* Posts by ChannelMonkey

4 publicly visible posts • joined 27 Jun 2012

Fund-a-mental: The real problem with clouds and managed services

ChannelMonkey

Credit in Cloud

In the early days of SaaS we didn't ever credit check or get insurance, you have the ultimate weapon of turning off the service. If you're talking managed assets or data being switched off, the potential loss for non payment by a customer is enormous which acts as a big incentive to keep paying.

Funding models for MSPs can be an exciting business as the annuity or consumption model means slow then fast ratchet of revenues at increased margin over time as assets are leveraged. It's actually a far more attractive model to lend against then traditional buy/sell. Once again UK funding community lags the US on this forward thinking.

Watch out, channel biz: Mega-services models will cut you if they can

ChannelMonkey
Trollface

Like your new pic

Fancy a drink some time?

ChannelMonkey

Re: Was there a point to this?

Why can't resellers or distributors offer services? Is consolidated billing the nirvana for end users? For instance, how many households have more than 2 services consolidated on one bill even though savings are offered? Even from the same vendor - e.g. car insurance? How many companies actually offer consolidated, multi-vendor billing if they are not finance sharks? Consolidation of bills is a possibility at reseller/disti level but end users and consumers are very different beasts. Name one major corporate who has two different telco vendors presented as a single invoice if not from a reseller of each of those vendors? The role of the channel has ALWAYS been aggregation and consolidation and it ALWAYS will be. Just a question of of embracing the new model and adapting techniques and systems. But possibilities don't diminish.

Most companies buying Cloud services actually pay annual bills, not because they save money. It's because they budget that way. The Cloud hasn't changed end user behaviour on that front but it has impacted the P&L model of the providers.

In the world of Cloud resellers are looking for direction and advice as to who are the players and how to access the market and what they will have to do differently. For disti's it's about presenting the opportunities and decreasing investment and risk for resellers. In reality, that's not a step change in the roles but it is in the model.

That's where the advice needs to be aimed - funnily enough few have anything practical to say so they just nay say or waffle.

Like me.

There is still time for the channel to participate - the swamp of vendors have just as little clue on how to take access the market - and that means opportunity.

Prophets of doom rarely make profits (I'll trademark that)

ChannelMonkey
Childcatcher

Was there a point to this?

If there was a point it might have helped but sweeping generalisations based on anecdotal data without one stat to prove one point doesn't help decision making.

The world is changing for sure but the channel has potentially an even bigger role to play in a world where customer relationship and service will prevail. If anyone should be scared, it should be the vendors.......After all they have not much more to offer than products in the vast majority of cases and not all can be service providers.......

What is Amazon but a channel with a new service model? What is Google but a product with no channel plan?

The channel may yet have the last laugh...