The Case for Diminishing Returns – How to Get VARs Aboard the Cloud Train

The anecdotal saying that there are “those who make things happen, those who watch things happen and those who wonder what the heck happened” could not be more relevant when it comes to acting on one of the most prolific shifts in IT spending in decades.

A recent Baird report states: “Cloud services will drive a shrinking IT spending pie. As companies increasingly replace server and networking infrastructure with cloud services, we see a meaningful direct impact on existing hardware and software vendors.” Says Baird, “We estimate that for every dollar spent on [cloud services], there is at least $3 to $4 not spent on traditional IT, and this ratio will likely expand further. This translates to a steady decline in products, services, and IT personnel catering to those businesses holding tight to traditional enterprise technology.”

It is no longer a thoughtful discussion that there is a shift occurring. From on-premise IT to cloud infrastructure IT spending. Traditional IT VARs and MSPs are beginning to see, and experience, the change in customer requirements and an increasing sentiment towards cloud computing. The time is NOW for VARs and MSPs to act on these changing needs and align themselves with qualified IaaS vendors to help build out their Cloud Computing business practice.  Failure to do so will inevitably have an adverse effect on their businesses.

The good news is building a Cloud Practice is easier than you might think. There are highly qualified IaaS providers with integrated cloud offerings that include servers, backup and disaster recovery, file sharing and synchronization plus network access that makes the transition to offering cloud services straightforward. The white labeling of all services is an additional way for VARs or MSPs to brand their offering, eliminating the need for extensive upfront capital purchases and removing the barriers to building a cloud practice.

The freight train is no longer coming; it’s here. It’s time for VARs and MSPs to get on board and build their cloud practice now!

Paul Butcher

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