ul class="default-list"> <li>Acquiring and aggregating relevant information about application issues from user stories, technical logs and monitoring tools.</li> <li>Documenting issue <a href="https://www.techtarget.com/whatis/definition/triage">triage</a> processes, service events and solutions.</li> <li>Creating internal user guides, FAQs and <a href="https://www.techtarget.com/searchcustomerexperience/tip/Best-practices-for-creating-chatbot-scripts">automated chatbot responses</a>.</li> <li>Providing data on application usage and performance trends to help infrastructure teams plan for future capacity needs.</li> </ul> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/virt_desktop-helpdesk_management_event_process_desktop.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/virt_desktop-helpdesk_management_event_process_desktop_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/virt_desktop-helpdesk_management_event_process_desktop_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/virt_desktop-helpdesk_management_event_process_desktop.png 1280w" alt="Flowchart that shows the steps involved in addressing and closing a help desk ticket."> <figcaption> <i class="icon pictures" data-icon="z"></i>An ASE is responsible for documenting the helpdesk event management process. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> </section> <section class="section main-article-chapter" data-menu-title="Application support engineer skills"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Application support engineer skills</h2> <p>The specific skills required of an ASE can vary depending on the organization's industry and the software that employees use. For example, an ASE in charge of a healthcare application may need to understand how electronic medical records (<a href="https://www.techtarget.com/searchhealthit/definition/electronic-health-record-EHR">EMR</a>) work and the importance of data privacy. In contrast, an ASE responsible for automating IT workflow with <a href="https://www.techtarget.com/searchitoperations/definition/Ansible">Ansible</a> or moving a proprietary internal app to <a href="https://www.techtarget.com/searchcloudcomputing/definition/Windows-Azure">Microsoft Azure</a> might need experience with <a href="https://www.techtarget.com/searchcustomerexperience/definition/integration">systems integration</a> applications.</p> <p>These differences aside, most ASEs are expected to have skills in the following core areas:</p> <p><b>Application performance management (APM).</b> ASEs should be able to <a href="https://www.techtarget.com/searchapparchitecture/tip/APM-vs-observability-Key-differences-explained">evaluate application performance</a>, identify inefficiencies and implement strategies to improve reliability, speed and the user experience.</p> <p><b>Application monitoring.</b> ASEs must be proficient in using <a href="https://www.techtarget.com/searchapparchitecture/tip/Using-AI-and-machine-learning-for-APM">AI-enabled monitoring tools</a> to track application health, identify bottlenecks and reduce downtime.</p> <p><b>Troubleshooting and debugging.</b> ASEs need the skills required to diagnose and resolve user-reported issues. They should be able to identify root causes and apply technical fixes without interrupting operations.</p> <p><b>Communication. </b>As the primary point of contact for users experiencing application issues, ASEs must be able to communicate clearly and thoughtfully across multiple channels. They should have strong active listening and time management skills and be able to work with stakeholders who have varying technical backgrounds.</p> <p><b>Data analytics.</b> ASEs should be able to analyze application logs and user behavior patterns to help solve user-reported issues.</p> <p><b>SQL and database querying.</b> Many application issues involve data access and <a href="https://www.techtarget.com/searchdatacenter/definition/integrity">data integrity</a> problems, so ASEs should know how to query databases, understand schemas and troubleshoot data-related issues using <a href="https://www.techtarget.com/searchdatamanagement/definition/SQL">SQL</a> or similar query languages.</p> <p><b>Scripting and automation.</b> ASEs are often expected to write and/or use <a href="https://www.techtarget.com/whatis/definition/script">scripts</a> that can automate recurring tasks, streamline deployments or extract log data.</p> <p><b>Operating systems.</b> ASEs often work across Windows, Linux or macOS environments, so they need to understand each OS's file system and be familiar with basic OS system administration tasks.</p> <p><b>APIs and integration points.</b> Since many enterprise applications rely on <a href="https://www.techtarget.com/searchapparchitecture/definition/RESTful-API">REST APIs</a> and <a href="https://www.techtarget.com/searchapparchitecture/tip/Webhooks-explained-simply-and-how-they-differ-from-an-API">webhooks</a>, ASEs should be comfortable reading API documentation, making <a href="https://www.techtarget.com/searchapparchitecture/definition/API-testing">API test calls</a> and troubleshooting integration issues.