Channel Tips For Tapping The CloudChannel Tips For Tapping The Cloud

Part 2 of a two-part blog: Yesterday we left off by taking inventory of some of the channel opportunities posed by cloud computing.That's good news, and so is this: Most cloud vendors have given up going it alone and are now ready and willing to work with the channel. But that doesn't mean you're good to go yet. You still have to look closely at your business model and evaluate whether it's going to give you the focus and flexibility you'll need to capitalize on the cloud-computing trend.

Here are some tips from a presentation by The SMB Group at Sage Insights 2010 this past May:

Think in terms of solutions, not products. As I said yesterday, this certainly shouldn't be a novel concept for solution providers. If you've been around long enough, you'll remember when hardware margins evaporated. Now the luster of software sales and maintenance is wearing off as well. The market-research firm advises VARs to steer away from licensing and subscription sales and toward services and consultation.

Think "and," not "or." Today's model is a hybrid of hosted (cloud) and in-house infrastructure and applications. VARs should strive for the role of technology-agnostic advisors and aim to provide customers with a "one-stop shop for on-premise and cloud solutions."

Extend the solution. I can't say it better than The SMB Group did, so I won't: "Tailor solutions to specific customer needs.Capitalize on the growth opportunity to resell, develop, and integrate additional functionality." Fine-tune your knowledge of different vertical markets and provide the flexibility that cloud vendors don't.

Capitalize on economies of scale. Bear in mind that deals conducted "in the cloud" aren't the same as the deals of yesteryear. Remember, you're going to lose some upfront revenue. Adjust your mindset and get ready for faster deployments and smaller deals. Deepening your consultative expertise and shedding some IT and maintenance functions will likely bolster the value you bring to the table in the future.

Look for a channel-friendly vendor. Yes, many cloud vendors have mended their ways, but that doesn't let you off the hook when it comes to vetting your partners. Search for the programs that work best for you. There are almost as many partner programs as there are cloud vendors (well, maybe not that many); ask yourself what's important to you -- reward levels? reputation? participation fees? -- and choose carefully.

Adjust your business model. Again, allow me to quote The SMB Group: "Align skills, metrics, etc., to optimize your opportunity." Be prepared for a different cash flow than the one to which you've become accustomed. Another possibility: Create a separate organization dedicated to your cloud business. That way, you won't have to reinvent the wheel across the board.

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Michele Pepe-Warren was an editor and reporter for CRN and VARBusiness and has 10 years of experience covering the technology channel.