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The future is in the cloud


The IT Industry is going through a massive change brought about by customer demand combined with the four disruptive technologies: cloud, mobile, big data, analytics and social media.

Cloud is forcing change in the way the channel business operates

When compared with on-premise solutions, cloud typically has a much lower upfront cost, quicker implementation cycle and is billed on a subscription basis.

Due to its scalability and flexibility, cloud has become fundamental to digital transformation, and its importance as a delivery platform, is rising exponentially as digital momentum grows. The digital transformation era is accelerating the impact cloud has on channel business models.

Cloud opportunities:

  • Cloud software spending growth will be 5.5 times that of packaged software after 2017
  • 60-70% of software, services and tech spend will be cloud based by 2020

To grow, to remain relevant to customers, and to remain profitable, IT channels (in all their forms) will have to master a number of business model transformations in the cloud and digital transformation era - in effect, to become a partner of the future.

Several industries have started to merge technology with their IP and become IT providers in their own right.

There are many examples from industries as diverse as financial services, manufacturing, and life sciences, which are developing and selling their own industrialised IT solutions.

Closely linked to the need to specialise is the need to create more structured alliances. It is becoming increasingly difficult to be 'all things to all people', and partnering with other IT companies is one way of developing more holistic solutions. IDC research has also shown that there is a strong correlation between companies that do a lot of partnering and better business performance.

Building a cloud business requires careful planning. Moving too fast can impact cash flow, but not moving at all can impact growth and new business.

However, a successful cloud business can help your business to build more predictable, recurring revenue streams, augment recurring revenue streams from managed services, open doors to new customers, enable you to extract higher revenue per employee, and create a number of upsell opportunities.

Although most channels acknowledge the momentum and growth in cloud, many are concerned about the impact cloud will have on their business — particularly in terms of revenue growth and the impact moving to a recurring revenue model has on cash flow.

To build a profitable, sustainable cloud business, IDC’s research has identified two key strategies for success:

  • Revenue replacement Strategies
  • Optimisation

Cloud programme assets

To help drive awareness of the impact of cloud and provide guidance on transitioning to a cloud model, Sage and IDC have developed a programme of assets:

Cloud is at the centre of growth in the software market.

What are the opportunities that cloud presents for channel partners?

View the infographic

Partners in the more advanced stages of their cloud maturity show significantly more positive financial metrics in revenue growth and profit markets.

Get excited about the business potential of transitioning to the cloud.

Read the brief

Partners can take the IDC Cloud Benchmark assessment which positions their cloud maturity and benchmarks them against their peers.

In addition, partners will receive personalised and essential guidance on developing their cloud business.

Take the assessment

See how a partner's success is linked to the key areas of operations, sales and marketing.

These best practice partner showcase documents provide real life examples of Sage Partners who have benefited from transitioning to the cloud.