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This may be harder to see but what you really need to look at is the red arrow. This comes from a survey done this year about the channel – the top 10 things you need to know – where is the money? This is from ChannelWeb/CRN. And way at the bottom is Cloud, last year. This year it’s number two according to the partners they interviewed.
Although certainly not exhaustive, these are the primary roles we see evolving today among cloud IT providers. Again, these are likely to change and morph over time as the industry matures, but they provide you a starting point to think about what roles your company will play as cloud computing solution and/or service provider. You may choose to specialize in only one role, such as a cloud builder or reseller of services, or you may develop a strategy to play multiple roles. For example, you can be a reseller of IBM servers, storage, and middleware components and help your clients build out their private clouds and integrate public cloud services. Let’s now see how these roles fit into the business model options we just talked about in the previous slide….
As you make the shift from traditional IT reseller, to cloud services provider, it’s important to understand the change in business models and what it will mean to your revenue and profit flow. Providing cloud technologies to your clients will be BAU with transactional revenue and traditional margins. Providing services to help clients build private clouds will drive project-oriented labor revenue. Both of these sales will yield revenue and profit “up front”, as you may be normally used to. However if you are providing your own cloud service, or reselling a vendor’s cloud service, apart from traditional consulting revenue, you will typically see a revenue annuity stream that spreads the revenue and profit out over the life of the contract. This is a model well known by Managed Service Providers. Now let’s talk about the specific offerings from IBM that you can make money selling today….