How can resellers prepare for cloud computing?

Cloud computing is breathing new life into the channel. It will fundamentally change how we do business. Telecommunications providers, supply chains and major IT corporations are using cloud computing to directly interest small and medium-sized companies (SME), who were until now the mainstays of channel business. So in these days of cloud computing, has the channel had its day? Or do the clouds conceal genuine opportunities?

Those that recognise the new trends early and expand their business to include cloud components like Software-as-a-Service (SaaS) will be the winners. With the courage to change and some specific measures the IT channel will be able to score points and use the breath of fresh air that is cloud computing to its benefit – as a tail wind to push its business and spearhead the market.

1.    It’s all about advisory expertise
It’s no longer just expertise in the area of installations and software and hardware skills that count, but also additional services and individual consultancy. System houses need to rethink their services and focus more on their customers’ requirements and wishes. Solution-oriented work in the context of the respective SME's business model should be of more immediate importance. This holds a great many opportunities to develop. But management, too, needs to change its ideas and take up the new topic in its training measures.

2.   Adapting billing models
The IT requirements of businesses are changing constantly. At the same time, the customer wants to stay flexible and only pay for what he really needs. Large one-time agreements are a thing of the past. The channel has to adapt its compensation model and in so doing accept smaller but recurring sales. Rather than sending out a bill to customers every two or three years, they are now being billed monthly for the services actually rendered.

3.   Comparing apples and oranges
The SaaS billing models need to be updated, otherwise comparison with major individual deals will be virtually impossible. But since huge discounts are often granted for more substantial orders, smaller deals with higher margins are often more worthwhile in the end. This needs to be checked carefully. Besides, flexible pricing generally makes the business easier to calculate. 

4.   Extend responsibilities
It is no longer features or licenses that are sold but the solution itself. The way services are billed in the cloud computing business means more invoices. This is why it makes sense to streamline processes and resources in the accounting department especially in order to be able to cope with the new flood of monthly bills.