The cloud will not kill the channel, the cloud will not kill the channel, the cloud…
The so-called experts who predicted the demise of the IT services community should be forced to write that phrase 1000 times on a blackboard during a main stage session at the next major IT industry event. No, the cloud has not killed off VARs, MSPs and other providers. It may have moved up the timeline for a few of the firms that were teetering on the brink already, and forced others to tighten business practices and improve their customer value propositions, but most adapted and moved ahead.
That’s not to diminish the challenges the cloud presents to IT service providers. The reduction or complete loss of formerly lucrative software sales has not been easy for most to adsorb, especially when suppliers scaled back margins and, in some cases, dropped their reseller programs altogether for virtual offerings. Add in direct sales vendors and new “born in the cloud” competitors with no legacy transformation costs, and one can see why some were suggesting the end of the road was near for the channel.
But predicting its fatal impact was short-sighted and overlooked a key strength of the community: SMB customer relationships. Technology remains a daunting and confusing challenge to many business owners. While the cloud may have simplified the implementation process and expanded remote options, it can still be a complicated endeavor for non-techies. Even entrepreneurs with a decent comprehension of IT understand that their time and efforts might be better invested doing other things in their businesses. Should they spend hours setting up new applications for all their employees or waiting on the phone to resolve a vendor issue?
Vision is an even bigger challenge for the SMB. It’s pretty easy to go online and sign up for an email account. But does that person know which cloud options work best for smart phones and tablets, and how to link all their devices and ensure the appropriate records are retained and properly protected? A good channel firm does. Better yet, most providers will take a step back to understand their business needs and current infrastructure capabilities before suggesting any potential solutions.
New Roles in the Virtual Environment?
Despite the early naysayers’ predictions, the channel has become an invaluable part of the cloud’s growing success in the SMB. IT services providers are the eyes, ears and hands of the small business community and the vendors that ultimately supply these virtual solutions. They assess the environment and architect options based on their customers’ long-term organizational goals, often working with suppliers to customize programs and resolve issues. That consultative role is invaluable to small and mid-sized businesses, even those with their own IT teams. An outside review
And their role in the implementation and configuration process for individual end users is often the key to cloud success. Of course, many providers also ensure employees on how to use those tools, either conducting hands on or virtual training themselves or in collaboration with trusted partners. This is a responsibility some channel firms overlook, and their clients’ ROI and satisfaction is often affected. Employees may waste time figuring out the latest features, or they use just a portion of the solution’s overall capabilities. Complaints about the cost and complexity come next.
CompTIA’s 2017 IT Industry Outlook report highlights another major channel opportunity. With the number of cloud suppliers continuing to escalate and mammoth organizations like Amazon Web Services leading the way, picking the right vendors and solutions is getting ever more complicated. Where should a small business start? With so many potential solutions, integrations and relationships, how can they expect to handle it all?
The answer, of course, is to outsource those vendor management responsibilities. Channel firms are perfectly positioned to act as the liaisons between their customers, end users and their cloud suppliers. Some VARs and MSPs jumped into this opportunity early on by helping their customers navigate the cloud ecosystem in search of the perfect solutions and relationships, or lending a hand when self-procurement or provisioning went wrong.
Many entrepreneurs have no idea whom to call, nor the patience to find out. That’s usually a no-brainer channel firms. It’s part of their daily routines and, in many cases, the relationships are already established. So why not make a little profit off that expertise while solidifying your value to customers and prospects?
If cloud vendor management isn’t listed on your service line card, or included in your managed services bundle, consider making it a value add when renewing contracts or using it as a differentiator for securing new business. It can mean a lot to your SMB clients.
Brian Sherman is Chief Content Officer at GetChanneled, a channel business development and marketing firm. He served previously as chief editor at Business Solutions magazine and senior director of industry alliances with Autotask. Contact Brian at Bsherman@getchanneled.com
