Cloud Battles, Debates Dominate Channel-Lands

It’s no secret that everyone wants a piece of the cloud. Ah, but plenty of debate remains over what the cloud means to the channel, and who will eventually dominate this emerging marketplace. And that’s the buzz dominating the Channel-Lands last week.

Google, Microsoft Griping for Government Cloud

It seems Microsoft and Google are bound to remain locked in a pitch battle command of the federal government’s cloud business. When either one wins a deal, the rival seems duty bound to complain or – in some cases – sue to try to capture the business.

Lee Pender of Redmond Channel Partner has done a great job of tracking this tit-for-tat between Google and Microsoft. The latest volley came with the USDA awarding Microsoft a contract cloud email services; to which Google immediately lodged a complaint saying it wasn’t even aware a bid was open.

Microsoft also is complaining about Google’s big government cloud win at the General Services Administration. As Pender reported, GSA changed the bid requirements that all data to be stored domestically, and that allowed Google to win the deal.

Of course, Google wins the complaint battle – it sued the Department of the Interior awarding a contract to Microsoft, stating the bid requirements locked out Google and its reseller partners.

More than bragging rights are at stake for Google, Microsoft and their partners. The federal government – the world’s largest consumer of IT goods and services – has taken a “cloud first” position to its future investments. That means an increasing amount of the $80 billion it spends annually will go to cloud services. It’s a pretty big pot to target, and worth fighting over.

2011: The Year of the Virtual Desktop

Vendors and solution providers have watched the growing interest in virtual desktop infrastructures (VDI), as businesses look to either extend the life of their existing PCs or gain security and management benefits that come with virtualized computing. Some vendors actually believe 2011 could be the year of the virtual desktop.

As Channel Insider reported, IBM is looking to capture a fair share of the lucrative midmarket IT business and pushing VDI to improve user experiences, IT manageability and security.

Channel Insider also reported on VMware and EMC’s plans to implement VDI at a hospital in North Carolina. As EMC states, VDI will improve IT operations and enable more resources to be devoted to patient care.

Other vendors are also seeing the VDI uptick. Vendors including Trend Micro, Symantec, Wyse Technology and Microsoft see tremendous growth potential in VDI technology, and see VDI as a means for channel partners to capture new business.

Dell Goes After Compellent, Irks EMC

Data requiring storage continues to grow at 60 percent year over year, making storage equipment and software virtually bulletproof to recessionary pressures. No wonder the major vendors are jockeying for position in the storage market. Dell apparently is trying to recover from the loss of 3PAR a few months ago by entering exclusive acquisition talks with Compellent. Merging with Compellent would fill a gap in its low- and mid-tier storage portfolio. 

According to CRN, a Compellent acquisition by Dell would likely be the death knell in the long-standing but strained relationship with EMC. Dell has long resold EMC equipment to midmarket and enterprise accounts. EMC hasn’t been happy with Dell since the acquisition of Equal Logic, so an end to this special relationship wouldn’t come as much of a surprise to anyone.

Channel Fearful and Confused by Cloud

You can’t seem to start a conversation in the channel nowadays without someone saying “cloud.” Why? Many people presume that the cloud is causing angst among solution providers who simply don’t know where they fit in the emerging cloud world. Our friends at Phone Plus Magazine confirmed this with a report on Ovum research that found 40 percent of the channel expressed “fear and confusion” over the cloud.

The fear is justified, Ovum says. Its research found that one in five solution providers have shrunk in size and revenue as a result of the changing economic conditions brought about by the cloud.

Many in the channel continue to debate the meaning and definition of the channel. As I wrote in my Channelnomics blog, the channel needs to stop debating the cloud and start engaging in it. It’s not simple, but the most successful solution providers in the cloud are the ones who are developing unique business models and value propositions that level the cloud medium.

That’s not to say cloud discussion isn’t needed. In fact, solution providers should look to the examples of success to find their way amongst the clouds. And there are plenty of forums for these conversations. Nine Lives Media – the folks who brought us The VAR Guy and MSPmentor – this week launched Talkin’ Cloud, a video blog about cloud issues and trends. It’s worth checking out.

Well, that’s all the week’s news from Channel-Lands where all the technology works, all the deals are profitable and all of the companies are above average. If you want to follow me on Facebook or Twitter, feel free to connect. Share your suggestions and news with me at lmwalsh@the2112group.com.