Intelligent Tech Channels Issue 23 | Page 65

FINAL WORD The introduction of cloud has profoundly changed the way in which businesses buy and consume services and applications. A s little as 10 years ago, the perimeters around different channel stakeholders were much more clearly defined. Whether an Independent Software Vendor (ISV), a reseller, or a carrier/system integrator, you knew your role and how it fitted into the overarching channel network. Cloud computing has changed all that. Whereas previously the emphasis was on the physical, such as loading software onto a server or into a data centre, the introduction of cloud has profoundly changed the way in which businesses buy and consume services and applications. Does this mean that the sale of traditional and physical infrastructures, or the business need for it, is diminishing? The honest answer would be ‘yes’, but that does not mean that the channel is doomed. While cloud computing has certainly created challenges for the channel, the real danger lies in procrastination – doing nothing to leverage the host of opportunities brought by cloud to the channel can be a business’ greatest downfall. INTELLIGENT TECH CHANNELS Issue 23 Brace for impact The most profound influence that the rise of cloud computing has had on the channel is the way in which technology and services are consumed. It’s not so much about a more efficient means to package, sell and deliver the same hardware and software products but rather a business model engrained in the fundamentals of how technology is consumed. According to an April 2018 Gartner report, by 2021 the top five largest categories that will benefit from cloud spend will be Software-as-a-Service (SaaS), Infrastructure- as-a-Service (IaaS), Cloud Business Process Services (BPaaS), Cloud Application Infrastructure Services (PaaS) and Cloud Management and Security Services. It’s therefore no surprise that channel partners such as ISVs have taken a hard knock. Large up-front investments, plus added costs from continual updates to software and operating systems, as well as expensive licensing fees are no longer desirable to customers. Additionally, the inability of many legacy systems to scale is extremely limiting in a business age when data growth is at its highest. By contrast, cloud computing and the platforms on which it operates don’t need specific installations or ongoing maintenance. Cloud-based solutions can be implemented quickly and cost effectively, with little or no hardware costs and provide remote accessibility through the web as well as customisation capabilities in accordance with customer needs. Also, the fact that cloud computing has freed up time and resources to allow customers to focus on their business makes it easy to understand why it has gained such momentum in the channel. The silver lining It may seem as though the channel ‘of old’ is on a one-way journey to becoming obsolete, but it’s quite the contrary. Businesses operating in this space are in a very good position to turn technical legacy challenges into opportunities, but the time is now to leverage these. 65