Where To Find The Biggest Gross Margins In Cloud, According To Google

Head of Technology Partners at Google Nan Boden shared which business areas offer the largest gross margins for resellers and MSPs in cloud computing.

Speaking at the NexGen Cloud Conference, in Anaheim Calif., Boden stressed to the audience the importance of the journey to managed services through the cloud.

’The people that are making this journey successfully are moving up that stack, saying let me work more on a project basis and [in a] professional services sense,’ she said.

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’We’re talking about professional services that are much more targeted for customers or industries, or places where you’ve already built up a cliental over many years of trust,’ she added.

Once solution providers secure a customer for one business, it’s easy to build a new stream of recurring revenue off of that case.

’Customers are not that keen to kind of learn how to do all these things and be able to have their own staff running all these services. In fact, the economics point to where there’s better economies of scale if there’s people [who are] used to running these services continue to run them,’ Boden said.

The highest margins come in deploying packaged intellectual property or packaged solutions, according to Google.

Boden warned resellers who are stuck on the traditional ways of generating revenue.

’The folks that are not being successful are the folks that are kind of saying, 'look I really just want to be a reseller,'’ she said.