Industry Perspective: Moving to the Cloud? Do it Right!

Solution providers are constantly being advised to move to the cloud, and as far as it goes, that’s good advice. But simply moving to the cloud isn’t enough.

The cloud offers huge benefits to solution providers and their clients alike. Compared with traditional IT approaches, the cloud is faster, easier to scale and more affordable. It’s also good business. In a recent survey conducted by the CompTIA trade association, nearly 60 percent of channel partners said they expect to grow through recurring revenue from cloud-based managed services.

Growth like that leads Ray Tussing, channel director at DiCentral, a provider of EDI supply-chain management software, to say cloud is now “the de-facto standard for most businesses.”

He’s right. Moving to the cloud is smart. But the key is to do it right.

What’s right, of course, will depend on several factors. Your current business and client base. Your level of technical acumen. Even your region and local markets.

One approach is to “go vertical” by focusing mainly on specific industries. That might be determined by your location, such as proximity to financial institutions, government agencies or even specialized manufacturers. It might be a legacy of your past client base; for example, let’s say you’ve worked over the years with lots of healthcare organizations.

Another consideration: Which cloud partner program model is best for your business, direct (single tier) or indirect (dual-tier)? Either can deliver new business. But in general, a direct program offers greater operational efficiency, while an indirect program offers faster time to market.

Microsoft’s Cloud Solution Provider program offers a model that works. A recent IDC study (commissioned by Microsoft) found that successful Microsoft cloud partners enjoy 1.4 times the revenue growth and make 1.5 times more gross margins than others. Partners own the entire customer relationship end-to-end, which helps them empower value-added services, drive multi-service sales, improve their status as a trusted advisor, and enjoy greater efficiency from automation.

Ready to move your business to the cloud? Get more from this related MPN content: