Tech Data exec: 'A third of partners could disappear if they don't move to the cloud'
EMEA cloud boss tells CRN why MSPs are hesitant to move to hybrid cloud and what they risk losing out on by not making the move
Partners who aren't shifting themselves and their customers to a hybrid cloud model run the risk of disappearing in the coming years, according to Tech Data's VP of EMEA software and cloud unit.
Denis Fouquet was told this anecdote by a large Portuguese partner pre-COVID and elaborated that the pandemic has accelerated the need for partners to adapt their business and that of their customers to a cloud model.
"A business partner told me that probably one-third of the business partners in countries like Portugal would disappear if they don't move to cloud," he told CRN.
"I think this is true for most countries; if they don't move to the cloud, each business partner runs the risk of another business partner coming from the same country or coming from outside and helping their end user to move to the cloud.
"Most end users have a plan, or are already in execution mode to move most of their applications to the cloud and that is their digital plan.
"If business partners don't have a plan [for this move] for the next three years, some of them will be in danger."
Cloud specialists have seen revenue growth since the first wave of the pandemic due to this cloud demand - which is only increasing - where traditional VARs are in danger of being left behind because of delayed or postponed IT projects, Fouquet added.
He said that there are a number of factors that affect a reseller's move to a hybrid cloud model, including the investment in training and hiring the right staff to handle cloud services.
"For example, if you take the public cloud providers, Microsoft or AWS, business partners need to be certified, they need to do a lot of training and they need to have people with a lot of skills, and it takes time to move employees to this level, plus you might have to change some employees," he explained.
"Short-term versus medium-to-long term: they all see that they will benefit from that cloud move because they will have a lot of predictability and more margins, and they will have a higher value. But in the short-term, they see a decrease in their revenue.
"With the trend toward online business models showing no sign of slowing down, partners that can support end users in this transition are clearly those most likely to succeed. Not only that, in moving to a cloud model with recurring revenues partners will find that their business benefits as well, creating a win-win for everyone involved."