So, with the cloud revolution well underway, should solution providers assume an agent role, host and deliver their own Web-based services, construct onsite solutions for their customers, or build a hybrid practice encompassing elements of each? The answer is different for each provider, based on a number of client and operational factors, such as:
- Security: Does the customer want to maintain control of all company data?
- Customer business needs: Which solutions and offsite capabilities are needed (mobility, multiple offices)?
- Skills: How willing and able is the VAR or MSP to implement and support each option?
- Capacity: Can the organization scale to offer a variety of cloud options?
- Aspirations: Which model does the VAR or MSP wish to implement and support?
- Investment: Should the organization minimize its capital and training requirements (agent) or commit to a comprehensive cloud practice?
The route each provider takes is most often dictated by specific client needs, with the business’ own operational concerns often taking a backseat. While solution providers have to be mindful of their objectives and profitability, it is extremely hard to prosper if they aren’t providing the products and services their customers demand. Whether or not VARs and MSPs choose to offer cloud services, businesses are adopting them at a staggering rate and that trend is likely to continue for some time. Even after that growth slows, the lack of capital investment requirements will leave a tremendous opportunity for IT channel businesses.
While solution providers may lose some of their prospective cloud clients to direct sales organizations, chances are high that their individual business needs won’t be completely satisfied. Custom implementations and unique integrations are strengths of channel professionals, who typically spend more time understanding each their client’s specific business needs than their direct competitors. By analyzing their customers’ objectives and current systems, they can design, install and support the solutions that will help them meet those goals in the most cost-effective manner.
Direct sales organizations typically offer their own nationally or regionally hosted flavor of cloud, while savvy solution providers add other options for their clients. Some companies would rather take the private cloud route, while others may choose to have the applications securely maintained by a local provider. Both are perfect opportunities for the properly equipped VAR or MSP.
With a little extra effort, solution providers can build a solid cloud reputation and increase their margins well above those following a standard agent model. That doesn’t mean every company can (or should) develop a full slate of web-based applications; it takes the right combination of entrepreneurial desire, skills and client demand to make it work. But for those who are willing and able to make the leap, with a solid business plan and some help from qualified experts, their chances for long-term success are good.
Regardless of the sales model solution providers wish to take, the CompTIA Cloud/SaaS Community is a great forum for solution providers looking to hone their business practices. The group is developing a number of tools and best practices to help providers design and implement an effective portfolio, build a successful brand and improve their operational efficiencies. Rather than going the cloud route on their own, solution providers can leverage the expertise of Cloud/SaaS Community members to avoid the pitfalls of starting a new practice.
In addition to the myriad of professional networking opportunities afforded to participants, the group is actively collaborating to overcome industry obstacles and improve the quality and quantity of vendor-neutral educational options. A number of their initiatives have already been completed, with a variety of web, print and live event cloud training sessions available for IT channel companies.
If you’re looking to establish your cloud brand, or just want to take part in the latest IT channel-shaping discussions, contact member community director Katherine Hunt at kate.hunt@comptia.org.
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 senior director of industry alliances with Autotask. Contact Brian at Bsherman@techsuccesscommunications.com.
