A third of resellers not in cloud

Jan 29, 2013

More than a third of IT resellers do not currently offer cloud services, research finds

A new channel report says 37 percent of resellers do not currently offer cloud services – representing little change since 2010.

The Cloud Industry Forum (CIF) questioned 150 decision makers from IT channel organisations for the report, The critical role of the channel in driving cloud adoption, which was unveiled today at Cloud Expo Europe in London. The research, sponsored by IBM (NYSE:IBM) and conducted in December 2012, drew information from senior decision makers from IT channel organisations including MSPs, technical VARs and Systems Integrators from the UK and Ireland.

Andy Burton, chair of CIF and CEO of Fasthosts said, “Cloud is, at its heart, about enabling transformation. The fact that over a third of resellers still refrain from offering cloud services is significant and leading cloud platform vendors can do a lot to educate, and assist [the] channel in managing their own business transformation.”

The research, which Burton presented alongside Jerry Crossfield, IBM UK & Ireland MSP leader, also states that 83 percent of respondents expect their revenue from cloud services to grow over the next three years, with traditional proprietary IT expected to remain comparatively static.

Meanwhile, 59 percent of service providers offer IaaS, despite only 16 percent of end users approaching implementation without assistance. The survey says channel firms prefer to sell applications or SaaS solutions rather than bespoke / IaaS solutions.

CIF’s research also points to alack of skills as an ongoing concern; 19 percent of respondents cited staff skills needed to sell solutions as a significant challenge, and only a fifth stating they were fully capable of addressing cloud concerns with end users.

Comments Crossfield: “Cloud is gaining momentum in the channel, but this latest research has revealed that the channel’s zeal for cloud doesn’t always match that of end users. It’s vital that resellers can keep pace with end users and find some convergence with their needs and wants, lest they miss out on opportunities for growth.

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