subject: Cloud Computing casting a shadow on revenue stream for Channel Partners [print this page] Cloud Computing casting a shadow on revenue stream for Channel Partners
A lot of clamour is happening around the term "Cloud Computing". In a layman language, Cloud Computing defines the mechanism of renting the software instead of getting it installed practically on the machine which is accessing the software.
Current Scenario:
The vendors have slowly and gradually started embracing the Cloud Computing as a tool to optimize the resources and lower down the IT related costs. The acceptance of the technology is bound to grow by leaps and bounds; it is being suggested that 2012, the market for cloud will increase to $126 billion marking an increase of 28%. Moreover, it is likely that 20% of businesses will migrate to the platform by that time.
In spite of the unending chatter happening around Cloud Computing and media hubbub; the technology is still in its infancy. The technology is projected to grow multiple folds but for another six to eight years, it will be in budding phase.
Trajectory Ahead:
Despite of many driving factors towards adoption of cloud computing as a quintessential part of IT infrastructure, money seems the prime. The investments, deployment of massive IT services inhouse and many more would reduce the expenses drastically.
The list is long for the benefits that businesses can actually reap from Cloud Computing but risks are no exception. Although it is a win-win situation, however offlate we see an emerging threat to the existing resources and revenue stream of the channel partners; owing to the larger partners nexusing with end customers directly. The promising numbers for Cloud Computing would prove bane for channel partners since the revenue stream would get chopped by 12 to 15%.
Things to Worry for Channel Partners:
The constant move to cloud computing is not the only worry for channel partners. There exists something beyond that too. The partners are not aptly prepared to accommodate the transition phase and miss the buoyancy, apt knowledge on the solutions. The need of additional training is imperative for the partners to help the vendors in smooth shift.
While the demand to move to the new platform is pretty high with the vendors, channel partners are not able to cope with the same; reasons are many.
How Channel Partners can reap the latent potential?
Cloud Computing undoubtedly will hamper the growth of finances for Channel Partners but there are latent opportunities that can be exploited for the betterment. Rather adopting an entirely negative approach to the latest wave and let vendors take away the whole chunk, Channel Partners can team up with few reseller and can earn margins though little. The next rescue for them could be the development of cloud solutions and offerings. The decision to opt for any option as per the preference lies only with channel partners; but what is important here is to be a part of the current and clinch the technology since it is more than just a fad.
