ChannelTrends: Clearing up the Cloud Business Model

By now, just about everyone has been exposed to the benefits of Web-based computing. From the non-stop radio and television advertisements from cable and phone companies to the personalized communications sent out by massive direct and indirect sales providers, the message is getting out. With a virtually limitless number of advantages for the business community, cloud services adoption continues to grow exponentially each year while its impact on the channel makes similar gains. After all, Web- ...

By now, just about everyone has been exposed to the benefits of Web-based computing. From the non-stop radio and television advertisements from cable and phone companies to the personalized communications sent out by massive direct and indirect sales providers, the message is getting out. With a virtually limitless number of advantages for the business community, cloud services adoption continues to grow exponentially each year while its impact on the channel makes similar gains.

After all, Web-based solutions create greater workplace flexibility, reduce capital expenditures and minimize the downtime required for updates and maintenance. The nature of cloud services virtually eliminates economies of scale for customers, so the smallest mom-and-pop store can enjoy the same computing experience and business benefits as the largest enterprise organization. It equalizes the playing field for SMB organizations, a segment where most solution providers hold a distinct competitive advantage over their larger direct-sales brethren.

That’s a major reason why VARs and MSPs must become cloud specialists. With the growth of mobility devices and the remote workforce, their customers need Web-based business systems to maintain their operations and attain their organizational goals. Successful solution providers understand the industry needs of their clients, and work hard to comprehend community-specific issues and opportunities that will have an effect on their customers’ short- and long-term objectives. By combining that knowledge with a solid cloud expertise, IT service organizations will be better positioned to compete with current rivals and minimize the threat from phone and cable companies that are entering the fray.

So what does it take to gain those critical cloud proficiencies and adapt solution provider organizations so they can capitalize on this quickly changing new business model? The transition from traditional software sales to Web-based services is similar to that experienced by those shifting from break-fix to managed services, with greater emphasis on proactive support and management. The relationship between client and solution provider must become more interactive, with frequent discussions pertaining to current and future customer needs, and satisfaction with existing services and areas they can improve.

A reactive service approach doesn’t cut it in today’s business environment, where the cost of downtime and lost revenue is scrutinized to the ninth degree. A solid return on IT investments is just as important as the money spent on new employees and equipment, and the implementation of cloud services can help companies minimize their cash outlays and the associated risk. It’s easier and less costly to switch out poorly performing cloud services than it is to bite the bullet on an inadequate software purchase.

The transition to a proactive sales and service approach can be a bit harrowing for traditional software resellers, requiring significant change across the entire organization. The technical staff may require additional training and marketing will surely have to revamp its messaging. Of course, the most significant changes occur within the sales and management teams, as well as other employees who interact with clients on a regular basis.                  

In order to help solution providers make this transition a success, members of the CompTIA Cloud/SaaS Community have been working hard to assemble a variety of educational programs and business-enhancement tools. Several of these IT channel-specific sessions will be presented at ChannelCon, with each course lead by experienced cloud professionals with their own best practice tips and examples. The conference agenda includes:

  • Pre-event Workshop: CompTIA Executive Certificate in Cloud (Foundations).
  • Cloud Executive Certificate, Quick Start to Tackling Cloud Security Concerns CompTIA Executive.
  • Certificate In Cloud (Intermediate): Must complete all three courses to receive the certificate.
  • Online Executive Certificate in Cloud (Intermediate) Capstone Session: Requires successful completion of e-learning courses one through three prior to ChannelCon.

For those who can’t make it to this year’s conference, CompTIA offers a number of other cloud practice building education and training materials. Each of these member-designed resources will help solution providers add some clarity to their cloud business model to improve their profitability and enhance the odds of their long-term 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 senior director of industry alliances with Autotask. Contact Brian at Bsherman@techsuccesscommunications.com.

Email us at blogeditor@comptia.org for inquiries related to contributed articles, link building and other web content needs.

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