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Cloud Channel Summit: Business Models Emerge For Partners

By Jack McCarthy
November 06, 2012    4:09 PM ET

Page 1 of 2

Channel partners looking for a way to build a cloud practice found several possible paths Monday at the Cloud Channel Summit at the Computer History Museum in Mountain View.

Partners heard from a series of cloud deployment veterans who outlined a variety of ways to build cloud businesses, from aligning with a distributor or technology vendor to joining with other partners or accessing cloud services from marketplaces set up by large cloud providers.

Stacy Nethercoat, Tech Data's vice president of software product marketing, said the distributor offers partners a comprehensive package to help them to go to market in the cloud.

[Related: 7 Ways The Cloud Is Changing The Data Center]

"We've set out not just to resell cloud solutions, but to adjust our business model to build a scalable, optimized new model," Nethercoat said. "We see education as an essential part of our strategy to make accessible to partners all the information resellers have to share, as well as training. We also see the need for helping partners see the right solutions."

IBM is also offering partners help in getting to the cloud. Amy Anderson, manager of IBM's cloud computing partner program, said the company will help cloud partners through several programs tailored for different business models.

"What are your business objectives?" Anderson asked. "We help you figure out what would fit best for you."

IBM's programs include Cloud Builder Solutions, Cloud Application Provider Platform and Cloud Service Provider Platform.

Several cloud partners also outlined successful strategies for building their own businesses.

David Hoff, co-founder and CTO of Cloud Sherpas, a Google Apps and Salesforce.com solution provider, said partners have to build new business models to maximize effectiveness in a cloud environment. To take advantage of small business sales, Cloud Sherpas built a separate business unit.

"We have a high percentage of customers under 100 seats, and we struggled early on over how to make a business out of the SMB space," Hoff said. "You have to understand the cost of business and what drives it. So, we built an entirely segmented team that handles SMB business and that is very different from our large segment team."

All Covered, a 15-year-old managed services provider now owned by Konica Minolta Business Solutions USA, has expanded its cloud business by buying smaller MSPs, said Nick Pegley, the company's vice president of marketing.

"We are seeing a consolidation coming," Pegley said. "All Covered has been buying MSPs and attaching cloud services."

NEXT: Cloud Marketplaces Gain Traction

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