</p> <p><b>Security awareness.</b> ASEs may be tasked with troubleshooting user permissions, so they need to understand basic <a href="https://www.techtarget.com/searchsecurity/definition/role-based-access-control-RBAC">role-based access control</a>.</p> <p><b>ITIL and/or IT service management.</b> Many ASEs work within structured ticketing systems like ServiceNow or Jira. It's important for ASEs to understand how these systems work and the role they play in <a href="https://www.techtarget.com/searchdatacenter/definition/ITIL">ITIL</a> frameworks.</p> <p><b>Cloud computing.</b> Now that more applications are hosted in cloud or hybrid environments, ASEs need to be familiar with Amazon Web Services (AWS), Microsoft Azure and <a href="https://www.techtarget.com/searchcloudcomputing/definition/Google-Cloud-Platform">Google Cloud</a> and feel comfortable working with virtualization platforms.</p> <p><b>Diagnostics tools. </b>Many <a href="https://www.techtarget.com/searchitoperations/tip/Top-observability-tools">observability platforms</a> (like Datadog, Splunk, Dynatrace or New Relic) use AI/machine learning algorithms to detect anomalies, predict failures or generate insights from application log data. ASEs should understand how these tools work and know how to interpret their outputs.</p> <p><b>Generative AI.</b> In large companies, senior ASEs might be tasked with helping to build and train chatbots that can provide low-level help desk support. The insight an ASE brings to the project can bridge the gap between <a href="https://www.techtarget.com/searchenterpriseai/definition/generative-AI">generative AI</a> capabilities and application-specific use cases.</p> <div class="youtube-iframe-container"> <iframe id="ytplayer-0" src="https://www.youtube.com/embed/haP5AnChldU?autoplay=0&amp;modestbranding=1&amp;rel=0&amp;widget_referrer=null&amp;enablejsapi=1&amp;origin=https://www.techtarget.com" type="text/html" height="360" width="640" frameborder="0"></iframe> </div> </section> <section class="section main-article-chapter" data-menu-title="Application support engineer salary"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Application support engineer salary</h2> <p>Salaries for application support engineers can vary widely depending on the job candidate's experience, the organization's industry and the job opening's location.</p> <p>According to Indeed, the <a target="_blank" href="https://www.indeed.com/career/application-support-engineer/salaries" rel="noopener">average annual salary</a> for an ASE in the United States is approximately $99,054 as of May 2025. Senior ASEs in the United States can earn as much as $164,727 per year, while entry-level salaries might start at $76,415.</p> <p>The size of the company that's hiring an ASE can also impact salary. Larger companies in industries like finance, healthcare or technology often have bigger IT budgets and more complex application environments. To attract and retain ASEs with skills in specific areas, they tend to offer higher salaries and provide more benefits. In contrast, smaller or mid-sized companies might offer lower base salaries but compensate by providing a more flexible work environment.</p> <p>Given the variability, job seekers are encouraged to consult individual job postings to understand the specific salary range offered by a particular company.</p> </section> <section class="section main-article-chapter" data-menu-title="Application support engineers in the enterprise"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Application support engineers in the enterprise</h2> <p>In most enterprises, ASEs are part of a large IT department that employs a number of support professionals with varying skill levels and areas of specialization. Depending on the company structure, ASEs might report to a senior ASE, a support team manager or a senior software engineer.</p> <p>As is common in large enterprises, ASE support is often divided into tiers. Tier 1 ASEs typically assist end users and handle basic troubleshooting issues. More complex or unresolved issues are escalated to tier 2 or tier 3. ASEs in these tiers usually have advanced skills that allow them to resolve deeper technical problems.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/four_tiers_of_application_support-f.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/four_tiers_of_application_support-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/four_tiers_of_application_support-f_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/four_tiers_of_application_support-f.png 1280w" alt="Comparison table that shows the four tiers of application support and the role ASEs play in each tier." height="356" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>A tiered support model ensures that routine issues are handled by entry-level staff and complex problems are handled by senior ASEs or ASEs who have subject-matter expertise. