ChannelTrends: Adding Structure to the Cloud

Until recently, the cloud for solution providers was a lot like an NFL draft prospect to their future team: a lot of discussion and tremendous potential, but no tangible results. But it’s really more than just a “buzz word” bandied about by the tech community to confuse end-users and reduce channel margin. Cloud services are finally becoming a significant source of revenue and business growth for solution providers and vendors. It’s become readily apparent over the past few years that there’s a real business model behind web-based service delivery, as evidenced by Microsoft and HP’s recent cloud endorsements.


While Gartner predicts that the cloud/SaaS market will hit $14 billion in annual revenue by 2013, the channel percentage is difficult to tabulate. Solution providers undoubtedly will play a bigger role as SMB adoption increases, from building and offering their own services to reselling those of collaboration partners and vendors. Many factors need to be considered when building and strengthening a cloud practice portfolio, including a variety of continually changing client needs and competitive concerns.


That’s made the CompTIA Cloud/SaaS Community a great forum for solution providers, vendors and other related industry professionals. During their latest meeting at AMM, the member discussions focused on a number of continuing challenges with cloud service delivery—and how to turn those hurdles into true business opportunities. According to Katherine Hunt, director of member communities for CompTIA, “The Cloud/SaaS Community has reached an important turning point and the AMM meeting turned up an excited and engaged group that wants to participate in positively affecting the IT industry.”


Cloud as a True Business Solution    

While economic factors play a big part in driving cloud adoption, successful VARs and MSPs boost its acceptance by focusing on their customers’ true business needs. Recent channel research backs this claim, showing that more potential cloud adopters learn about new services from their accountant than they do from a solution provider. “It’s a lot more about business and not as much about the technology we’re used to discussing,” says John Rice, chair of the CompTIA Cloud/SaaS Community and senior director of partner community at Intermedia. Solution providers who can tap into their customers’ real needs are more apt to be successful with this new service delivery model.


That’s where the cloud model has really matured; offering channel companies a number of complementary service opportunities that can significantly improve their clients businesses. It’s more than simply swapping out software programs for their virtual equivalents. New “value-added” services can improve the capabilities of small businesses, and create new efficiencies that save them both time and money.


Cloud mobility is a great example of that opportunity, backed up by IDC Research’s recent claim that the mobile worker population will reach 1.3 billion by 2015. As more employees work remotely, the need for access to critical business systems and client information continues to grow, but most SMB organizations don’t have the IT resources to support these devices and applications. As the mobile workforce continues to grow, these solutions will become even more critical. Today’s competitive environment demands that businesses employ cost-effective and powerful technologies in their operations, ensuring a high level of productivity without having to make significant investments in their infrastructure.


CRM, scheduling, real-time intelligence and bar-code scanning applications all fit this category – with  some leveraging the features of smartphones and tablets (such as voice, location, and video/picture) to speed delivery and maximize the user experience. Solution providers with the proper skills can build and support these services on their own, or partner with vendors and other VARs to offer a high-value portfolio of applications.


Of course, one obstacle to cloud adoption is also an opportunity for the IT channel. The security of web-delivered applications continues to be a concern for the business community and, despite advances in network and data protection, it remains an impediment. During the Cloud/SaaS meeting keynote at AMM, Wendy Frank, president of Accell Technology, identified a number of points that solution providers need to consider when evaluating the security needs of their clients. Vertical markets play a key role, as many industries have their own protection standards, regulations and compliance concerns. By implementing a client-specific security policy that addresses cloud concerns, solution providers can improve adoption rates and their customers’ long-term success.


The CompTIA Cloud/SaaS Community is actively engaged in creating a number of resources to help improve channel opportunities for virtually delivered solutions, including educational materials, business credentials and other practice-development tools. Interested in joining the conversation? Contact Katherine Hunt at kate.hunt@comptia.org or John Rice at jrice@intermedia.net.


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 Bsherman@techsuccesscommunications.com.