Whilst many acknowledge the benefits of cloud-based computing, only 65% of IT channel companies offer cloud services, according to research by the Cloud Industry Forum (CIF) and Intermedia. This research surveyed 150 decision-makers from IT channel organisations around their attitudes and confidence in reselling cloud-based services.
What are the barriers to selling cloud-based services?
Those that have made the transition to cloud-based solutions have had to overcome significant barriers. The survey identified three in particular:
- Cultural changes within the organisation (82%)
- Staff skills shortages (81%)
- Difficulties surrounding their cloud marketing and positioning (80%)
Switching IT infrastructure can be difficult, and the barriers above demonstrate this challenge. But it really depends on the vendor you’re with. The research indicates that it’s the vendor’s responsibility to overcome these barriers for resellers to capitalise on the increasing demand of cloud-based services by end-users. However, the research also suggests that vendor support is often insufficient, with over a quarter of respondents feeling that vendors were not doing enough to support their transition to cloud-based services.
Is reselling cloud-based services worth it?
Channel resellers that haven’t made the move to cloud-based services are at a “distinct disadvantage”, states CIF’s CEO, Alex Hilton. The report shows that the end-user adoption of cloud-based services have increased in recent years, with 78% of end user organisations using at least one cloud-based service, up from 61% in four years earlier. Despite the growth presenting significant opportunities, the channel hasn’t been able to keep up with demand. Alex Hilton goes onto say: “Resellers that do sell cloud services are reporting a wide range of benefits, from improved competitive edge to extended revenues and market reach.”
Therefore, despite the potential struggle with making the transition to cloud-based services, it seems to be worth it. In truth, what this research really shows is the importance of choosing the right host. Going with a reputable host who offers application support is the first step in becoming a successful hosting reseller.
Support your reselling with WHMCS
For those hosting resellers that don’t feel supported, integrating with WHMCS via an API could be the solution. By plugging in from our provisioning platform, billing clients and tracking invoicing can be fully automated thanks to WHMCS. By facilitating a range of integrated support tools, WHMCS allows you to focus on maintaining relationships with your customers. With our powerful solutions and the support of WHMCS, you can seize the opportunities highlighted by CIF’s research by deploying bespoke bare metal environments or volume servers to your customers.
So if your hosting reseller business needs support, be sure to download our guide to better understand ‘How to Get the Best from WHMCS’.