The cloud-computing boom is bad news for channel organisations, according to analyst firm Frost & Sullivan. At a media trends briefing in Sydney yesterday, analyst Arun Chandrasekaran said cloud computing squeezed resellers from both ends: software vendors offering SaaS were cutting into boxed application sales, while the …
There's never any fat in a commodity market. Probably won't need anal-ysts either
Cloud to 'shrink channel' - yes and no
At Cloudmore we can see that the channel is already changing, Hardware VARs have been aware of this for some time, Businesses are now very canny at buying from the most cost effective source. However for us the in the industry who happily use the latest and greatest without a thought it is easy to forget about the average business has no idea which services might be appropriate, reliable and good value, and will worry about data security. Indeed we are told that the nirvana for software vendors is to sell via the web. Well let’s have a little think for a moment: how many of these services have achieved real scale using this method, and don't all shout Salesforce, they have one of the most effective offline sales engines ever!
So if the channel moves away from supply and fit, and uses its valuable trusted advisor status to add value to services through advice installation, configuration and training. Software vendors and ISV's will continue to use the channel to reach further down to access that all-important SMB sector and probably use Cloud Services Provider like Cloudmore to do so!
Fat or Fad?
It's easy to fall into line and view the Cloud as providing a brave new world. However, let's be clear about what the Cloud isn't: It isn't a substitute for a business-aligned IT strategy, it isn't necessarily cheaper, and it most certainly isn't a panacea for all ills.
Small and medium sized organisations may find themselves locked into a systems architecture (and even systems themselves) that cannot respond flexibly enough to their business reuirements. Strategy isn''t about capacity and tin, it's about aligning IT with the business. From that perspective the Cloud can maginfy the pitfalls. http://is.gd/opTHDx
Its all marketing hype.
I work for an insurance company here in the states. The cloud isn't even on our radar. Its just not for a multitude of reason, not the least of which is security. Oh, and if you lose connectivity, you don't get any work done.
Partnership Means Spreading the Expertise and the Wealth
Missing from this piece and many others like it is any notion of partnership, long-term thinking or industry vision. Abundant is more scepticism and nay-saying about how the industry is fundamentally changed for the worse. In this case Mr. Chandrasekaran pinpoints a loss of maintenance revenue as reason to believe that the sky is falling in on the channel.
It's not so - at least it doesn't have to be.
As a company i365 has approached the proliferation of its cloud storage service a bit differently. By demonstrating creativity and flexibility in our business model we have ensured a healthy balance between the Cloud & technology provider, service provider and end user. i365's interest in a robust channel is evidenced through its EVault Cloud Connected Service Provider programme, which ensures ongoing revenue - made by its partners - include support and maintenance. By designing an all-in price per/GB for license, replications to i365's cloud and sales & marketing we, (vendors and implementers) are playing to our respective strengths.
Further troubling is the notion that SME's just aren't worth the effort. i365's partners are geographically dispersed and come in various shapes and sizes to ensure large installations to small ones are benefiting from enterprise-class cloud storage.