We’ve been hearing a lot about cloud computing these days, and while there’s some confusion about what that actually means, it’s also unclear how that will play out in the channel.
The major tier-one players – including Microsoft, HP, Dell, IBM and Oracle – are all moving toward cloud-based platform and application services. And a slew of new companies are also looking to get a piece of the cloud action. So what does that mean for distributors?
Cloud computing isn’t entirely new. In distribution, it could replace packaged product distribution with delivery of services over the Web – and that’s a trend we’ve already seen with managed services. Still, it does present challenges – as well as opportunities – to the distribution channel.
Tech Data Canada, however, seems to have found a way to get a foot in the door. The distie has signed an exclusive nationwide distribution agreement with Canadian solution provider GeNuit, which will allow resellers to provide their customers with Web-based access to Windows applications.
GeNuit’s Thinworx is a server-based cloud computing solution that allows for centralized management and virtual publishing of applications to any desktop, streamlining support and maintenance for customers with multiple remote locations. This means customers can securely access applications from anywhere, at any time.
Sounds great for customers, but what’s the appeal for resellers? According to GeNuit, resellers can earn higher margins while addressing customer requirements for easier and more affordable tools that connect users to applications. At the same time, they can help their customers reduce costs and increase business agility.
This could be an easy sell in today’s atmosphere of frugality – especially for SMBs that can’t afford to drop tens of thousands of dollars on infrastructure right now. The question is who will provide those cloud offerings.
For disties, now is the time to come up with ways to incorporate cloud into their business. Westcon is another distie looking to become a player in this space and recently promoted its CIO, Bill Hurley, to do just that. Hurley pushed cloud and virtualization technologies internally to help the distie cut costs, and the success of this initiative led to a promotion that makes him responsible for identifying future technologies for the distie – and this includes cloud computing.
Distributors now have to deal with yet another method of distribution – and a virtual method at that – which could require organizational change, perhaps even infrastructure change. And they will likely compete directly with vendors in this space.
But disties could play an important role in training, financing and joint sales and marketing. And, if they’re first to get onboard with cloud, they could see new opportunities in an area that’s expected to see some serious growth over the next five years.