- On June 18, 2019
‘The Cloud’ is an extremely vague term. Lots of people still aren’t sure what ‘cloud technology’ or ‘cloud computing’ is, let alone what it means for them, their company, their channel and their partners.
If you still think ‘Moving Channel Partners to the cloud’ still involves shooting them out of a large cannon, this might just be the article for you.
The Cloud model has been around for a few years now, and its rapid expansion in this time has made it a force that’s hard to ignore. Analytical firm Gartner has predicted that the public cloud services market will expand by 17.3% by the end of 2019, to $206.2 billion.
What this means for your Channel:
With the SaaS market thriving, and projected to exceed $112.8 billion by the end of 2019, channel providers will have to strategically adapt if they wish to remain competitive. The market is shifting ever-closer towards the SaaS model, meaning it’s no secret that if you want to future-proof your channel you’re going to have to embrace the cloud model. Be warned – this isn’t without its challenges.
With subscription-based models becoming normalised around the globe, the relevance of on-premise solutions is slowly fading. Many reseller organisations that gain the majority of their profit from on-premise revenue streams, such as hardware installation or support, have seen profits drop significantly in recent years – as SaaS implementations means users can handle many of these support tasks themselves.
This prompts the question – if the future is in the SaaS model, where will the channels’ revenue come from?
Many believe the key to maintaining channel relevance in this era is held within the cloud. Channel experts believe that channel providers will have to focus on staffing their organisations with cloud experts, who are fully qualified to offer the consultative services users will expect from the channel. Customers are expected to turn increasingly to the channel for help understanding and navigating the cloud.
A Smooth Transition is Key:
Selling from the cloud is vastly different to traditional reselling, so it is imperative to establish consultative relationships with your partners. Allow them to provide advice and guidance on how to leverage all the types of cloud services available.
This will probably necessitate a shift in the internal mindset, from selling products to offering cloud-based services and solutions. Many partners have struggled with the transition from traditional selling to the subscription-based model.
Additionally, further training and education may be required if you are to effectively build, then market, a cloud model. Ensure your team and your partners aren’t left in the dust by providing regular training during this crucial transitional period.
Channel Partners that are able to develop and maintain a solid understanding of the cloud will have a better short-term transition, and a head start on long-term results. If you are interested in future-proofing your channel by transitioning partners to the cloud, 8-digital’s cloud experts can ensure your transition is as quick and painless as possible.
Our extensive experience in global channels and cloud management can help you lower costs, capture new customers and implement global programs, all whilst future-proofing your business. Find out more here.