Written by Marc Shelley, Egenera
Time teaches us that change is inevitable, especially when the subject is technology. Technology is an ongoing evolution that waits for no one.
But, many service providers have resisted using one of the arguably most compelling technological advancements of all time: the cloud.
Why is this? Why have some service providers resisted cloud adoption? And at what cost?
Many service providers I chatted with at a recent industry event said they weren’t yet sold on cloud because they had heard horror stories about experiences with cloud service providers (CSPs). Some of the comments I heard include:
- My reputation and client relationships could be ruined by a cloud outage;. How can I perform damage control if the CSP isn’t transparent about outages?
- I can’t risk losing clients to a CSP that has a (competitive) direct sales model.
- I can’t risk losing clients to a CSP that has a software (SaaS) business unit (Trojan horse scenario).
- I can’t risk losing clients because a CSP provides bad support to its partners, especially the smaller ones.
- CSPs dictate configurations, this inflexibility could lead to clients looking elsewhere for a “better fit.”
- If I can’t afford the costliest support tier subscription I’m going to get crappy support (at best).
- It’s a ‘damned if I do, damned if I don’t’ debacle. If I pay the highest costs for support my margins shrink, if I don’t pay the highest cost subscription, I get sub-standard support which puts my reputation and client relationships at risk. I don’t want to be put in this position. The big CSPs are forcing my hand … it’s a win-win for them, but not for me. The same is true for the high partner program costs they expect service providers to pay.
- I’m required to have employees certified on their platform. This additional cost kills my margins.
- What happens if I pay for employees to obtain costly and highly desired AWS, Azure etc. certifications and then they decide to take their certification and go elsewhere? Do I repeat the cycle? It gets expensive for a small service provider to keep up.
- If I use a big CSP my clients will know about their “race to the bottom” pricing wars. My pricing and margin strategy will be influenced by their press releases. I’ll be caught in the middle between the high costs of partnering with a big CSP and my client’s price reduction expectations. I don’t want to be in this position.
What I found astonishing was how unaware they were of alternatives. When they got around to asking what they should be looking for in a CSP (other than just a well-known brand name) I was happy to provide insight as to the benefits available only by partnering with a mid-size, wholesale, channel only CSP. The benefits can be found by clicking here.
The ironic epiphany I had at the end of writing this entry is that I started out talking about technology. But technology has very little to do with the cloud anxiety I heard at the show. There was more concern about the impact that cloud could have on intangible business metrics such as costs, margins, relationships and reputations. Technology (per se) never came up.
You won’t find the issues mentioned above when partnering with a mid-sized, channel only, wholesale CSP such as Egenera. We know our success depends on our partners. We go out of our way to make our partners successful … at no cost to them.
Are you ready to start the journey? What are you waiting for?