Cloud Resellers Must Transform into Cloud Service Providers to Meet Customer Needs
The cloud has revolutionized the way businesses operate, enabling them to access software, storage, and other services over the Internet. This has eliminated the need for on-premises hardware and software, reducing costs and increasing flexibility. Recent data shows that the global cloud computing market size is expected to grow from USD 445.3 billion in 2021 to USD 947.3 billion by 2026, at a compound annual growth rate (CAGR) of 16.4% during the forecast period. This underscores the increasing reliance of businesses on cloud technology to streamline their operations and improve their bottom line.
As intermediaries between technology vendors and end-users, cloud resellers have traditionally helped businesses choose the right technology solutions for their needs. However, resellers should expand their offerings by transforming into cloud service providers (CSP) to keep up with the customer's cloud evolution and seize the growing market opportunities.
The fact that businesses have different needs depending on their size, industry, and goals means that the cloud is not a one-size-fits-all solution. This is where cloud resellers can add value. In this article, we discuss the main types of cloud services and how different cloud resellers can leverage their expertise to differentiate themselves from hyperscale cloud providers.
How Cloud Resellers Can Differentiate from Large Cloud Service Providers
Becoming a cloud service provider involves more than just reselling cloud products. It requires a shift in mindset, business model, and infrastructure. Resellers must invest in the right technology, talent, and training to provide differentiated cloud services, including consulting, migration, integration, management, and support.
- Cloud Consulting Services: Consulting services focus on advising customers on the best-fit cloud technologies that match their business needs. This is an ideal transition for cloud resellers with a background in business or industry-specific consulting. Such resellers already possess insights into particular industries and can offer specialized advice that larger providers may not focus on. With a deep understanding of a customer’s business processes and challenges, they can create custom roadmaps for cloud adoption tailored to specific industries like healthcare, finance, or manufacturing.
- Cloud Migration Services: Migration services are about securely and efficiently transferring an organization's data, applications, and systems to the cloud. Cloud resellers experienced in data management and system architecture are well-suited for this role. While larger providers have standardized procedures, smaller players can be more flexible, accommodating unique customer requirements. This can involve specialized post-migration services like application fine-tuning, testing, and validation, ensuring that the moved systems meet or exceed performance expectations.
- Cloud Integration Services: Integration services connect cloud solutions to a customer's existing systems. Resellers with a background in software development and systems engineering would find this a logical next step. To stand apart, a reseller-turned-provider can focus on integrating specialized applications or legacy systems that large providers may not give priority to. Offering pre-built templates for common integrations or specialized coding services can help cut down the time and complexity involved in integration.
- Cloud Management Services: Management services focus on monitoring a customer's cloud environment for performance, availability, and security. Resellers who specialize in IT operations and performance monitoring can excel in providing these services. These resellers can offer more responsive and personalized service, like assigning a dedicated account manager familiar with the customer’s business needs and technology stack. They can also provide detailed reporting, real-time analytics, and proactive optimization to help customers maximize their cloud ROI.
- Cloud Support Services: Support services aim to resolve technical issues quickly and educate customers on effective cloud usage. Resellers with a strong customer service and technical support background are well-placed to transition into this area. These resellers can differentiate by offering more agile and specialized support, maybe even on a 24/7 basis. In addition, they can offer focused training and educational resources customized to the specific needs and industries of their customer base.
Benefits of Becoming a Cloud Service Provider
Transforming into a cloud service provider requires a significant investment of time, money, and resources. However, the rewards are worth it. By making this shift, resellers can:
- Increase their revenue streams
- Differentiate themselves from competitors
- Build long-term relationships with their customers
In conclusion, traditional cloud resellers must transform into cloud service providers to meet customers' evolving needs. This requires a shift in mindset, business model, and infrastructure. Resellers must invest in the right technology, talent, and training to provide a comprehensive suite of cloud services. By doing so, they can stay competitive in today's market and help their customers succeed in the digital age.
