FD Insights Issue 11 | Page 14

Before we know it, cloud will be as ubiquitous as any other computing model. It will just be expected that a company offers a cloud solution” That may be so, but in terms of channel business, how are resellers expected to make money with the accompanying shift in business model? Kevin states that “one important aspect to note is that the financial model of cloud is different to the traditional model. The shift is away from large once- off capital expenditure payments and the move is towards monthly opex payments. These can increase or decrease as the business grows or down sizes. This has direct implications for resellers who may have built their business model on these large onceoff payments. With the cloud model, the upside is that over a period of time a reseller can build a great base of predictable annuity revenue. In addition to this they can continue to upsell and enhance the cloud offering provided by customisation and/or adding additional cloud products.” As with most things in life, cloud and hosted solutions do have their risks, concerns and downsides. One of these is potential downtime and service outages. Naturally, all cloud solutions differ with regards to uptime SLAs (Service Level Agreements). Microsoft for example offers a financially-backed 99.9% uptime guarantee for their Office 365 product. What this does not take into account is any potential problems from the connectivity on the user’s side. It is still possible to cater for this however, by having redundant connectivity to the business. Security is another concern which often lurks at the back of the minds of both users and providers. Kevin however, has his own opinion on the matter. “I am always amused by the people who say, “I won’t use cloud computing for my company, it’s not secure.” Then I ask them if they do internet banking and wait for the penny to drop.” “Like any IT architecture, security in the cloud is of major importance. A company would not install an internal network without understanding all the aspects of security of the installation. With a cloud solution, this is no different. The company needs to inspect all the aspects of the service in question.” Kevin also has some helpful advice when it comes to cloud implementation. “Forrester has released a list of questions that enterprises should ask to secure their cloud implementation, covering the areas of security and privacy, compliance, and other legal and contractual issues. I would recommend resellers understand these and are able to answer these questions for their customers” he says. It’s clear that cloud is not going away anytime soon. In fact, it’s rapidly become the new normal. No wonder then, that First Distribution’s Hosted Solutions division has become such an integral part of the company’s business. Kevin has the last word. “Most resellers fear that the valuable services they provide their customers with will no longer be required in the cloud model. This is not the case - companies continue to require these services for their cloud solutions, most times in the ratio of around $7 of services revenue for each $1 spent on cloud services. So the opportunities are definitely still there for distributors and resellers willing to invest in new technologies” he adds. 14 | www.firstdistribution.co.za “I believe that cloud computing will be the predominant IT methodology within the next three years” he says. “Because of this, the term cloud computing will probably disappear from daily IT discussions. Cloud architecture will just be the way we consume IT services, and companies will no longer have these huge concerns as to where the programme or information sits. As cloud computing moves from mystery to mainstream, cloud will just become the pervasive computing mode in the same way that wireless has become the pervasive connectivity mode. This is an exciting time and resellers who embrace this change will be able to capitalise on this technology wave.”