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> <p><i>Application support engineers can help businesses stay competitive by automating helpdesk ticket routing and using chatbots to provide instant responses to common issues. Explore </i><a href="https://www.techtarget.com/searchitoperations/feature/service-desk-automation-examples-to-enhance-IT-support"><i>service desk automation examples to enhance IT support</i></a><i>.</i></p> </section> An application support engineer (ASE) is an IT professional who is responsible for troubleshooting the software applications a company uses and ensuring that help desk tickets are resolved in a timely fashion. https://cdn.ttgtmedia.com/visuals/digdeeper/6.jpg https://www.techtarget.com/whatis/definition/application-support-engineer-ASE Mon, 07 Jul 2025 16:12:00 GMT <p>Times are changing for managed security service providers.</p> <p>The arrival of new technologies, evolving customer demand and increasing competition compels MSSPs to rethink their managed service delivery strategy. Indeed, service providers are upgrading and broadening their technology stacks, emphasizing automation and reaching out to new customer segments.</p> <p>This latest phase of MSSP evolution follows the sector's maturation in the 2010s and a dramatic uptick in <a href="https://www.techtarget.com/searchsecurity/tip/15-benefits-of-outsourcing-your-cybersecurity-operations">security outsourcing</a> that began during the COVID-19 pandemic. Prospects for continued growth appear favorable amid double-digit growth in the broader <a href="https://www.techtarget.com/searchsecurity/definition/cybersecurity">cybersecurity</a> market.</p> <p>Canalys, part of Informa TechTarget's Omdia market research division, reported earlier this month that its Cybersecurity Titans Index increased 16% year-over-year in the first quarter of 2025. Based on the revenue performance of 16 public cybersecurity vendors, that benchmark is dramatically outperforming the overall IT spending growth rate, which Canalys downwardly revised to 7% from its previous estimate of 8.3%.</p> <p>In <a target="_blank" href="https://www.linkedin.com/posts/jaymcbain_the-cybersecurity-industry-continues-to-be-activity-7336783061298180097-J_DG/" rel="noopener">written commentary</a>, Jay McBain, chief analyst for channels, partnerships and ecosystems at Canalys, said the benchmark results reflected "continued prioritization of cybersecurity budgets amid growing macro-economic uncertainty and wider disruption." He noted that nearly all the index companies have partner-first go-to-market strategies.</p> <section class="section main-article-chapter" data-menu-title="Modernizing the MSSP stack"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Modernizing the MSSP stack</h2> <p>MSSPs have traditionally relied on a mix of human expertise, hands-on-keyboard services and automation to deliver security services. However, the general trend among service providers is to emphasize the latter component. Accordingly, MSSPs are modernizing and extending their service platforms to provide more comprehensive automation and address emerging threats.</p> <p>DirectDefense, an information security services company based in Denver, spent much of 2024 building out its <a href="https://www.techtarget.com/searchsecurity/definition/Security-Operations-Center-SOC">security operations center (SOC)</a> and bolstering its ThreatAdvisor platform, which provides security orchestration and response capabilities. Charly Bun, senior director of MSSP operations at DirectDefense, said the modernization task continues. The company is focused on balancing cost and service quality as it develops midmarket security services offerings, which it plans to launch in the third quarter.</p> <p>Bun said MSSPs have tended to underserve smaller organizations. Part of the problem is a high price barrier that can put <a href="https://www.techtarget.com/whatis/definition/managed-detection-and-response-MDR">managed detection and response (MDR)</a> and virtual chief information security officer (vCISO) services beyond the reach of midsize organizations, he added. Automating a wider array of security functions is central to achieving a more favorable price point.</p> <p>DirectDefense's approach is to offer customers a set number of vCISO hours to develop a security strategy and then "drive everything else through the technology," Bun said. Automation lets the company reduce the cost of providing services and offer high-value ones for customers, he noted. For example, without widespread automation, an MSSP like DirectDefense might need to limit its vCISO services to occasional consultations to make them cost-effective to deliver.