https://www.channelfutures.com/wp-content/themes/channelfutures_child/assets/images/logo/footer-new-logo.png
  • Home
  • Technologies
    • Back
    • Analytics
    • Artificial Intelligence
    • Cloud
    • Data Centers
    • Desktop
    • IoT
    • Mobility
    • Networking
    • Open Source
    • RMM/PSA
    • Security
    • Virtualization
    • Voice/Connectivity
  • Strategy
    • Back
    • Best Practices
    • Business Models
    • Channel 101
    • Channel Programs
    • Channel Research
    • Digital Transformation
    • Diversity & Inclusion
    • Leadership
    • Mergers and Acquisitions
    • Sales & Marketing
    • Specialty Practices
  • MSSP Insider
    • Back
    • Business of Security
    • Cloud and Edge
    • Endpoint
    • Network
    • People and Careers
    • Training and Policies
  • MSP 501
    • Back
    • 2020 MSP 501 Rankings
    • 2020 Hot 101 Rankings
    • 2020 MSP 501 Report
  • Intelligence
    • Back
    • Our Sponsors
    • From the Industry
    • Content Resources
    • COVID-19 Partner Help
    • Galleries
    • Podcasts
    • Reports
    • Videos
    • Webinars
    • White Papers
  • EMEA
  • Awards
    • Back
    • Excellence in Digital Services
    • 2020 MSP 501
    • Top Gun 51
  • Events
    • Back
    • CP Conference & Expo
    • Channel Partners Evolution
    • Channel Evolution Europe
    • Channel Partners Event Coverage
    • Webinars
  • Channel Mentor
    • Back
    • Channel Market Intelligence
    • Channel Educational Series
Channel Futures
  • NEWSLETTER
  • Home
  • Technologies
    • Back
    • Analytics
    • Artificial Intelligence
    • Cloud
    • Data Centers
    • Desktop
    • IoT
    • Mobility
    • Networking
    • Open Source
    • RMM/PSA
    • Security
    • Virtualization
    • Voice/Connectivity
  • Strategy
    • Back
    • Best Practices
    • Business Models
    • Channel 101
    • Channel Programs
    • Channel Research
    • Digital Transformation
    • Diversity & Inclusion
    • Leadership
    • Mergers and Acquisitions
    • Sales & Marketing
    • Specialty Practices
  • MSSP Insider
    • Back
    • Business of Security
    • Cloud and Edge
    • Endpoint
    • Network
    • People and Careers
    • Training and Policies
  • MSP 501
    • Back
    • 2020 MSP 501 Rankings
    • 2020 Hot 101 Rankings
    • 2020 MSP 501 Report
  • Intelligence
    • Back
    • Our Sponsors
    • From the Industry
    • Content Resources
    • COVID-19 Partner Help
    • Galleries
    • Podcasts
    • Reports
    • Videos
    • Webinars
    • White Papers
  • EMEA
  • Awards
    • Back
    • Excellence in Digital Services
    • 2020 MSP 501
    • Top Gun 51
  • Events
    • Back
    • CP Conference & Expo
    • Channel Partners Evolution
    • Channel Evolution Europe
    • Channel Partners Event Coverage
    • Webinars
  • Channel Mentor
    • Back
    • Channel Market Intelligence
    • Channel Educational Series
    • Newsletter
  • REGISTER
  • MSPs
  • VARs / SIs
  • Digital Service Providers
  • Cloud Service Providers
  • CHANNEL PARTNERS ONLINE
 Channel Futures

Best Practices


It’s Time for the Channel to have the “Cloud Talk” with Customers

  • Written by Pino Vallejo
  • January 2, 2017
Anyone who has spent a significant amount of time working in the IT channel has learned how to adapt their business during transition periods.

Anyone who has spent a significant amount of time working in the IT channel has learned how to adapt their business during transition periods. If you look backwards from the cloud we float on today, the early days in the channel had plenty of shakeups – much like what we’re facing here in the cloud era. The channel had to make adjustments caused by mail order, consolidation, the shrinking influence of independent VARs, retail VARs and e-commerce VARs just to name a few. Within these examples, we saw the savvy VARs adjust to the new trends and emerge to take market share once the transition period ended, while others who didn’t adapt fast enough went away, got acquired or ended up selling off their customer base.

Of course the staying power and impact of each transition is shaped by the direction of end-user IT purchasing and deployment decisions. Which is why one has to wonder – is the current cloud transition carrying more momentum and sending larger shockwaves than anything we’ve seen prior? This was certainly the case in 2016, and as we move forward into the New Year, we should only expect this trend to continue and pick up even more steam.   

