How big is this on premises cloud services opportunity?
It is huge because what we are seeing is this on premise as a service opportunity grow at a compound annual growth rate of 60 percent for the next three years. So this is turning into a $35 to $40 billion market opportunity for these as a service on premise capabilities. That is across everything we have talked about from the hardware to the services to the partner ecosystem. That is dramatic growth. It is a dramatic opportunity. That’s why I love seeing the fact that our partners and the channel are now pivoting to as a service, offering GreenLake to their customers.
This is nothing but upside and accelerated growth. It is the place that we want our channel to be so they can really accelerate their own personal profitability and capabilities.
What is the biggest obstacle to that partner on premises cloud services sales and profitability?
The biggest challenge is you really have to shift your mindset and you have to transform as an organization as well. No longer is it about filling hardware or component capabilities that customers need. It is really about shifting and pivoting to what are the business challenges that customers have and what are the solutions I can offer? They have to look at how do they get deeper on these services capabilities?
I think that is the biggest thing we have to get from our channel. It is about how do they turn from maybe more transactional type capabilities to being much more services led. That is when it really takes off.
It’s exciting to see people make that shift. That is sort of the biggest thing. You have to mentally shift your business model and understand what that means going forward. We have got workshops. We’ve got a lot of learning materials. We have got a bunch of playbooks and a lot of components to help partners in that transformation. Frankly we are really excited to embrace that change.