Resellers: Add Cloud Services to Grow Your Business

By Pete Engler

Over the last few years cloud computing services have dominated the Information Technology market, becoming the go-to solution for various products and services. Now that cloud computing is a few years old and customers are beginning to see the benefits of it, the shift toward those solutions is growing at an even more rapid pace. If you are a reseller, this trend will likely mean offering cloud services for your customers, or expanding the cloud-based service offerings included in your portfolio, if you haven’t already done so.

Race to the Top

Many IT products have transitioned into the cloud as a preferred option for customers over the deployment of traditional premises-based solutions. Because of the increasing availability of cloud services from trusted vendors, and the high demand for cloud-based solutions by SMB and enterprise customers, now is the time for you, as an IT services provider, to consider using the cloud as a way to expand your reseller business and increase revenue.

Cloud is Growing

According to Forbes, the cloud computing market is increasing at a compound annual growth rate (CAGR) of 22.8 percent, and this trend is not likely to slow in the next several years. Additionally, the number of new products being introduced into a cloud infrastructure is also accelerating. International Data Corporation (IDC) predicts the number of new cloud-based solutions will triple in the next four to five years. With adoption rates of cloud services growing at such healthy levels the drive for cloud services is not going to let up anytime soon.

Benefits for Customers

Cloud computing and cloud-based services provide many benefits for your customers. One benefit is that cloud offers an easier path to make changes. Many cloud services have the option of month-to-month contracts, making it much easier to add or drop services, or change vendors. Another key benefit is not having a large upfront capital expenditure as you do when purchasing a premises-based solution. Removing this costly barrier to entry is quite appealing to smaller organizations and new businesses that may have more cash constraints. Conversely, a key pain point for businesses adopting a cloud solution is bandwidth, which can be easily remedied with the wide choices and lower cost of internet services currently on the market.

Benefits for Resellers

For resellers, there are many benefits for selling cloud services. Most cloud services pay monthly recurring revenue (MRR) as long as the customer is enrolled in the service. Monthly recurring revenue that is built up over time offers revenue stability for you, instead of starting the monthly sales cycle at zero. Additionally, as resellers, you now have the option of purchasing cloud services through a simplified online process, making it much easier to buy and manage the services for your end customer. Increased competition and product options also result in better service and prices for the customer, and in faster deployment times and reduced support time. All of these benefits also work in your favor as a reseller or integrator, and ultimately translates into higher margins.

Bottom Line

The need to add cloud products and services to your portfolio of products has never been more important than now. Chances are, if you haven’t already faced a competitive situation where a cloud solution is being offered, you will soon. This is a great time to research and select cloud-based solutions that will benefit the customers you serve.


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