Ingram Micro UK Director Cloud and Advanced Solutions Scott Murphy has warned that while digital transformation is driving the market only 22 percent of channel partners are ready.
Murphy said that digital transformation is the top priority for most UK businesses – including the channel partners who serve them. And in many ways, cloud technology lies at the heart of the transformation journey.
Ingram asked 250 UK-based cloud end users from a variety of mid-market and enterprise organisations, alongside 50 cloud resellers themselves, compiling their answers into a white paper: ‘The intelligent future of cloud’ and discovered that while there is a huge opportunity out there for channel partners – it’s being lost.
“Cloud is the key enabler of digital transformation, making processes more fluid, streamlined and efficient, and releasing the IT function from having to carry out difficult tasks like housing and maintaining servers. But the cloud is tricky: a business has to be ready and able to embrace it – otherwise they’ll derive minimal benefit from bringing it into their organisation”, Murphy said.
This is where channel partners have a crucial role to play. They stand between the end user and the broader technology ecosystem, where they’re perfectly placed to advise businesses and show them how to get the best out of the cloud, he said.
“An advisor is often needed. Cloud technology is a crowded market, with a dizzying array of options available. Corporate IT departments have to choose between different developers, solutions, and price points, while also considering how the solution they choose will integrate into existing processes and systems, and serve the specific needs of their business. So, it’s no surprise that of the respondents we asked, 58 percent of those who brought from resellers did so because of the additional support offered”, Murphy said.
This represents a huge opportunity to deepen the traditional relationship from buyer–reseller into business–trusted digital transformation partner. But it’s an opportunity that’s being missed.
According to the white paper, only 22 percent of channel partners have the right skills or offering to guide their businesses through decisions relating to digital transformation and the cloud. In other words, more than three-quarters aren’t ready to act as an effective partner for their customers. Resellers who fail to partner with their customer will miss out on the commercial benefits that this partnership can bring.
Murphy said it’s unsurprising that the majority of end-user organisations (53 per cent) say they have struggled to find the right cloud partner. From a reseller perspective, this isn’t even the most concerning revelation to emerge from the white paper. The worst news is that most corporate IT departments prefer to buy their cloud solutions from the developer. Only nine per cent of mid-market and six per cent of enterprise businesses procure their cloud services from channel partners alone.
“This underlines the size of the opportunity being missed. As digital transformation speeds along, the demand for cloud will only intensify: Gartner forecasts worldwide public cloud revenue to grow 17.3 percent in 2019.”
“They need to have a full understanding of cloud technology and the individual products that they are selling – including how they compare to one another. Resellers also have to think about the complex business challenges faced by their customers, so they can be ready to help them find a solution that will suit them exactly. And it’s not just about making decisions: increasingly, channel partners and managed service providers are being asked for help with cloud implementation and customisation.”
Digital transformation is the top priority for most UK businesses, but the top priority for channel partners should be seizing the opportunity presented by the cloud. To start, they need to equip themselves with the right offering and educate themselves on the challenging decisions their customers face. When channel partners are ready to take on their role as advisors and guides, the benefits of the cloud will open up to all businesses.
