Guest Column | March 19, 2013

Why Are Channel Partners Closing Multiple Deals Within The Cloud?

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Saad Shahzad CSO dinCloud

By Saad Shahzad, Chief Strategy Officer, dinCloud

It’s more than just large commissions on all monthly recurring revenues…

The channel industry is evolving – it’s no longer focused on pushing boxes, but selling solutions. Channel partners need to ensure they can provide the end customer with solutions currently in customer demand. Through internal analysis with one of our national VAR partners, we found that an average account executive makes 7x commissions selling a cloud solution vs. a similar on premise solution. Given the accelerating adoption of cloud computing, you can see why channel partners are focused on adding various cloud services to their arsenal of solutions.

A major concern and roadblock for cloud adoption is with SLAs (service level agreements). When a cloud provider successfully meets its SLAs, the channel partners can be comfortable that their end customers will have a great experience in the cloud. Hence, it’s very prudent for a channel partner to launch a proof of concept with the cloud provider.  In addition to the benefits end customers receive by moving to the cloud, the channel partner can verify performance, support, and onboarding process.  Furthermore, by being a user of the cloud solution, the channel partner will be very effective on the sales side as well.  This will ensure a long-term successful partnership and avoidance of any roadblocks.

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