A place in the clouds – for VARs?

Larry Walsh wrote a great article entitled “Managing the Mass of Clouds, which you can find here .

Here is some ramblings I replied to him with:

• VAR’s value the “R” (reseller) part of that, to our core. So, when it comes to choosing a vendor program we guard the client relationship part closely – “own the client or walk away” might describe a typical opinion. An example is the backlash Microsoft is getting from VAR’s about their S+S model. In fact, I am just finishing a term as one of the 16 worldwide Microsoft SBSC PAL’s (Partner Area Lead), and the feedback from the worldwide SBSC community is definitely a resounding NO to the agent model that Microsoft has suggested for delivering S+S.
• Do VARs feel threatened of becoming extinct? Or, are we a community that has proven itself adaptable enough over time and will do so again? I think the latter.
• Do savvy vendors who understand – and will support – the VAR model, win out? I, for one, have already looked at offerings from cloud vendors who will allow me to “own” the client, and have already done business with them before using things like BPOS. For me, adding some cloud based services has already become just another part of our “managed services” offerings to our clients. I say “managed services”, because while that is the generic term, our clients do not buy “managed services” from us. Rather they buy our own branded services which we market and sell and which will continue to expand and add more features and value. Our clients do not even worry which of these are cloud based, and do not care when we tell them.
• As long as the VAR owns the client, then discussions with the client are no different than they’ve always been … “if you choose Option A, here are the benefits and weaknesses; if we compare to Option B”, etc. Once the client chooses what’s best for them, they want us to implement and manage. They will – ultimately – not care if that is in the traditional client/server model, or thin client model with some hosted, or completely cloud based. In the short term there are fears to overcome, but ultimately they still need from us what they’ve always needed – a trusted business advisor that will make everything just work the way they need it. We have been a trusted advisor long before the term was used, and even before we became a VAR.
• Will different skill sets will be required? Absolutely, but hasn’t that always been the case? How many VAR’s who are successfully doing VOIP installs today would have guessed 10 years ago that they would be competing against the giant telcos? And, who would have given them a chance? Yet, telcos are not leading the way with VOIP installs into SMB – VAR’s are! So, if you tell me I need to become more business savvy… I hear you, and I already am. Personally, this has been the #1 focus on myself and my business for the last 3 years, and I don’t think we’re alone. And, if I need to hire that expertise, I can actually find that a lot easier in my area than to hire specific technical skills.
• Can we adapt? Sure, we already have. Will all of us? Absolutely not; some speak technical, not finance or business admin. They would make great employees at my company ;-)

So, and this is the key – As long as the VAR owns the client, nothing changes. However, if the VAR does not own the client, everything changes. In the latter, the VAR needs to learn to be a consultant, not a VAR. That will be ok for some, and devastating for others.

What do you think – where will VAR’s find their place in the new world of cloud based computing?

Bradk