There have been ample opportunities to resell hardware as well as software as more and more companies have started adopting cloud bases systems. There are several processes involved and a few important factors as well that cloud re-sellers need to remember.
Software Resale – Software resale consists of big chunk of VAR cash flow. However, several cloud vendors adopted a comprehensive consumerized sales approach. This approach emphasizes a lot on the simplistic purchasing and selling processes directed to customers. Without the proper hardware set-up along with ancillary services, local resellers have become less important. With time resale opportunities will decline but however, new opportunities will rise.
Hardware Resale – The hardware resale opportunities will also see a decline. Ever since the cloud based systems, the servers are not installed on-premises anymore. This implies that the revenue generated from this would eventually vanish off. Desktop computer sales also become less and at very random and far off frequencies. Since cloud based systems need less memory as well as processing power when compared to the on-premises ones. This implies that the desktop will need less frequent replacement and would automatically get sold at lower prices.
Installation Services – The installation services have become less relevant. Cloud based systems does not require any software installation, therefore this opportunity will cease to exist in cloud computing. There would be still a few installation services like desktop installation systems or even the installation of a new network that would still be in demand. However, the gradual trend indicates that the VARs (Value Added Resellers) would need to move away to make for other opportunities for this type of service.
Integration Services – There will be a decline in the integration services but it is a very gradual process of decline. Cloud based systems need lesser points of integration. However, they provide better control on the way customizations can affect the process of integration. This implies that cloud based apps will get easier to integrate when compared to the on-premises systems. This does not imply that the integration of cloud based systems is easy, but hopefully, that will be so in due course of time.
Training Services – The training services will see a gradual change. It is known that the user interface of a cloud-based system is easier to use, therefore it requires less training. In case of on-premises systems that have more complex UIs, it is important for the companies to provide training services from a local advisor. However, new cloud based systems have an ease because of which the training from a local advisor will no longer be needed. But still, there is scope for sophisticated training in order to keep a hold on the revenue.
Hopefully, cloud resellers would remember the points mentioned and work things out in their favour.
