As cloud computing interest and demand continues to grow, solution providers scrambled to find ways to take advantage of the cloud. It isn't the easiest thing for VARs that built businesses on hardware sales to adopt a completely new business model based on selling an amorphous service. But those that do change are known as the "Transformative" solution providers, which according to CRN parent UBM Channel are defined as having no revenue generated from on-premise solutions (Progressive solution providers, meanwhile, have a significant amount of recurring revenue from off-premise services like cloud, while Vintage solution providers earn almost all of their revenue from on-premise sales).
Transformative solution providers are leading the cloud computing charge that's forever changing the channel business, moving it further away from product reselling and more toward service providing. The channel will never be the same.