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Google Exec On Cloud Trends: 60 Percent Of All Channel Revenue Will Come From Services By 2020

Meghan Ottolini

Analysts predict services will make up 60 percent of all value-added reseller business by 2020, according to Google.

Google's head of global technology partners, Nan Boden, who spoke at the NexGen Cloud Coference and Expo in Anaheim, Calif., said analysts see "very dramatic trends, shifting very quickly."

Right now, according to Forrester and other analysts, Boden said services make up about 35 percent of all business, with products providing the other 65 percent.

"This is putting a lot of pressure on the channel partners that we have exposure to, particularly being able to transition themselves from just value-adding, reselling products, to then saying, 'No, I'm going to be a value-added service provider,'" Boden said.

Boden recognized that the shift takes a new skill set, but said, "It's not really optional."

Boden also acknowledged that buyers increasingly want to buy on an opex model.

"They’re interested in consuming in ways that are not at all what it has been [like] in the past," she said.

"I think over the next few years, instead of there being a discussion about capex versus opex, you're just going to see capex kind of disappear into somebody else’s balance sheet."

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