Aviatrix CEO On Potential Post-Broadcom VMware Layoffs And Why On-Prem Market Is ‘The Titanic Going Down’
Aviatrix CEO Steve Mullaney talks to CRN about potential VMware layoffs ahead, why the on-premises market is sinking and Aviatrix’s rapid cloud growth.
Talk about the future of the on-premises IT market and channel partners selling on-premises solutions.
The on-premises market is the Titanic going down.
It’s going down and supply chain issues are only accelerating people to go into the cloud. The recession is only accelerating people go into cloud. COVID is only accelerating people going into cloud. Like, the game’s over.
Now, not to say that on-prem goes away. It won’t go away, but the growth is going to go away.
You’re not going to have any more big growth—those days are over. Dell’s not growing at 40 percent like the cloud companies are.
When the Titanic went down, it sucked you down with it. The problem for these channel partners is: you’re going get caught.
So all these people that are selling Cisco and reseller partners that are getting points on a deal—you move to the cloud, it’s all in their Marketplace.
There’s no value around, ‘I have availability of the product.’ There is no product to sell software. They go on the [cloud] marketplaces. So what’s the channel partner value?
If your value is, ‘I have the vendor’s box. And you buy the box from me.’ There use to be value to that.
Now with software, customers can just log onto the AWS Marketplace and download the software.
It’s now all about partners providing services. It’s going be 100 percent services.
It’s your intelligence, your ability to help customers design, architect, and maybe even run their network for them. Managed services is a huge value for partners.
Partners selling boxes are going to go down with the Titanic. … If you don’t start getting with the cloud, you’re not going to have a job.
The channel needs to get going and start learning cloud. You better go figure out how to have business value in the new world because it will just move past you.