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Is cloud business unprofitable?


Jan, 15


Is cloud business unprofitable?

Cloud-ProfitabilityMany IT resellers are still struggling with cloud computing. So much that one might wonder whether there is money to be made in the cloud at all. On the other hand, a lot of companies have become very successful in the cloud. And even as more businesses adopt cloud solutions every day, the market today is still a greenfield. So can you capitalize on cloud computing, and how?

A few weeks ago, one of the world’s most successful Office 365 resellers visited our country and told us his story. Ben Gower, CEO of Perspicuity, shared the successes and failures he experienced first-hand with his peers from Belgium and the Netherlands. It was an inspiring story with numerous lessons learned. In this post I will recap what I believe are the most important ones.

1. Separate cloud business from your regular business. You might have been successfully selling and servicing IT for years. But delivering cloud based services is different on so many levels, that mixing the two is very difficult. Keeping a separate P&L also allows you to better measure your cloud business’ bottom line.

2. Hire the right people. Unfortunately there is no formula to tell you what the ‘right’ people are. But think of it this way. Both the sales part and the tech part are vastly different than they were before. And putting the same people in the same roles will result in them doing the same thing they have always done. Which might no longer suffice. Think about what you need people to do for your company to become successful, and put the right people in the right seats.

3. Maybe the most important one: make a decision. Are you going for it, or not? If your answer is “yes”, make a plan and get your business stakeholders behind you. It’s okay to fail and to adapt your plans but as with any enterprise, becoming successful requires devotion and energy. Don’t start without conviction.

So yes, cloud business can be very profitable for IT resellers. But change doesn’t happen overnight. Think about what you want to achieve with your company, and how to achieve it.

Recently Microsoft also held a number of online events on Cloud Profitability. They cover subjects like the transition to cloud, finance planning, and a case study on cloud strategy. The recorded sessions can be viewed online, and could definitely be worth your time. Check them out here.

Author: Rolf Naberink, Marketing Manager at Ingram Micro Cloud

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