Cloud Computing Could Change The Channel Landscape

“Cloud computing” sounds a bit like something out of a science fiction novel, but in reality it is a return to days gone by. For those of you old enough to remember, as I do, using “dumb” terminals attached to a mainframe — usually an IBM — the debut of cloud computing is a flashback rather than a new invention. But the question today is: How will cloud computing impact the channel?

A few weeks ago, I had the opportunity to chat with Arnie Bellini, CEO of ConnectWise. We discussed the opportunity cloud computing brings to the channel. We started our conversation discussing the February report from Gartner that projects cloud computing will gain momentum in the next few years and evolve toward preferred solution status by 2015. According to the report: “The first phase, through 2011, will be that of the pioneers and trailblazers; the second, running from 2010 through 2013, will be all about market consolidation; the third phase, from 2012 through 2015, will see mainstream critical mass and commoditization.”

Bellini agrees with the overall report and is intrigued by how this high-tech flashback will play out in today’s channel. “We are just going back to the 1970s, back to timeshare days when the servers were centralized and people paid a fee to access that server,” says Bellini. The difference, he says, is that this time around, the costs will be reasonable, information will travel along the Internet rather than leased lines, and it will not be just a handful of giant technology vendors holding the reins. “There are a lot of implications for the channel,” says Bellini, including the likelihood of head-on competition between MSPs (managed services providers) and traditional vendor partners that are expected to unveil cloud offerings in the future. “So, will we resell their solutions or create our own?”

The reason for the debate is simple. With managed services gaining momentum as a business model that ensures recurring revenue, more traditional VARs are creating managed services practices, investing in private network operation centers (NOCs), and archiving/data vaulting locations of their own. With that investment in place, offering cloud computing services to existing clients is a logical next step. “If the service providers decide to offer their own cloud solutions, it will change the landscape,” says Bellini, who considers that an exciting opportunity for MSPs. “We’d like to see more vendor partners step up and work with MSPs to provide cloud products for the channel, because we want to see those relationships continue to grow. That is when both sides win.” Why might strong vendor/channel partner cooperation in the cloud computing space work out in favor of MSPs and other local technology VARs? Because, says Bellini (and I agree), local business owners will always find other local SMBs — MSPs from right down the street — more appealing business partners than national vendors. 

BSMinfo.com