As many organizations have experienced, cloud service offerings have disrupted the traditional Information Technology (IT) acquisition model—and it’s just the beginning. According to Cisco, 59% of cloud workloads in 2019 will be Software-as-a-Service (SaaS) workloads—an increase of 14% from 2014.1 As more IT services migrate to the cloud, resellers, Managed Service Providers (MSPs), distributors and vendors are adjusting operations to thrive in the new cloud marketplace. The most successful businesses of tomorrow are already leading the movement to the cloud marketplace and evolving their business model accordingly by capitalizing on four different opportunities: implementing subscription processing infrastructure, mastering the go-to-market strategy, billing consolidation, and educating end users.
The subscription-based cloud model drastically alters the way end users purchase software and services. One of the largest shifts in the IT channel was made by Microsoft through Office 365—which is used by more than 1.2 billion people—when the company transformed its offering from traditional licensing to monthly seat subscriptions. Rather than purchasing a seat once every few years, businesses are now purchasing on a monthly basis. Processing this significant increase in subscription volume can be challenging if resellers and MSPs don’t have the appropriate processes and tools in place.
In my experience, working with our partners worldwide, we’ve learned that many are concerned about how to be profitable in the cloud marketplace. While many of the problems we’re solving today focus on developing a business model that can support and migrate to the cloud, it’s equally important to focus on building one that can sustain success over the lifetime of the customer relationship.
As identified, managing and processing subscription orders is key to developing a sustainable cloud business that can handle the increased volume of orders. Simplifying the financial process offers dual benefits for internal accounting and customer billing. Successful MSPs and resellers should partner with IT distributors who offer the infrastructure required to process and consolidate the billing process.
Successfully optimizing your business for cloud success is just the beginning. to ensure success, you need to have the systems and infrastructure in place in order to offer increased support and education your end users require with cloud computing. This will further position your business as an IT authority to existing customers, while giving you a competitive advantage over those who haven’t added cloud services.
At Tech Data Cloud, we offer the tools to help you succeed in cloud computing. Engineered to help you preform, we are passionate and focused on empowering our MSP and reseller partners as they implement cloud services—offering an array of technology workloads, education, training, services, tools and more. If you are interested in learning more about Tech Data Cloud, please visit us at www.experiencetechdatacloud.com to see how we are helping IT solution providers thrive in the cloud marketplace.
Nethercoat leads Tech Data's TDCloud business unit, which is dedicated to the adoption of cloud computing and the enablement of solution providers to build a profitable business through a recurring revenue model. A 20-year company veteran, Nethercoat is responsible for TDCloud's organizational structure, strategic direction, business development, sales and marketing. Recently, she was named to the seventh annual MSPmentor 250 by Penton Technology Group, which identifies the world’s leading Managed Services Provider (MSP) executives, entrepreneurs, experts, coaches and community leaders. As a result of her efforts in 2014, Tech Data was ranked No. 21 in the Talkin' Cloud 100. In 2009, Nethercoat was named to CRN’s Power 100 Women of the Channel list. Most recently, CRN named Nethercoat to its 2015 Channel Chief list