The transformation to a Cloud-e Mid Market Model

The Cloud has been the most talked about service I can recall in my entire selling career.  What also fascinates me is the wide variety of definitions used to describe this offering; from IBM to Sun Guard to the MSPs of the world, all totally defined Cloud to suit their specific offering.

If a Partner has gone to market using the “product based method” and the Cloud requires discovery and a business conversation, what result or outcome will be achieved?  To add fuel to the fire what if the customer interprets Cloud to suit his or her specific outcome and the stated problem is different than the partners’ definition?  The typical partners that have sold hardware are shoe horning what they perceive to be the best solution, regardless of need.  The customer always has specific needs but be prepared that our customers white wash their needs in the term CLOUD.  Talk about disconnect; “Houston we have a problem.”  The outcome is bound to be out of balance.

What I would like to focus on is how this CLOUD THING will affect us all and what our business will look like in two years.

To start, companies that resell technology in the channel have deep roots in products and product knowledge that have awarded large revenues and profit in years past.  This model has and will continue to shrink  by innovation; which causes lower pricing and de-mystifies the need for a person to install it.  Cloud and related offerings is dependent on customers’ needs. The gap between the two is wide.  The channel as we know it will rearrange. Those companies that embrace the outcome based model will survive.  The effect will drive re-occurring revenue to the bottom line and since cash flow is greatly improved, the insolvency dissipates and the re-birth begins.

I have heard this stated many times “Doing the same thing over and over and expecting a different outcome, is the first sign of insanity”.  Cloud, in my opinion, will be the line in the sand of change for those of us that embrace a new model.  A model based on customers’ needs.

Outcome based!
Enjoy!

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