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Channel Partners don’t just need reassurance around cloud business models…

Feb 14, 2011

…they also need a big helping hand to align them and the right programmes and incentives to get them on board.

Cisco seem to be ahead of the other big traditional vendors when it comes to creating a profitable and meaningful cloud opportunity for their channel partners across the board. They have just announced the launch of new range of cloud channel programmes that will enable partners to become cloud resellers, cloud builders and cloud providers…

With the channel representing an increasing portion of vendors go to market strategies – especially in the all important SME market sector – other vendors need to up their channel enablement and commitment to this increasingly important future revenue driver.







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Simon - The channel finds a new direction

With the growth curve for cloud computing practically vertical and set to remain so in 2011, what will happen to the traditional channel sales model?

There are significant channel players who fear they will lose out from the growing demand for cloud solutions. However, the reverse may be true, despite the disappearance of the traditional supply chain. The fact is that cloud computing will create new service-led opportunities for the channel to generate income and help retain their existing customer base. However, change will be necessary and vendors will have to help their partners migrate to a new business model. They’ll need to provide cross-selling and up-selling education and collateral.

Services-to-product-resale revenue ratios for partners will go up in line with the increasing number of cloud computing solutions on offer as partners become less involved in architectural design and implementation and more with managed services consultancy and support contracts.

In this unfamiliar world, channel partners will require new tools and certification programs. Vendor cloud objectives will need to be translated into profitable and relevant propositions on which they can thrive. They’re going to need a lot of reassurance. Are you ready to help them?

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