Navigating Channel Conflicts In The Hybrid Cloud

Cloud applications that get to run as close to an Internet peering exchange have the best performance attributes because the amount of latency they experience is less. After all, just because an application is running in the cloud doesn’t mean that the laws of physics have been suspended.

For that reason vendors such as Equinix (EQIX) that provide access to an Internet peering exchange alongside hosting services are starting to thrive in the age of the cloud. This week Equinix announced that the Equinix Cloud Exchange will reach 21 markets in early 2015 and that over 100 companies, including Amazon Web Services (AWS), Cisco (CSC), Google (GOOG), Microsoft (MSFT) and IBM SoftLayer, now participate in the Equinix Coud Exchange.

To make matters more interesting from a channel perspective Equinix just acquired Nimbo, a provider of professional services focused on hybrid cloud computing. The challenge that this creates is that Equinix sells both direct and through the channel. Pete Hayes, chief sales officer for Equinix acknowledges that balancing direct and indirect sales isn’t a simple proposition, but the acquisition of Nimbo will make some much needed hybrid cloud computing expertise available to Equinix partners.

As is often the case with any emerging technology, there’s generally a shortage of expertise available when it comes to hybrid cloud computing. There’s a general consensus that demand for hybrid cloud computing rise significantly in 2015, which because of the latencies associated with wide area networks should push more IT organizations to host applications as close as possible to Internet peering exchanges.

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To make matter even more complex new forms of hybrid computing are emerging. Some IT organizations for security and compliance reasons want to set up a form of hybrid cloud computing where the access compute service running on a public cloud, but their data remains behind a firewall on a local private cloud. Obviously, accomplishing that requires the setting up of a dedicated virtual private network between a public cloud and the local data center where the data is actually stored.

While solution providers may have a fair amount of private cloud expertise, Hayes said that via Nimbo many of them can now access Internet peering exchange expertise that previously would have required them to directly engage a telecommunications carrier. Obviously, solution providers can opt to do that. But historically, there hasn’t been much love lost between carriers and solution providers in the channel, so when it comes to hybrid cloud computing the odds are good that most solution providers would prefer to keep their options open.