Beyond Basics: 5 Ways Cloud Is Good For Partners

You don’t need to sell customers on a “trend” toward cloud-based applications and computing. Even small companies use cloud services every month, if only for file sync. When I owned a business, I used an Internet-based application to update tax tables, access accounting software, pay payroll taxes and much more. In fact, those cloud applications were pivotal to the successful operation of the business. Microsoft says 50,000 businesses adopt Office 365 every month, and four out of five Fortune 500 enterprises embrace it as well.  

However, some habits are difficult to overcome, so moving customers to the “next level” of cloud can be a struggle. Businesses like to own assets. There’s familiarity and comfort with buying software in a box, installing it, putting the box on a shelf and knowing it’s always there. And, when it comes to cloud, partners themselves are often in “do as we say, not as we do” mode. That needs to change, and I’ll tell you why in a minute.

From a customer perspective, advancing a cloud strategy can often mean setting up a private or hybrid cloud. In an owned network, security, compliance and performance can be assured. A private cloud, also referred to as a single-tenant environment with hardware, storage and network dedicated to a single user or business, can be expensive, but the additional cost is offset by increased security of information and assured access. A hybrid combination of public and private cloud means the customer decides which resources are shared and which are owned. Applications and network access tend to be shared, while storage and company-specific computing resources remain private or dedicated. Microsoft Office 365 is an example of an app well suited to a hybrid cloud environment. It’s often deployed with on-premises facilities supporting directory services or password synchronization.

Making the Sale: 5 Benefits

The benefits of cloud computing extend from customers to partners. Some are quantifiable (Q), while others are subjective (S) but no less appealing. When making the case, consider how you and customers can:

Q: Increase productivity with fewer people and resources while improving employee access to systems and operational mobility.

S: With productivity improvements, business results can be delivered faster, more cost-effectively and in a way that meets ever-increasing end-user expectations.

Q: Reduce capital expenditures by eliminating or reducing supported servers and other hardware, as well as that shelfware and associated licenses.

S: Freed from three-to-five-year refresh cycles, the business is more competitive and responsive to market changes and more resilient to boot — potential interruption due to storms, fire or other disasters are less damaging.

Q: Future-proof the business by leveraging product and technology advances offered at no or little cost by cloud solution providers.

S: Leverage cloud services to increase strategic options for the business and business decision-makers. Innovations can be applied more quickly and more often to product, processes and personnel.

Also, partners should lead by example — don’t assume that the pendulum of benefits has swung solely in the direction of customers. Partners benefit from the delivery of cloud solutions through:

• The ability to pursue more opportunities and close more business faster. Cloud computing simplifies the sales cycle and service implementation process, thus improving customer satisfaction.
• Streamlining resources. Cloud computing allows partners to employ fewer resources per opportunity by leveraging what the cloud provider offers. Partners can redeploy or reassign people to new projects or functions.
• Removal of geographic boundaries. Partners are not limited to regional sales where physical installs are required. Many cloud applications can be installed and supported using only remote access.
• Sales of monthly recurring revenue products makes it easier to manage cash flow.
• Flexibility. Selling cloud solutions and services increases strategic options for partners. You can be more diverse in products offered and can change them up more easily to match market demand.

CloudRoute and Microsoft are offering a webinar on Dec. 2 specifically to address Building Robust MRR and Improving Margins. David Byrd leads marketing and operations for CloudRoute. Prior to CloudRoute, he was CMO at ANPI, and CMO & EVP of sales at Broadvox.