Cloud Computing Gaining Channel Traction

  • Tweet  
  • LinkedIn  
  • Facebook  
  • Google plus  
  • Send to Kindle
  • Send to  

Slightly less than half of solution providers primarily identify themselves as “cloud providers.” While it appears cloud computing is gaining traction in the channel, signs are pointing to a greatly fragmented landscape.

Slightly less than one-half -- 46 percent -- of solution providers now primarily identify themselves as cloud companies, up significantly over the previous year. The potential problem: The landscape of cloud provider types in the channel is greatly fragmented.

The year 2013 saw huge increases in solution providers identifying themselves as cloud companies. The number of companies calling themselves “SaaS resellers or providers” jumped 266 percent; the number of infrastructure and hosting providers leaped 350 percent; and the number of platform providers skyrocketed 800 percent.

Related articles

Problematic is the profitability of cloud computing services delivered or supported by solution providers is falling. In 2013, according to research by The 2112 Group, one-third of solution providers earned less than 5 percent gross margin on cloud products, and relatively few earned more than 30 percent profit on cloud sales.

CLICK HERE to take our State of the Cloud Channel SURVEY

By comparison, a majority of solution providers -- 60 percent -- identify themselves as value-added resellers or systems integrators, up 361 percent over 2012. Managed services providers remain a strong force in the channel, but not nearly as significant; their ranks have thinned by 23 percent over the previous year.

While the standard labels for solution providers remain dominant, their margins on product and services sales remain no better than any of the cloud services.

The rising popularity of cloud computing in the channel is encouraging, but more information is needed to understand and validate the trends. The 2112 Group and Channel Partners magazine are conducting our annual State of the Cloud Channel study. We need your help. Please take a few minutes today to complete our survey.

CLICK HERE to take our State of the Cloud Channel SURVEY

The information you provide will help us provide you with actionable guidance on how well cloud computing is doing today and what companies like yours need to do to succeed down the road.

  • Tweet  
  • LinkedIn  
  • Facebook  
  • Google plus  
  • Send to Kindle
  • Send to  
More on Channel Business
data-quality

Value over volume, RackWare says of expanded channel partner program

Aim is to have the right coverage with close relationships, VP says

divorce-pa

The velvet divorce? Options and disruptions to come from HP split

News that Hewlett-Packard is breaking into two companies continues to reverberate through the channel. While the ultimate impact on HP partners and customers remains unclear, the new entities will have plenty of options for plying their futures

treasure-chest-with-gold-coins

Channel strikes gold selling to non-techies

Tech sales staff busy selling to business units as much as tech staff, according to Gartner

jessica-m-225x300

Welcome to the new Channelnomics

Channelnomics goes live with new-look site. Join us on Twitter to give us your thoughts - @channelnomics

Visitor comments
Add comments
blog comments powered by Disqus
In-depth
Broken heart

An amicable split?

Where will HP and Symantec's conclusion that the sum of their parts is greater than the whole leave partners?

elvis67878787

Suspicious minds in the post-Snowden world

Investment in new technologies being avoided with security experts wary of cloud and new technologies post-Snowden

Old-fashioned cash register

Vendors need to get with the times, Channel conference hears

MSPs need up-to-date support from vendors, including working together

seo-checklist

‘Internet of Things’ shifting IT spending priorities

Analyst firm Gartner says enterprises spent more than $40 billion on what could be called Internet of Things (IoT) programs. As more IP-enabled devices get connected, enterprises may shift spending patterns and disrupt the way IT is acquired and supported