Do you need to make a cloud investment?
Submitted by IBM Channel on
Do you need to make a cloud investment? The short answer is probably yes.
In a few short years, cloud computing and software as a service (SaaS) have forever transformed the landscape of information technology. The structural transition from traditional models of the sale of products such as on-premises software to the sale of SaaS has begun in all of the major software, hardware and telecommunications companies in primary markets around the world.
Sixty to eighty percent of CIOs have some sort of cloud adoption plan for 2016. The market growth and industry restructuring changes forecasted by IDC, the market research establishment, predict 25 to 35 percent compound growth rates in the worldwide markets for cloud and SaaS solutions into 2016. For example, many industry analysts are projecting that the aggregate size of the cloud computing economy may generate USD200 to USD250 billion in economic activity, amounting to almost 20 percent of the global IT spend.
The changes that SaaS business consulting firm Channelcorp is seeing in the industry are not transitional in nature; in fact, the changes are the most significant structural changes they have seen in more than 25 years consulting to resellers, distributors and vendors. Hardware and software businesses will never be the same again. The cloud and SaaS-driven changes are basic in nature and require structural changes by those that sell into the new environment.
Why think about cloud-centric growth and investment?
Because as a businessperson, you cannot afford to miss structural changes in your industry. The cloud and resulting recurring revenue-driven opportunity is one of those fundamental changes that only come around once or twice in a businessperson’s career. It needs to be understood and a business plan must be created to drive the transition to compete in the new environment and reap the rewards.
Why one cloud vendor over another?
Many investment options confront resellers of transaction-based offerings such as on-premises software solutions. The decision to go with one vendor of cloud solutions over another is one such investment opportunity a Business Partner must make once a cloud/SaaS decision has been made. Many variables come into play in this decision, including your prior experience with the vendor as a partner, choices of business model, the design of the incentive programs and the SaaS portfolio.
Three key questions to ask yourself:
- How much will you need to invest?
- How long will the investment take to pay back and what will the return on invested capital look like 36 months out?
- Do you know how to make money with the vendor?
Get ahead of the competition with cloud solutions to help your clients make faster and better business decisions with total visibility and control.
More than 1,000 IBM Business Partners have started their XaaS transformation journey and are SaaS Entry-certified. By becoming an IBM Business Partner, you too can choose the business model that is right for you here to provide your clients with choice and flexibility of hosted, on-premises or hybrid models.