State of the Cloud Channel 2014


State of the Cloud Channel 2014


Cloud business models remain works in progress for most channel partners. Achieving profitability is harder as products and services commoditize. And differentiation is a challenge, as few companies make a go of selling only cloud products and services. Customer expectations for functionality and benefits from cloud products is high, putting pressure on vendors and partners to deliver premium value at competitive costs. All of this adds up to an economically challenged and fluid — but not impossible or impregnable — market. In this report, The 2112 Group and Channel Partners magazine will review cloud channel trends in revenue, profitability, business operations, sales and technologies, and how channel partners can best capitalize on the evolving cloud computing opportunity.

Table of Contents

  • Overview
  • Cloud Revenue Trends
  • Cloud Profitability in the Channel
  • Cloud Development & Maturation
  • Cloud Sales
  • Cloud Technologies Available & In Demand
  • Changing Customer Cloud Expectations
  • Looking Forward

Takeaways for Your Business

  • One-third of channel partners polled expectthe cloud to contribute growth at a rate of 25 percent or more.
  • Most channel partners (53 percent) believe their cloud profits will climb to between 11-50 percent by the end of 2014.
  • The number of channel partners engaging peers in cloud development has tripled since 2012.

About the Author

Lawrence M. Walsh is CEO and chief analyst of The 2112 Group, a business services company that specializes in helping technology companies understand emerging opportunities, value propositions and go-to-market strategies. He is editor-at-large of Channelnomics, a blog about the business models and best practices of indirect technology channels, and is widely known for his security, cloud and technology services expertise. He has previously served as editor of Information Security and VARBusiness magazines, as well as editor and publisher of Ziff Davis Enterprise’s Channel Insider. He is co-author of the management optimization book, “The Power of Convergence.”