Intermedia's Eric Martorano On Pockets Of Cloud Resistance In The Channel

What causes them to maybe say "I don’t know if I'm going to turn over a healthy profit with the cloud?"

I think a lack of understanding is part of it. Another part of it is that people might dive in and say "Yes, were moving into the cloud, but it's not profitable." And the reason is that they're typically just reselling Office 365. so they're not doing anything different.

So these partners who say "Gosh, I don’t know how to be profitable," it's because [they have] taken a cloud solution and all [only applied their] existing business models on top of it, And [if you] historically were a reseller, you're still a reseller; you're just now a reseller of a cloud solution. You haven't moved to the cloud; all you’ve done is resell a cloud solution where there's no profitability.

What you have to do is try to find ways of adding value on top of that cloud solution, or integrating with that cloud solution in some way, shape or form. And that's where I think a lot of the partner community - a majority of the partner community - is facing this profitability challenge.