Q: What are the most interesting results from your research?

pullfarmInternet and Web Development

Nov 3, 2013 (3 years and 9 months ago)

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Partner
cloud p
rofitability

Q&A with Darren Bibby
, IDC


A 2013 IDC study released at Microsoft Corp.’s annual Wor
ldwide Partner Conference (WPC)

found that
partners
with
more than
50
percent

of their revenue related to the cloud have been benefiting from
higher gross profit, more new customers, higher revenue per employee and faster overall business
growth.

Below is a Q&A with lead analyst Darren Bibby,
program
vice president of Channe
ls and
Alliances Research
,
IDC.


Q:
What are the most interesting results from
your research
?


The business performance metrics of the
more than
50

percent

cloud partners were more impressive
than I
had envisioned

beforehand.

Cloud
-
oriented partners have
better gross p
rofit and revenue per
employee.
I’m also impressed how much faster they are growing and how many new customers they are
acquiring.


What we have to remember in this study is that cloud alone hasn't caused these impressive numbers,
al
though th
a
t
is
absolutely a part of it.
We also know that top
-
performing partners have taken on cloud
technologies before their peers, bringing their high key performance indicators to our study.


Q:
What are the most unexpected results from this survey?


A:
We sa
w that t
he cloud is helping partners get a foot in the door
and
,

o
nce they have that relationship,
they’re able to sell

in all sorts of
solutions that are both cloud
-
based and on
-
premises. A hybrid
approach still rings true with customers
,

and high
-
perform
ing partners are capitalizing on this.



We also learned that
many
born
-
in
-
the
-
cloud partners
have
had
to
bring on (or partner for)
on
-
premise
s

technologies

because they
’re realizing that
customers are a
sking for a combined approach.
Customers
are hesitant

to move certain workloads to the cloud and want to keep them on
-
premises.
The demand
for cloud will continue to increase, but we don’t believe that on
-
premises solutions are going to go away
for a very long time


if at all.



Q: What would you say to partners
that
aren’t keen on transitioning to the cloud?


A:
Partners have to realize
that they

either
need
to invest in cloud or

they could find
themselves
completely irrelevant
.

A few years ago
we

would
tell

partners

to

at least
have a plan for
going to the
cloud. Now as
we're halfway into 2013
,
we’re saying

to partners that if you’re not

doing

anything in the
cloud, you are
definitely
behind.



S
ome partner

executives

d
on’t want to pursue the cloud



in many cases because

they

do
n’t have a
succession plan and

want to retire
or sell their business
anyway
. For them
,
it’s
not worth
their

effort
s

to
get into cloud.
However, most partners want to have a successful long
-
term business and
will have to
figure out their play with the cloud.
If you don’t approach it soon enough, your customers will be looking
to get cloud
solutions
from another
partner or
vendor.


Q:
What is the most important thing partners can do to start making money in the

cloud?


A.

Get trained
,

and get some experience. Microsoft has a lot of resources for partners to learn about
moving
their businesses to the cloud.
Take the training
,

and

look to learn from other successful


Microsoft
partners.
In my experience, Microsoft
partners work with
one an
other way more than any
other partner community.


A good way for partners to get experience is to install cloud themselves and
run it in their own

business.
One Microsoft partner told us that whenever they to start

sell a new solut
ion, they install it for a local
charity

it helps th
em learn and helps the charity.
The more experience a partner can get, the better
they will be at selling solutions.



For more information about the IDC study and all WPC
-
related news, please visit
www.digitalwpc.com

or
http://www.microsoft.com/en
-
us/news/Press/2013/Jul13/07
-
08WPCDay1PR.aspx
.