Nothing Has Change Dynamics of the IT Channel Like Cloud

A bold statement, but one that we contend is true. Cloud has not just changed the dynamics of computing, but it has also changed the dynamics of the IT industry forever.

In the old days the IT channel was simple. Vendor Sold to Distributor, Distributor sold to SI or VAR and SI/VAR sold to the end user. In practice there was some blurring of the lines, but at a very simplistic level this is how things worked.

SIs and VARs they could take hardware and software from vendors usually purchased via distributors, wrap their services around these offerings (added value) justify a mark up with this value and develop relations with their customers built on trust and expertise. Again, this is an "ideal" picture, but broadly speaking that's how things worked.

Now fast forward to the revolution we are currently undergoing. A corporate IT manager can sign up directly with Azure or AWS with no need for an SI or VAR and once they do sign up, they will see they can very quickly "spin up" a virtual server on the cloud, raising fundamental questions like "Do I even need to buy that new server from my hardware supplier?" Likewise that same IT manager can sign up online for Office 365 and automatically roll the office suite across his workforce without the need for specialist software distribution expertise from a VAR.

Effectively Cloud changes delivery of computing from provision of hardware and software to provision of a Service, and It increasingly will be purchased, consumed and managed as a service.

So where does this leave the IT channel?

Like with everything change is a time for great opportunity. It is also a time of risk. For those that do not adapt, they will without doubt see their business model become dated and their revenue streams will dry up. For those that do embrace the change the opportunity is real.

SIs and VARs will need to develop deep knowledge in all of the major public cloud providers; understand their strengths and weaknesses, search for localised public providers that can offer benefits (e.g. data sovereignty) to their local customers. This expertise will be valued and sellable. Understand hybrid cloud and develop the skills and partnerships to become a hybrid cloud implementation expert. Develop resale relations with SaaS providers, and perhaps most important become expert in the connectivity options that companies will need to implement as their hybrid strategy grows.

For Distributors it's going to be tougher. Distributors will need to understand that the squeeze on their middleman position for product supply is going to get worse. The demarcation lines between vendor, distributor and SI are going to increasingly blur. This is going to require adaptability and resourcefulness in exploiting their "wholesaler" buying power. This may need to be redeployed in buying cloud resource in bulk at reduced price, aggregate and selling on – in essence becoming cloud middle men

This topic is hugely complicated and how to adapt requires thought, knowledge and understanding. We will be discussing this subject at a session moderated by Data&Storage Asean  at the Cloud Expo Asia. The Panel will consist of Channel Experts who are managing this change right now and we will delve deeper into how that change has to happen. The event takes place in Singapore at SunTec Convention Centre on 29th & 30th October. To find out more about the cloud expo - CLICK HERE