Solus Network Solutions' Oliver says he expects that Intelisys' cloud muscle will help him move from a 100 percent focus on the carrier business to driving as much as 20 percent of his sales from cloud in the next two years. "It's a natural progression for us now with Intelisys," he said.
Oliver says he expects a company that is spending $10,000 a month on carrier services with Solus could add another $30,000 to $40,000 a month in cloud services. "You always have to look at where the business is going," he said. "You can't rest on your laurels thinking what you are doing today you can do tomorrow."
That eye toward driving next-generation cloud services growth is what has propelled Intelisys to move aggressively into the cloud marketplace.
Andrew Pryfogle, senior vice president, cloud services and complex bids for Intelisys, who is leading the master agency's cloud computing business, said he sees the traction that the company is getting as a "tipping point" in cloud computing-carrier services convergence.
"The way IT spend is happening is changing," he said. "Everything is shifting to the as-a-service model, and VARs realize they have to move quickly to develop a recurring revenue practice. Many VARs see an agency path as a faster, cheaper and lower-risk path to recurring revenue."
One sign of the times: more than 330 VARs attended a recent Intelisys Cloud Live! event, nearly twice as many as Intelisys expected. "We were blown away," Pryfogle said. "VARs showed up en masse and hung out for three hours. They are thirsty for cloud services education and how to make the pivot to recurring revenue."
Many VARs are starting first with carrier services to begin quickly adding recurring revenue to their mix, he said. "Customers are mostly dealing with carriers themselves and would prefer to buy those services from a trusted VAR advisor," said Pryfogle. "We are all about enabling VARs to build these recurring revenue practices quickly. Forward thinking VARs understand that recurring revenue is the only real answer to building a sustainable business in the new economy."
PUBLISHED MAY 1, 2013