Expanding the Cloud

At Ingram Micro's recent Cloud Summit event in Miami, Sara Yirrell finds out how the distributor is defying the naysayers and creating a burgeoning cloud business that benefits its resellers

When the concept of the cloud was first mooted, market watchers started sucking their teeth, shaking their heads and predicting the end for distribution as we know it.

But in fact it is distribution that has moved the quickest where the cloud is concerned, and seems to be embracing the model far more than some corners of the channel.

Ingram Micro runs an annual summit dedicated to the cloud and has split its own business model into four divisions, including one dedicated to cloud. For the first time it took UK and European partners over to its cloud event in Miami to see where it is going next, and CRN was invited along.

With more than 1,000 delegates descending on the Westin Diplomat Hotel in Miami, and sponsors such as VMware, Citrix, Microsoft and IBM, it is plain to see that cloud really is only just getting going.

Some would argue that the approach some distributors are taking might actually compete with some of the cloud specialists out there.

But Renée Bergeron (pictured), vice president of worldwide cloud at Ingram Micro, told CRN this is absolutely not the case.

"Our cloud service providers are fine with [what we do]. They know that Ingram Micro is about providing options and they use our ability to grow their business. We realise we have to be the hub for all these services.

"As we roll out more elements of our value proposition, it is going to be natural for resellers to do the next cloud thing with Ingram Micro. I think we are far ahead of our competition and we want to stay on our toes and keep innovating."

During the event, the distributor launched the next generation of its cloud platform - the Ingram Cloud Marketplace - which offers a complete ecosystem of buyers, sellers and solutions to help cloud adoption. It also announced a raft of initiatives and support measures to help partners make a smooth transition to the cloud.

Additionally, a number of workshops took place during the week, offering advice including how to compensate sales teams, create a cloud structure, and market a cloud business effectively.

Nimesh Dave, executive vice president of global business process and cloud computing at Ingram Micro, poured scorn on the naysayers who predicted the downfall of distribution due to the onset of the cloud.

"Cloud is not the end of things; it is only the beginning," he said. "The ones that talked doom and gloom are creating a crisis for change. The reality is that you need to have a mix [of cloud and infrastructure]. The industry will still need to sell Wi-Fi and routers, and a lot of hardware is going to be needed in the transition. Our position is one of enablement and education."

Ingram's event and cloud strategy also resonated well with the UK channel contingent.

Ben Gower, managing director of MSP Perspicuity, said: "Ingram has made it plausible for all partners - irrespective of where they are on their cloud journey - to have access to programmes, products and services that can accelerate them to have a viable cloud business.

"Partners like us can make good use of their pushing new cloud technology, accessible devices, managed infrastructure and their support of services such as Zynstra. I really like the fact that any MSP can take to the cloud at their own speed. The granularity of Ingram's approach is key and it seems to me a smart way for a distributor to support its resellers and makes distribution more important, rather than the view a few years ago that cloud would marginalise the distribution business."

Chris Dunning, managing director of TechQuarters, a cloud specialist, agreed. "It is good to see a distributor recognising the change and momentum towards the cloud," he said. "Also, it has been very helpful for all the partners to gain clarity on where they are with the cloud (on-premise, hybrid or born in the cloud), how to harness it more, with changes to their business structure. The cloud offerings will continue to grow and the Ingram solutions to date are pretty good. The ease of purchase is a must and the new Ingram portal will make life a lot easier for many partners."

And Phydos Neophytou, managing director of VAR Caretower, also hailed the event as a success.

"We have met a number of US partners who have shared some of their experiences, which may help us make quicker decisions and understand pitfalls. Cloud is something we are all looking to adopt and Ingram seems to be leading the way from a distribution standpoint. Additionally, it has been an opportunity to listen to multiple vendors about what they are doing, and what value Ingram will bring to the table to help with cloud business such as leveraging their resource and a new portal making it easier to purchase.

"Ingram has started to do what partners require from distribution, and that is bring value to the table with business ideas, creating a partner community that can collaborate and be involved as a partner, which means they are understanding your business and coming forth with ways that can help us improve and add new revenue streams."