</p> <blockquote class="main-article-pullquote"> <div class="main-article-pullquote-inner"> <figure> You are starting to see some MSSPs take that technology-enabled delivery approach. </figure> <figcaption> <strong>Charly Bun</strong>Senior director, MSSP, DirectDefense </figcaption> <i class="icon" data-icon="z"></i> </div> </blockquote> <p>"You are starting to see some MSSPs take that technology-enabled delivery approach," Bun said. "The economics don't make sense unless you leverage technology."</p> <p>Quorum Cyber, an MSSP based in Edinburgh, Scotland, isn't modernizing its core platform, a cloud-native offering built on Microsoft's security technology. But the company, which has offices in the United Kingdom, Canada and the U.S., continues to augment its cybersecurity foundation.</p> <p>"Things move all the time," said Federico Charosky, CEO and founder of Quorum Cyber. "I define my focus based on where the threat actors, the bad guys, are putting their focus on."</p> <p>The cybersecurity company launched in 2016 and initially emphasized MDR and <a href="https://www.techtarget.com/searchsecurity/definition/extended-detection-and-response-XDR">extended detection and response (XDR)</a> services. Over time, it has added data security, identity threat detection and response, and operational technology security. Now Quorum Cyber is extending its reach into AI.</p> <p>"The biggest risk of AI is the large language models our customers are building," Charosky said. "They are huge coffers of data that have no security boundaries around them. We are developing our platform to make sure we can observe data injection and data exfiltration attacks."</p> </section> <section class="section main-article-chapter" data-menu-title="Software vendors offer MSSP automation"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Software vendors offer MSSP automation</h2> <p>MSSPs both develop their own tools to deliver security services and partner with cloud and software companies that have built security platforms. Regarding the latter, vendors such as Conifers.ai and Stellar Cyber recently launched MSSP channel initiatives to get their platforms in front of service providers. Those vendors said their technology can help MSSPs improve profitability and offer their services to a broader customer base.</p> <p>Conifers.ai, a Dallas-based company that offers a security operations (SecOps) platform, launched its channel program in May. The company's CognitiveSOC product uses <a href="https://www.techtarget.com/searchenterpriseai/definition/agentic-AI">agentic AI</a> to automate security incident investigations. MSSPs can deploy the software to offer managed SOC and MDR services.</p> <p>Relying more on software boosts efficiency, opening opportunities for service providers to cultivate new revenue sources and improve margins, said Tom Findling, co-founder and CEO of Conifers.ai. Cost-saving automation also lets providers offer services to markets they couldn't previously reach from a pricing standpoint, he said. "It allows [MSSPs] to go down-market to places that were previously not accessible just because of their operational model."</p> <p>Those places include businesses in the 300- to 3,000-employee range, where Findling said he sees a lot of demand. Organizations in the upper end of that range, those with 1,000 to 3,000 employees, are a bit more mature than smaller companies and have an appetite for security investment, he noted. Companies that fall below that threshold have historically been sensitive to price but are now more willing than in previous years to invest in security services.</p> <p>"Businesses that have never had anything around detection and response are raising their hands, saying, 'We want to find a service provider,'" Findling said.</p> <p>Stellar Cyber, which launched its MSSP partner program in April, also focuses on SOC automation. The company's Open XDR SecOps platform uses machine learning to detect threats and find correlations among alerts. It also uses <a href="https://www.techtarget.com/searchenterpriseai/definition/generative-AI">generative AI</a> to speed up threat analysis.</p> <p>Such automation streamlines repetitive SOC tasks, said Andrew Homer, vice president of strategic alliances at Stellar Cyber, which is based in San Jose, Calif. As a result, MSSPs can offer cost-effective security coverage -- along with more advanced services -- without linearly scaling headcount, he added. Greater efficiency, in turn, opens new SMB markets.</p> <p>"This absolutely helps MSSPs extend their services to smaller clients," Homer said.</p> </section> <section class="section main-article-chapter" data-menu-title="Increasing competition among MSSPs"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Increasing competition among MSSPs</h2> <p>Platform upgrades and the resulting efficiency gains also help MSSPs deal with heightened competition. A flood of new service providers entered the market in 2020 and 2021, after the start of the COVID-19 pandemic. The pandemic <a href="https://www.techtarget.com/searchitoperations/news/252481738/COVID-19-remote-work-forces-shift-on-SecOps-strategy">sparked a rise in remote work</a> and accelerated digital transformation, both of which increased organizations' attack surfaces. But other forces were also at play, including a persistent <a href="https://www.techtarget.com/searchsecurity/definition/ransomware">ransomware</a> epidemic and an extended period of economic uncertainty.