A new study sponsored by Microsoft finds that partners seriously selling cloud almost double their gross profits and grow faster than non-cloud companies.
By Cecilia Galvin
July 10, 2013
If less than 50 percent of your revenue is derived from cloud offerings, it’s time to step up the pace. At least, that’s the message from Microsoft at WPC this week in Houston. Why? According to a study conducted by market research and analyst firm IDC for Microsoft, partners attributing more than 50 percent of their revenue to cloud services—so-called cloud-oriented partners—see higher gross profit, attain more new customers, see increased revenue per employee, and grow faster than their peers who draw less than 50 percent of their revenue from cloud offerings.
Darren Bibby, program vice president of channels and alliances research at IDC, acknowledges that adopting cloud services is not the only reason cloud-oriented partners are seeing these gains, “though that is absolutely part of it,” he says. “Top-performing partners were visionaries that took on cloud technologies before their peers.” Based on the research, Bibby predicts that “partners that don’t move some of their business to the cloud likely won’t survive. And some partners that are getting ready to sell their business or retire may be OK with that. Most won’t be.”
But business survival aside, one of the key takeaways from the survey for channel pros is that their customers are most interested in having one cloud provider that can meet their business needs and from which they can purchase different services. Microsoft clearly thinks it is that cloud vendor. But that’s up to you and your customers to decide.
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