The Growing Number Of Cloud Channels

Advertise on CloudTweaks

The Growing Number Of Cloud Channels

‘C’ LOUD

The big C when it comes to Cloud for the Channel is Conflict. I have been presenting and visiting partners around Europe for the past several years and listening to the opinions and input from vendors, Vars, Resellers, MSP’s, ISP’s and a variety of channels by varying name definitions and one things for sure, the Cloud has certainly stimulated debate.

Whether it be concern, nervousness, confusion or mistrust, a lot of negative feelings have been generated in the channel by the C word. And yet there also are a growing number of channel cloud players, either from the traditional space finding their feet in Cloud solutions or thoroughbred new-born channels who focus only cloud. Take a look at examples such as Cloudmore from Sweden, Outsourcery in the UK, Jamcracker out of the USA, SaaSplaza from the Netherlands and new entrant SaaSMax from the USA and you quickly get a vision of a new opportunity that is presenting itself for a regeneration of the channels to market as we have known them.

We also see traditional distributors building cloud divisions, look at Ingram and Tech Data, both strategizing around cloud and formulating aggregation strategies to keep their hand in as much of the revenue we have known go through as product (software and hardware) sales are combining to be spent on single cloud solutions.

Customers will buy cloud, not because of the term or the hype, but because of the business outcome and benefits it can bring, be they rapid turn it on availability, more resilience, more flexibility in a world of consumerisation and BYOD (Bring Your Own Device) or simply reduced cost of both implementation and on-going usage.

It is therefore important that the channel between the vendors and the customer get to grips with cloud solutions, terminology and the value propositions they can bring and understand what they will need to adapt to in terms of selling, marketing, billing and their value to not only the customer in this new form factor, but also to the vendor. Shying away from this will leave the customer and vendor with no option but to both court and find each other. The more and longer cloud is resisted by the channel, the more pressure there will be on vendors who have heavily invested in cloud to push directly.

As cloud solutions move towards more competitive and flexible billing their will of course be challenges for the traditional reseller approach, but these are not insurmountable if the adoption and adaption to these starts now. Leave it too far down the path and the transition will be painful and like jumping off a cliff, rather than going down a gentle gradient as the landscape changes.

There are already plenty of examples of pure play cloud resellers, oft newly started by employees made redundant and deciding now is the time to make their own path. They are growing fast with low cost overheads, no legacy renewals or worry about cannibalising existing business. Everything is upside to them and they are showing the example that cloud can be a reseller success and drive profitable revenue, different agreed, but why discount because of form factor and change.

I still hear it asked often by Cloud Vendors, do we need a channel at all for cloud solutions and also occasionally this is coming from a person with Channel firmly in their job title, a worrying trend. A belief that the world has changed overnight, cloud can only be sold direct, there is no need for a channel . Yes in retail cloud has enamoured change, and consumers are changing buying patterns, particularly the young. But still there is a place for the brick and mortar retailer. The supermarkets are booming, they have taken on more ranges branching into videos, books, home appliances and even banking and insurance. Being able to adapt is key to survival and surely us as an educated species is capable of doing this when it comes to Cloud.

What we will see for sure is a change of the go to market landscape. Traditional resellers may find themselves having new competitors in this arena. It will not necessarily be one of their reseller peers bidding against them but perhaps a Managed Service Provider (MSP), an Internet Services Provider (ISP) or a telecoms reseller bidding cloud as part of their monthly billing solution set.

The Telco and Xsp type go to market channels are expanding into cloud for many reasons. Key is the fact that they already have the billing models and customer relationships in place. They already have customers who they bill monthly for example for a range of services and much like with mobile phones where the market has expanded from the basic access contract to a variety of additional services such as TXT messaging, video download allowance, web browsing, roaming hotspot service etc the providers are now seeking additional services which they can offer to their client relationships and billing cycles. Contrary to this the IT market in general has been delivered on a supply and pay up front model historically. Cloud is changing the model to one where IT is delivered online in a periodic billing model and the value the channel brings is evolving. Telco’s as part of this have a large base of customer relationships to leverage, the infrastructure and funds to build out cloud services and the billing tools and relationships to handle what customers will expect. IT channels are going to have to adapt to this as they find new competition from the Telco and Xsp space. Also we are likely to see an increase in Communication providers (those provide telephony and the services and billing around this) and theoretically anyone who has a large spread of customer billing relationships, perhaps we will even see cloud services being sold through surprising channels down the line such as the supermarkets (perhaps selling cloud units, storage or credits much like mobile phone credits today). After all, go back 20 years and no one would have believed that you would be banking and insuring through this route to market.

