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 Channel Futures

Sales & Marketing


Cloud, Mobile Computing Pressure HP, IBM, Tech Giants

  • Written by The VAR Guy 1
  • August 21, 2013
Check the latest earnings and revenue forecasts from IBM, Hewlett-Packard (HPQ), Intel (INTC) and other technology giants. One thing is clear: Cloud and mobile computing are pressuring traditional IT sales more than ever. VARs must adapt even faster.

The New York Times stated the obvious this evening. And it’s worth repeating: Cloud computing and mobile devices — tablets and smartphones — are pressuring traditional technology giants like Hewlett-Packard (HPQ), IBM and Intel (INTC), among others. So what’s the upshot for channel partners?

Right now it’s BAD to be a technology giant because they are so dependent on aging technology platforms. Savvy channel partners — such as the Top 501 MSPs and the Top 100 Cloud Services Providers — have already shifted their business models. But thousands of resellers and VARs need to wake up and explore additional partnering stategies.

Sound the Alarm — Again

The latest warning came today from HP CEO Meg Whitman, who conceded that HP’s 2014 revenues won’t likely grow. Whitman had previously predicted that the struggling computer giant would lift its revenues next year. She put the blame on poor execution at HP plus weak economies in certain geographies. But The New York Times accurately observed that cloud and online giants like Google (GOOG) and Salesforce.com (CRM) continue to hum along. 

Meanwhile, big technology partners continue to issue a range of warning signals. IBM’s hardware employees are taking furloughs with reduced pay to cut company expenses. Pundits think Big Blue is also looking to sell its x86 server business amid the accelerating shift to public clouds. And Intel is struggling to show mass momentum in the mobile market. The Ultrabook pitch, limited by Windows 8’s poor reception, hasn’t been much of a hit. 

In some ways, Oracle (ORCL) has also been pressured — especially as some customers continue to step away from niche Sun hardware (SPARC) and software (Solaris). But Oracle also is the leading provider of software to most cloud services providers (CSPs) — which means the company’s own cloud strategy is likely performing better than such rivals as IBM and HP. In fact, Oracle itself is a Top 10 cloud services provider, Talkin’ Cloud reported.

Meanwhile, some giants are adapting to the cloud and mobile realities. Lenovo, for one, has successfully pushed into the tablet and smartphone market while continuing to outpace rivals in the PC market. And in some ways, Cisco has pushed beyond its core networking focus to steal market share in the server and converged data center industries.

The Best Partners Adapt

What’s the upshot for channel partners? Check in with the world’s top 501 managed services providers — as tracked by MSPmentor. Then scan the world’s top 100 cloud services providers — as tracked by Talkin’ Cloud.

Study those lists and you’ll notice most VARs, MSPs and CSPs have hedged their channel partner relationships — working with emerging cloud vendors on mobile device management (MDM), business continuity, disaster recovery, business automation, and cloud productivity applications.

Many of those channel partners will show up at upcoming Q3 and Q4 2013 conferences hosted by ConnectWise, Datto and SolarWinds’ N-able business. The VAR Guy wonders if IBM, HP and other technology giants will open their eyes to this new generation of partners — and start serving them more effectively.

Tags: Agents Cloud Service Providers MSPs VARs/SIs Sales & Marketing

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