ChannelTrends: Can Solution Providers Compete in the Cloud Environment?

While some may choose to dismiss the various discussions, events and training programs on cloud solutions as hype, there are many more proving that the business model works. Members of the IT channel can be somewhat cautious, but it’s rare for them to ignore business applications that their customers want. And everyone from the smallest mom-and-pop retailer to the largest corporation wants the benefits that cloud services offer, according to respected industry analysts.For example, IDC reports t ...
While some may choose to dismiss the various discussions, events and training programs on cloud solutions as hype, there are many more proving that the business model works. Members of the IT channel can be somewhat cautious, but it’s rare for them to ignore business applications that their customers want. And everyone from the smallest mom-and-pop retailer to the largest corporation wants the benefits that cloud services offer, according to respected industry analysts.

For example, IDC reports that public IT cloud services revenue exceeded $21.5 billion in 2010 and will reach $72.9 billion annually by 2015. That compound annual growth rate (CAGR) of 27.6 percent is more than four times that of the 6.7 percent of the IT market as a whole, representing a large opportunity that most solution providers are finding hard to overlook. Of course, some of those dollars are coming from traditional hardware, software and services spending; so those who don’t get into the cloud solution’s business may find demand waning for their conventional portfolio.

The “cloud or no-cloud” decision is crucial, but it’s just the first step. Creating a service that’s both beneficial to your clients and profitable for your business isn’t an easy task; it requires careful research and, in many cases, some trial and error. Like most activities involved in building and running a successful IT channel organization, the choices are often as numerous as the opinions about which ones to pick.

A number of critical questions have to be answered when moving to the cloud, and numerous decisions need to be made. Should your company specialize in public, private or hybrid clouds, or be capable of providing each for the right client situation? Whether they choose to host these services at their site or manage them in a third-party’s facility, solution providers should implement and follow industry best practices to protect their clients and their own interests. A careful review of SLAs and related contracts is a must to ensure the business is providing (and using) a robust and well-protected solution.

Let CompTIA Help You Develop a Viable Cloud Plan
The latest technologies and services are often the most profitable, especially in the early days when few professionals have the capabilities to support the businesses that are interested in implementing them. That opportunity still applies to the cloud, at least for the SMB community. While enterprise organizations have adopted these solutions over the past few years, many smaller businesses have yet to tap into the power (and flexibility) that web-delivered services offer, but thanks to a plethora of advertising by the telecom industry and large service providers, the demand is certainly growing.

Helping solution providers overcome the training and education hurdles is what the CompTIA Cloud/SaaS Community is all about, and they’ve developed a hearty curriculum for Breakaway 2012 to accomplish their goals. The conference is July 30th to August 2nd at the ARIA Resort and Casino in Las Vegas, with a host of learning opportunities for solution providers ready to make the leap to cloud services (or take an existing practice to the next level). These instructional sessions will provide attendees everything from the fundamentals of building a specialized business unit to the more advanced skills they’ll need to compete. And each is lead by an IT channel expert who understands the unique challenges and opportunities solution providers face. The cloud training sessions on tap at Breakaway include:

  • Cloud Computing Fundamentals: this pre-event workshop is designed to give solution providers the knowledge and skills they need to successfully deliver cloud solutions to business customers and help them recognize the differences from traditional software license sales. Attendees will also learn how to leverage best practices to market and sell cloud solutions and manage ongoing customer relationships.

  • Cutting through the Fog of the Cloud: join a panel of industry-leading tech journalists as they cut through the “buzz” that can confuse a solution provider’s vision of cloud computing. The session’s panelists will objectively share the research, information and stories of success (and failure) they’ve encountered while covering IT channel companies. Attendees will hear how mobility will influence the cloud, the security requirements that affect these technologies, how the user expectations vary between industries, and the best ways for solution providers to navigate their way to success with virtual applications.

  • Cloud Intermediate Module 1: step up your cloud practice with advanced instruction by an accomplished industry veteran.


And, if you’re interested on adding the cloud to your portfolio or discussing how to enhance your existing strategy, be sure to join the CompTIA Cloud/SaaS Community for their quarterly face-to-face meeting at Breakaway (register here). They’ll be sharing the latest research, enjoying some lively industry conversations, and learning how they can tweak their businesses for greater success…

Brian Sherman is founder of Tech Success Communications, specializing in editorial content and consulting for the IT channel. His previous roles include chief editor at Business Solutions magazine and industry alliances director with Autotask. Contact Brian at [email protected]

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