Cloud is here to stay, under whatever name you wish to call it (SaaS, Public, etc) and customers will increasingly become comfortable with its form factor and delivery and as this happens if you as a channel have not given them enough value to buy it though you, likelihood is they won’t. Leverage your customer relationships now, talk to your clients about this new arena, educate yourself and work out the sweet spot for you and execute against it.

By Ian Moyse,

Workbooks UK, Sales Director, Eurocloud UK Board Member and Cloud Industry Forum Governance Board Member

CloudTweaks

Established in 2009, CloudTweaks is recognized as one of the leading authorities in cloud connected technology information and services.

We embrace and instill thought leadership insights, relevant and timely news related stories, unbiased benchmark reporting as well as technology related infographics and comics.

Something went wrong. Please check your entries and try again.

CONTRIBUTORS

AWS S3 Outage & Lessons in Tech Responsibility From Smokey the Bear

AWS S3 Outage & Lessons in Tech Responsibility From Smokey the Bear

AWS S3 Outage & Lessons in Tech Responsibility Earlier this week, AWS S3 had to fight its way back to ...
Tweaking with Application Assessment Tools

Tweaking with Application Assessment Tools

Application Assessment We have all seen the TV commercial where impossible situations are solved quickly by simply pressing a button ...
The Cloud Has Your Data (Whether You Like It Or Not)

The Cloud Has Your Data (Whether You Like It Or Not)

Cloud Cleanup Anyone? Following on where we left off from my last two articles now we shift focus to what ...
Cyber Warfare

Politics 2.0: The Age of Cyber Political Warfare

Cyber Political Warfare Do you remember the last time hackers and cybercriminals determined the outcome of a presidential race? Of ...
Part 2 - Connected Vehicles: Paving the Way for IoT on Wheels

Part 2 – Connected Vehicles: Paving the Way for IoT on Wheels

Connected Vehicles: IoT on Wheels As vehicles become the hottest “thing” in IoT, the automotive, heavy equipment, and machinery industries ...
Security Audits, Cyberattacks and other Potential Front Line Issues

Security Audits, Cyberattacks and other Potential Front Line Issues

Defending the Organization When people talk about security audits in an organization, thoughts immediately go to malware, cyberattacks and other ...
Will 2018 Be the Year Augmented Reality Moves Outside ‘Pokémon Go’?

Will 2018 Be the Year Augmented Reality Moves Outside ‘Pokémon Go’?

2018 Augmented Reality If you’ve never heard of “Pokémon Go” — or at least never had the concept explained to ...
Principles of an Effective Cybersecurity Strategy

Principles of an Effective Cybersecurity Strategy

Effective Cybersecurity Strategy A number of trends contribute to today’s reality in which businesses can no longer treat cybersecurity as ...

NEWS

Toyota to test self-driving, talking cars by about 2020

Toyota to test self-driving, talking cars by about 2020

TOKYO (Reuters) - Toyota Motor Corp (7203.T) on Monday said it would begin testing self-driving electric cars around 2020, which ...
IBM’s cloud, cybersecurity and data analytics business rose 11 percent to $8.8 billion in the quarter

IBM’s cloud, cybersecurity and data analytics business rose 11 percent to $8.8 billion in the quarter

Big Blue back on the attack, analysts cautious (Reuters) - IBM shares surged 5 percent on Wednesday after the world’s ...
Treacherous 12: Top Threats to Cloud Computing + Industry Insights

Treacherous 12: Top Threats to Cloud Computing + Industry Insights

Top Threats to Cloud Computing SEATTLE, Oct. 20, 2017 /PRNewswire/ -- The Cloud Security Alliance (CSA), the world's leading organization dedicated to defining ...

NEWSLETTER SUBSCRIBE

CloudTweaks has been a prominent influence covering cloud technologies since 2009. We have worked and continue to work with a tremendous number of writers, contributors and partners throughout the world – all of whom provide insights into the cloud business community. This information is provided to our Newsletter subscribers on a weekly basis - free of charge.

Subscribe to recieve our weekly collection of Best of Thought leadership, Technology news, Tweaks, Curated resource links, Excluisve promotions and our popular Comic series.

JOIN US

Something went wrong. Please check your entries and try again.