</p> <p>In this environment, the need for wider security coverage overwhelmed in-house technology teams. Businesses once reluctant to outsource security became more amenable to hiring external service providers, Bun said, noting a sudden spending shift from <a href="https://www.techtarget.com/whatis/definition/CAPEX-capital-expenditure">Capex</a> to <a href="https://www.techtarget.com/whatis/definition/OPEX-operational-expenditure">Opex</a>. The cybersecurity company he worked for prior to DirectDefense experienced a 250% year-over-year increase in revenue in 2021.</p> <p>"This weird flip happened where companies were looking to outsource a lot more of their services and their [security] programs," Bun said. "Going into 2022, you saw a lot of MSPs trying to get into the security game, because, obviously, there's an opportunity."</p> <p>New business applications data from the U.S. Census Bureau reinforces the anecdotal evidence of an expanding MSSP population. Census data on professional, scientific and technical services, an industry sector that includes MSSPs and other IT service providers, shows a spike in business applications in 2020 and 2021. In those years, the average monthly application volume expanded to 47,775 from 35,731 during the 2015-2019 period -- a 33.7% increase.</p> <figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/professional_services_business_applications_2015_2024-f.png"> <img data-src="https://www.techtarget.com/rms/onlineimages/professional_services_business_applications_2015_2024-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/professional_services_business_applications_2015_2024-f_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/professional_services_business_applications_2015_2024-f.png 1280w" alt="Chart showing a spike in new business applications for professional services companies in 2020 and 2021 and then a return to lower levels." height="397" width="560"> <figcaption> <i class="icon pictures" data-icon="z"></i>New business applications in the professional services sector, which includes MSSPs, grew rapidly in 2020 and 2021 before leveling off in subsequent years. </figcaption> <div class="main-article-image-enlarge"> <i class="icon" data-icon="w"></i> </div> </figure> </section> <section class="section main-article-chapter" data-menu-title="Dealing with friction"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Dealing with friction</h2> <p>The MSSP influx has resulted in quality issues, as market entrants might lack the experience and expertise to take on <a href="https://www.techtarget.com/searchsecurity/tip/Cybersecurity-challenges-and-how-to-address-them">complex security challenges</a>.</p> <p>"Some of the folks delve into the market but don't necessarily understand the nuance of what it takes to run a proper security program," Bun said. "It's leading to some friction points."</p> <p>Charosky has also encountered that issue, citing value-added resellers trying to become MSPs and MSPs trying to rebrand as MSSPs.</p> <p>"Everybody was trying to capture higher-quality revenue," he said. "That caused a lot of the problems we are seeing. A lot of people were promising security outcomes they weren't geared up to deliver."</p> <p>However, the movement into the MSSP market might have already peaked, Charosky noted.</p> <p>"That curve where everybody wanted to be a security player seems to start to recede a little now," he said.</p> <p>Customers, meanwhile, face their own experience deficit. Many potential buyers have never worked with an MSSP or believe the scope of services offered by service providers is limited to patch management, Bun said. The task is to talk prospective customers through a broader approach to security. DirectDefense's Security Essentials suite, for example, includes identity threat protection, vulnerability management and vCISO services for SMBs.</p> <p>"These customers are often used to someone just logging into their machine and patching it for them," Bun noted. "We have to help the customer understand that this is a different problem set that we are trying to solve for here."</p> <p><em>John Moore is a writer for Informa TechTarget covering the CIO role, economic trends and the IT services industry.</em></p> </section> MSSPs are updating and broadening their technology stacks, emphasizing automation to break security service price barriers and reach new clients in a competitive market. https://cdn.ttgtmedia.com/rms/onlineimages/security_g1141232392.jpg https://www.techtarget.com/searchitchannel/feature/MSSP-automation-amps-managed-service-delivery-opens-markets Fri, 27 Jun 2025 11:25:00 GMT 60 webmaster@techtarget.com