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While the IT industry is no stranger to dynamic change, few innovations have had such a transformative effect as the arrival of the cloud. This technology is an arguable necessity for developing businesses of all sizes, so the opportunities for those providing cloud solutions are clear. However, Microsoft has recently raised the requirements for acting as a direct reseller, driving many of these providers to transition to the indirect business model. Profitability is still high, but the presence of third-party middlemen can drive prices up, decreasing customer attraction and lowering the bottom line. The cloud is here, it’s just a matter of who can adopt, adapt, and administer cloud solutions better that the competition. Regardless of the provider, all Cloud Service Providers (CSP) offer some form of on-demand self-service, a degree of measured service, and access to broad network access. With fierce competition throughout the cloud, both direct and indirect tiers, victory goes to the CSP that demonstrates flexibility, trustworthiness, and competence in delivering on promises made to the customer. According to our specialists, some potential challenges that all resellers can relate to are:
- Automation: When dealing with customers on a subscription basis, data can accumulate extremely quickly. As many solutions are compiled through per-second usage, even sizable accounting departments can be buried under the numbers. Having access to a solid automation engine solves these issues immediately.
- Customer Retention: Cloud technology is, by nature, flexible. This means that customers will always have the option to change providers, scale their solutions, and search elsewhere for better deals. So, providing added value, relatable human connection, and a user-friendly platform are all essential.
- Business Model: Subscriptions and monthly recurring revenue systems are replacing the traditional sale with annual renewals. This means that there can be less money immediately upfront, so business strategies must reflect these changes and move to secure future revenue flows, rather than putting all their proverbial eggs in a single basket.
- Marketing: While many people working in the cloud industry are extremely competent in technical matters, reaching customers and fostering lasting relationships can be a different matter. Modern companies must utilize strategies that capitalize on the developing market landscape, rather than depending on the tried-and-true systems of the past.
- Staying Current: One-trick ponies don’t last long in the crucible of modern business. All technicians, salespersons, managers, etc. must continually update their knowledge to remain competent in the eyes of customers, who are themselves increasingly more informed relative to technical matters and their own needs.
Regardless of whether your company would like to remain a direct or indirect reseller, transition from direct to indirect, or start a partnership to begin acting as an indirect reseller, we’d be thrilled to be a part of your solution. Our wealth of industry experience coupled with an award-winning Cloud Commerce Platform makes for a stellar, stable combination in a demanding, flexible field. Retain your autonomy by determining pricing at your own preferred margins while our automation engine makes quick work of adjustable monthly recurring revenue. Providing an easily understandable purchasing process reels in customers as self-service and reporting functionalities increase retention and reinforce the human connection.
We’d love to get in contact. Please start a conversation by reaching out to one of our experts.
