CDW, World Wide Technology: Cloud Is An Opportunity Not A Threat


World Wide Technology's Kavanaugh said he has seen a number of large enterprises bringing once public cloud workloads back in house. "Everything is not going to go to the public cloud and everything is not going to be just done internally," he said.

"I am very bullish, very excited about going into 2014," he said in an interview with CRN. "If the past is any indication, we have grown over the last 10 years at 25 percent compound annual growth. And this year we grew our top line 27 percent." World Wide Technology plans to add 450 new employees next year, he said.

Vincent DeLuca, CEO of Logicalis, a $1.5 billion national IT services company, said he sees cloud as "synergistic" with the company's traditional infrastructure business. In fact, he said, Logicalis is seeing significant growth from helping IT organizations effectively become cloud providers themselves with IT orchestration and services capabilities.

Logicalis' aim is to drive its revenue mix to 40 percent services with 80 percent of that coming from recurring revenue over the next three years, said DeLuca. He said the big upside for Logicalis is the high margins that come from cloud computing managed services. "The margin being pulled off of cloud-based services or managed services is so much stronger," he said, comparing it with traditional infrastructure.

Paul Lidsky, president and CEO of Datalink, an Eden Prairie, Minn.-based infrastructure provider, said his company, like Logicalis, is also helping customers build out their own IT services units with orchestration and service-level capabilities. He said that is making Datalink more valuable to customers and opens the door to hybrid cloud engagements. "Having helped customers build a private cloud, we can take them to the hybrid model," he said.

Lidsky said solution providers that embrace the cloud computing movement will thrive while those that don't will go out of business.

"In 30 years of doing technology, I know if you endorse [new technology] and find ways to be of value to your customers, you come out healthy," he said. "If you put your head into the ground and ignore it, eventually your business is gone. For those of us realizing cloud computing is an opportunity [and] it is not necessarily a threat to our company, there are a lot of enhanced services and capabilities we can offer as we go forward."

PUBLISHED DEC. 9, 2013


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