The Cloud: Business or Business Killer?

The second phase of the Cloud Convergence Council opened Wednesday at the Channel Partners Conference & Expo in Chicago.

The Cloud model is billed as inevitable and inexorable because it is simple, cuts cost and increases flexibility for SMBs. I agree: It does cut costs and increases flexibility for businesses. But don’t try to tell the men and women of the channel who are actually trying to do business that there is anything simple about making money in the Cloud.

A few verbatims from the first Cloud session yesterday, which was focused on compensation issues, make the point:

• “The big obstacle is compensation. We don’t know how much we should make."
• “Once you rip out servers and put them in your data center, you own that customer. You have to burn down the building to lose that customer."
• “Cloud is going to be a huge disrupter to the old VAR model."
• “Sales people are prima donnas."
• “Self service is a huge threat to the VAR."
• “The smart distributor is becoming a Sherpa, guiding people through the problem."
• “Let’s see [the sales engineer] get the signature! Most sales engineers have the emotional intelligence of a stop sign."

Sounds simple, doesn’t it? Sounds like there is an industry-wide consensus, doesn’t it?

The Cloud Convergence Council is an industry forum produced as a partnership between Channel Partners and The 2112 Group. President and CEO Larry Walsh of The 2112 Group led the lively, animated discussion around compensation issues. Walsh is an expert on the complex, contentious subject.  He also is justly renowned for bringing a point of view to work every day.

The compensation session is one of four sessions produced by the Cloud Convergence Council for this week’s event. Two sessions will be held Thursday: one on Cloud Security and Regulatory Compliance (8.30-9.45 a.m., Room W470B) and the second exploring the Cloud Value Chain (10-11:15 a.m., Room W470B).

For complete coverage of the Cloud Convergence Council – including news coverage, blogs, original research, reports, videos and whiteboards – go here.

A word to the wise: If you think the Cloud is inevitable, inexorable, simple and soothing, relax and grab another beer or a warm cup of milk and a cookie. On the other hand, if you recognize the Cloud for what it is – a work in progress, laden with vexatious business issues, opportunities and threats, and far from a fixed business model – check out the Cloud Convergence Council. The Council is the next best thing to a Sherpa for negotiating the channel’s harrowing climb to the Cloud.

Larry Lannon is group publisher of VIRGO ’s Communications Network, which includes Billing & OSS World , Channel Partners and vision2mobile .