Today, it’s already widespread knowledge that users are rapidly moving applications to the cloud. While the speed of the cloud transformation is still in debate with a few folks, I’ve come across a common scenario over the last few months that the channel should be acknowledging as they prepare for the upcoming year.

We’re continuing to see customers of all sizes test the feasibility of moving applications or resources to the public cloud. Not all are ready to move critical information, so when that’s the case, the common theme has been for them to choose something small like a SharePoint Online project that they can afford offload to the cloud. And because they’re starting with a small project without hardware or license revenue attached, they aren’t engaging with their usual IT provider. They aren’t engaging because their typical IT providers work on large deals, making a margin and commission on much larger spends on hardware and software – so the customer simply doesn’t bother to ask for assistance from the provider.

Small public cloud projects like this usually run pretty smoothly—even when companies don’t consult a VAR—because it’s easy enough for them to go at it alone on platforms like Microsoft Azure, Amazon Web Services or Google Cloud. However, soon after the initial cloud project is spun up, they recognize that the cost-per-compute model is hard to ignore compared to traditional IT. Because it was easy the first time around, the customer won’t jump to engage their solution provider on the next one. Small cloud projects wouldn’t typically equal a lost opportunity for the solution provider in terms of profit; however, what’s too often getting overlooked is that these smaller cloud projects are opening the door for a more “defining cloud project” for the customer. The problem by this point for the VAR is that when a company has been slowly moving small projects to the cloud, they may have already bypassed the cloud expertise from their traditional provider.

The good news is that there are still some crucial pieces of expertise needed once a company decides to move on with their “defining cloud project.” Securing the cloud, routing access to projects and providing the same availability and control for these applications becomes the goal. This is also the point where things can go awry for VARs that work with predominantly on-premises solutions and consulting motions. Companies are looking for consulting or deployment experience other than that provided from Microsoft or Amazon – they want someone who can engage with them for many years. They want someone with Azure or AWS experience in addition to knowledge of certain applications, perhaps of apps that can be used to secure those environments. So they look for a VAR that fits this description and often come across what is currently being called a “Born in the Cloud Partner.” This could be a cloud partner who is armed with Azure and AWS certifications as well as some core expertise in security and deployment. These solution providers can offer companies the same control, security, access and functionality in cloud that they previously had with their on-premises applications. Instead of cobbling together some on-premises products just to say that they are cloud ready, a “Born in the Cloud Partner” provides solutions already designed for the cloud and shows expertise around them that helps customers feel confident.  

I’ve seen this happen again and again with Fortune 100 and mid-sized enterprises, and guess what happens to the traditional incumbent VAR? As companies rapidly move data and applications to the cloud, the traditional VAR may not even be aware that a migration is going on until after the “defining cloud project” is complete. In some cases, there’s a possibility of losing their preferred spot as the digital partner of record and getting cut out of the purchasing decision. Regardless, large chunks of revenue that normally went into the traditional VARs pocket now flow elsewhere.   

I am a fan of the traditional VAR channel, and I know it will adapt – some VARs faster than others. I also understand how difficult it can be to decide when the right time to invest will be, and why investing too early or too much is a risky endeavor. With that in mind – the message for the channel is short as we head into 2017. End users are moving to the cloud, and now is the time to have the cloud talk with customers, not after they’ve already migrated. Ask them what expertise they need, and how you can align with them before the “defining cloud project” happens.

 

 

Tags: Cloud Service Providers Digital Service Providers MSPs VARs/SIs Best Practices

Related


  • Managed migration
    D&H Extends Financing Terms to Help Partners Amid COVID-19
    Sales through this program increased approximately 85% in the past year to date, year over year.
  • Two people in a data center
    The Benefits of Co-Managed IT for Enterprises in the New Normal
    The need to conduct business from anywhere has made enterprises more technology-reliant. Enter co-managed IT.
  • Business hands together, diversity
    Survey: A Closer Look at Diversity in the Channel Community in 2021
    The survey is designed to gain a deeper understanding of our channel community, amplifying diversity and inclusion.
  • Social media on smartphone, laptop
    Cloud Providers in the Channel Flee From Parler
    Amazon Web Services isn’t the only vendor to cut ties with the right-wing social media outlet.

One comment

  1. Avatar @ITmedic April 20, 2017 @ 7:40 pm
    Reply

    Great article. I had the
    Great article. I had the pleasure of meeting Ezra recently. Smart, knowledgeable guy. It’s time for VARs to take the blindfold off and realize that more and more customers are making the jump.

