Last month, InformationWeek ran a two-part series loaded with valuable advice for VARs looking to take advantage of new opportunities now available in Cloud computing. It’s a hot topic in the channel because, as Michele Pepe-Warren, who penned the series, points out:

“Channel experts and advisors have been encouraging VARs to move from product sales to solution and services selling for quite some time now. Cloud computing is just another impetus for change.”

But, how should VARs pick and choose among the variety of Cloud computing options offered today? Are there specific guidelines that can help you evaluate Cloud vendors so you can zero-in on the ones that will best enable you to capitalize on the Cloud computing trend? To help answer those questions, Michele offers six useful tips, presented here in bold:

• Think in terms of solutions, not products. Or, in other words, embrace the ways in which the channel is changing. Michele recommends steering towards services and consultation, rather than licensing and subscription sales.
• Think “and” and not “or.” These days, VARs can offer customers a wide range of solutions, including both hosted (Cloud) and in-house infrastructure and applications. Hybrid models, in particular, provide customers adaptability while often offering peace-of-mind, too. Remember: Not everyone wants all services hosted; many are looking for solutions that combine on-site and off-premise options.
• Extend the solution. VARs can provide customers with the flexibility that most Cloud vendors lack, so use that to your advantage. Meet your customers’ current needs, but plan to integrate additional functionality down the road. Again, place the emphasis on solutions, not products.
• Capitalize on economies of scale. Michele cautions that business conducted “in the Cloud” is bound to be a bit different than the business you’ve grown accustomed to over the years. That means you may need to shift your thinking to accommodate faster deployments, smaller deals but recurring revenue and new collaborative partnerships.
• Look for a channel-friendly vendor. This is a great tip because it underscores the importance of a robust relationship between VAR and vendor. The Cloud vendor you choose will become one of your most critical suppliers, so be sure to thoroughly vet all candidates. Look for a proven leader with superior technology, experience and a winning track record. In addition, be certain the Cloud vendor you choose is ready, willing and able to develop a healthy working relationship with you –one that will include not only technical expertise, but business support, as well.
• Adjust your business model. In order to optimize your opportunities in the Cloud, Michele says you may have to make some changes to your business plan, such as preparing for a different cash flow or even creating a separate organization dedicated to your Cloud business.

That’s a great list, and I highly recommend that you read both parts of the series (available here and here). But, speaking from my perspective, I can’t resist adding one more piece of advice that I think is critically important:

• Take advantage of Cloud solutions that exist outside of your region. These days, many VARs are considering options to offer customers Cloud and/or hybrid data backup and storage services. Finding Clouds that reside beyond your regional service area can provide even greater protection –and that’s a big plus for clients that place a high priority on data security. For some problems, regional services are the optimal solution. But, backup and storage concerns require a different mindset. When there’s a hurricane, flooding, or other catastrophic event in your area, your customers will be able to rest easier knowing their data is secure in another region.

Now that there are such a wide variety of Cloud computing options available, it’s no wonder that some VARS are overwhelmed with finding the solutions that work best for them. If you’re one of those who’s feeling somewhat beleaguered by all the noise in the channel these days, here’s one additional tip: Keep it simple. First, focus on your customers’ specific needs, and then build from there. Taking it step-by-step can go a long way to relieving the confusion –and stress – often associated with changing a business model.

And for VARs looking to take the next step into the Cloud, watch this space as we have some exciting programs for our partners in the works…

Posted by Matt Hutchinson