HomeCommentary Solution Providers Are Becoming the Architects of Change
Vizard: IBM Gets Principled About the Channel
Big Blue looks to improve its reputation with a Principles of
Engagement document governing how internal salespeople deal with the
channel.
Solution Providers Are Becoming the Architects of Change
To assume that new computing models such as SaaS are going to subsume all existing computing models is simply crazy.
As expected there was a lot of fuss and bother emanating out
of
Houston this week in the wake of
the annual Microsoft partner conference.
Once again Microsoft executives led by Steve Ballmer touted
the company’s
grand vision for Software Plus Services as solution providers again gnarled
their teeth about how they will make money in a world increasingly dominated by
software-as-a-service.
After all, the pricing of SaaS offerings tends to be down
right cheap compared to on-premise software and, worse yet, most of that
revenue tends to go directly into the coffers of the vendor.
The things that IT organizations seem to like most about
SaaS is that there is no in-house maintenance required for the application, it
takes less time to roll out and can be accessed from anywhere just about any
time. The things that IT organizations don’t like about SaaS are potential
security breaches, lack of access in the event of dropped Internet connections
lack of customization and the fact that they have to trust backup and recovery
to the application provider.
More importantly from a solution provider’s perspective,
customers report that they encountered twice as many bad surprises as good
ones. In particular, integration with existing systems, training, configuration
and data migration were all cited as problem areas.
There are two significant implications as a result of these
findings for the channel. The first is that there is significant high-margin
services revenue to be generated from helping IT organizations deal with
migrating to a SaaS application. The second is that there are still a lot of IT
organizations staying away entirely from SaaS because of security concerns,
problems with integration, inability to determine a positive return on investment
and the lack of ability to customize the application.
There is no doubt that SaaS has emerged has a viable model
for delivering applications. There is also no doubt that SaaS is a precursor to
a larger wave of cloud computing services that will significantly alter the way
we think about enterprise computing. That has a lot of potential negative and
positive implications for the channel. But to assume that new computing models
are going to subsume all existing computing models is simply plain crazy.
More
likely, we’re about to enter an
era of blended computing models that will put a premium on flexibility as
opposed to arguing over whether the business logic at an given moment should be
running on premise or in the cloud. And with that demand for flexibility, we’ll
see a new opportunity for solution providers to be the architects of a new age
of blended computing.
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