Leave a comment Cancel reply

-or-

Log in with your Channel Futures account

Alternatively, post a comment by completing the form below:

Your email address will not be published. Required fields are marked *

Related Content

  • Cybersecurity Top Priority Among IT Leaders, AI/Automation Not So Much
  • Microsoft Source Code Accessed by SolarWinds Hackers
  • MSP 501 Profile: Monroy IT Services with a Minority's Perspective on the Channel
  • MSP 501 Profile: Middleground Technologies Reaps Cloud Benefits

Galleries

View all

New, Changing Partner Programs: AWS, Tech Data, Avaya, Verizon

January 11, 2021

Industry Perspectives

View all

The Importance of Being Security-Centric

January 22, 2021

Cyberattacks: Threat Hunters Conquer Unpredictability with 3 Measures

January 21, 2021

The Right Data Migration Tool Helps Schools Move to Cloud During COVID Crisis

January 19, 2021

Webinars

View all

Who’s Behind the Mask? Hacker Personas Explained

January 26, 2021

Your Network Perimeter Has Changed

February 18, 2021

How Managed Hosting Providers Thrive with the Alternative Cloud

February 24, 2021

White Papers

View all

Why Subscription Business Model

January 15, 2021

The Ultimate MSP Guide to Sales Efficiency

January 14, 2021

Eight Reasons Why MSPs Need IT Industry-Specific Sales Tools

January 14, 2021

Upcoming Events

View all

Channel Partners Virtual

March 2, 2021 - March 4, 2021

Channel Partners Conference & Expo

November 1, 2021 - November 4, 2021

Videos and Fastchats

View all

FASTCHAT: How SOAR Eliminates Security Challenges and Elevates Service Provider Revenues

January 6, 2021

Happy Holidays from Channel Partners & Channel Futures!

December 21, 2020

FASTCHAT: How Old, Unpatched Technologies Are Creating New Security Threats for MSPs and Their Customers

December 3, 2020

Twitter

ChannelFutures

Following its acquisition of SAP specialist Pioneer B1, new @SapphireSystems GM reveals "buy and build" growth stra… twitter.com/i/web/status/1…

January 25, 2021
ChannelFutures

.@exabeam, @VulcanCyber, @ntti3, @Vectra_AI, @Lookout and @valtixinc give high marks to @POTUS' federal… twitter.com/i/web/status/1…

January 22, 2021
ChannelFutures

Judge sides with @AWScloud against #Parler; @SADAsystems gets AI-centric board member; @EnsonoIT, @navisite get… twitter.com/i/web/status/1…

January 22, 2021
ChannelFutures

2021 may be the year of the #security-centric #MSP @BarracudaMSP #remoteworking #ITsecurity #dataprotection #RMM… twitter.com/i/web/status/1…

January 22, 2021
ChannelFutures

Adding #AIOps and #AI-driven WANs will help IT administrators move forward, says @MistSystems.… twitter.com/i/web/status/1…

January 22, 2021
ChannelFutures

Microsoft taps @tybryson as corporate VP @msuspartner group @julwhite heading to SAP, @anderson to @Qualtrics.… twitter.com/i/web/status/1…

January 22, 2021
ChannelFutures

#MSPs can inject predictability into #threathunting @Sophos #cybersecurity #ransomware dlvr.it/Rr4ffV https://t.co/Bztc2Yxwvc

January 22, 2021
ChannelFutures

.@RiskBased report shows decrease in #databreaches, jump in exposed records in 2020. dlvr.it/Rr4fcW https://t.co/PYiDMiJFbt

January 22, 2021

MSSP Insider

Newsletters and Updates

Sign up for The Channel Report, Channel Futures Update, MSP 501 Newsletter and more.

Live Channel Events

Get the latest information on the next industry-leading Channel Partners event.

Channel Partners Online

Want more? Find more channel news and analysis on our sister site, Channel Partners.

Media Kit And Advertising

Want to reach our audience? Access our media kit

DISCOVER MORE FROM INFORMA TECH

  • Channel Partners Online
  • Channel Partners Events
  • MSP 501
  • MSSP Insider
  • IoT World Today
  • Webhostingtalk

WORKING WITH US

  • Contact
  • About us
  • Advertise
  • Newsletter

FOLLOW Channel Futures ON SOCIAL

  • Privacy
  • CCPA: “Do Not Sell My Data”
  • Cookie Policy
  • Terms
Copyright © 2021 Informa PLC. Informa PLC is registered in England and Wales with company number 8860726 whose registered and Head office is 5 Howick Place, London, SW1P 1WG.
This website uses cookies, including third party ones, to allow for analysis of how people use our website in order to improve your experience and our services. By continuing to use our website, you agree to the use of such cookies. Click here for more information on our Cookie Policy and Privacy Policy.
X