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Faletra applauded GreenPages, a solution provider cloud computing power, for confronting that sales compensation issue head-on by paying its sales force up front for recurring revenue cloud computing services. "If you're a cloud player, you have to take some risks," he said.
Faletra said the cloud computing services era transformation is making the bond between cloud computing service providers and their customers stronger than the old business model where the bond was tighter between the solution provider and the technology manufacturer.
"The point of loyalty in the old (solution provider business) model was the strategic relationship with the vendor," he said. "Now it is the relationship with the customers. That is a hard thing for the vendor community to come to grips with."
Faletra said the turmoil in the business being wrought by the cloud computing services revolution is driving higher margins for partners that are stepping up and acting as trusted advisor for customers. In fact, he said, UBM Channel research shows that 67 percent of customers feel comfortable buying cloud computing services from a trusted solution provider partner.
"Customers still believe the third party channel is the way to go," he said. "Everybody has an agenda. But the customer just feels a bit more comfortable buying from the trusted partner they have done business with in the past."
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