This week is all about the IT industry. I am at the annual CompTIA breakaway event and gathered with industry leaders from every facet of the IT world. It has already been a great event and we are only getting started. The focus of a number of the sessions has revolved around change - particularly that of the cloud and the pending changes that will be coming as that reality comes to fruition.
That said - I think more and more people are beginning to take a more balanced view of things. The sky is falling approach to dealing with it is over the top. Life is continuing in spite of the cloud. VAR's and Solution Providers continue to stay in business and serve customers. The reality is that if we take care of the customer - deliver strong customer service focused on their best interest meeting their business goals - we have a place in any new economy. It will come down to the relationship, and nothing cements it like good customer service. That does not mean we should stick out heads in the sand and pretend it is business like usual. We need to begin our due diligence into how the cloud will fit our business model and our customer's needs, and then learn all we can about selling, implementing, supporting, training and marketing it.
There was a great session that addressed some of this here at CompTIA breakaway. Here are some snippets I jotted down that I think are good to consider:
1. The channel lost 40K partners in 2009 with estimates that there are currently 210K left in the US
2. Execution will always be the differentiator
3. There are three key areas that will be hot in 2011 so cloud is only part of the real opportunity:
- Mobile
- Social networking
- Cloud
4. Many SMB customers are still waiting for cash before they spend money
5. As SMB customers shift from capex to opex it creates challenges and drives the need for cash for resellers
6. Creative financing will become critical
7. Reliance on VAR's goes up with the cloud - things get more complex, not less
8. Complexity during transition from on premise to a hybrid cloud goes up
9. Cloud means hybrid in most cases
10. Referral fees will change valuation methods when companies are sold
11. Today over 40% of partners not involved in the cloud
12. The percentage of end users currently using the cloud is almost identical
13. Becoming a sales organization becomes more critical as we sell cloud resources
14. Evolution of the roles in the channel and in a reseller company will occur
15. The could will require evolution of business models
16. Last year the best in class company metrics are 3x better when compared to average VAR
17. Business process becomes far more important in the cloud
18. Consolidation will increase in the channel as companies fail to make business model changes
19. It is critical to talk to clients about the cloud so someone else doesn't come in and do it
20. The vendors we work with will change. Apps will be sold by those closest to the client. UPS / banks / CPAs / lawyers etc. will become the new vendors
21. The last mile will be a tug of war. 38% of vendors see no need for disty and many struggle with the need for solution providers either
22. How a vendor views customer ownership must be a key factor in selecting a vendor
23. The only way to maintain margin will be to own the entire relationship from a management of the customer environment perspective
24. We really need to become cloud ambassadors
25. Training and adoption become much more important to maintain customer satisfaction and retention
26. There is a new group of partners coming on that don't have any prior baggage and will just fully embrace the cloud
This is a long list of thoughts that I gathered from different sessions here at CompTIA breakaway. My advice is to think about them strategically, plot a course, stay the course, and provide extreme customer service. In the end, he who owns the heart of the customer will win!
Showing posts with label cloud computing. Show all posts
Showing posts with label cloud computing. Show all posts
Tuesday, August 10, 2010
Friday, April 9, 2010
Time with CompTIA in Chicago
This week I was blessed with the opportunity to attend the first annual CompTIA member meeting in Chicago. It was a very full day of content and meetings about matters that are important to the technology industry. HTG has a strategic partnership with CompTIA and it has been great to get to know the team at CompTIA and begin understanding just how important their mission is for partners and others in the channel.
CompTIA is uniquely positioned to speak for all of us. They work hard to remain independent and to include all facets of our very complex industry. Members consist of partners of all shapes and sizes, manufacturers, consultants, vendors, distributors, industry experts and on it goes. Everyone has a place in this organization. They are tackling key areas that impact how business will happen. Cloud computing was a big topic of this meeting. But there were breakouts on managed services, training, certifications and more.
They are best known for their certification programs which are generic industry certs and very helpful to identify levels of knowledge in the workforce. But they fill vital roles of serving to lobby and protect our industry in Washington and across states as well. They bring together people who are unlikely to work together in any other forum to help create things that make the industry better. They are actively working to build a workforce for the future. Some of the statistics are frightening. CompTIA takes a very broad and high level look at all aspects of the industry as well as external influences that may impact it - and they tackle those things head on. Todd Thibodeaux as CEO is taking this organization into new areas that are vital to a healthy ecosystem.
CompTIA has a great staff of professionals who are leading this industry in many areas. I really enjoyed the content they presented and am grateful for their continued persistence to make this industry better. Are you a CompTIA member? It is a real value along with being an important way to get behind our industry. Just this week I downloaded a couple of the legal templates from the member site which easily saved me the cost of membership in saved legal fees. But it is far more than that. It is a chance to get involved with and make a difference in the channel. Don't just pay your fees for dues. Get involved, participate in shaping the future and be part of the organization that is leading the channel into the future.
Check them out at http://www.comptia.org/ and get involved today!
To take advantage of CompTIA’s special membership offer for HTG Peer Group members, please visit the link here:
https://portal.htgmembers.com/Sponsors/CompTIA/Shared%20Documents/SignUp.mht
You will need to use the promo code HTGAlliance.
This membership will provide HTG Peer Group members with the full benefits of CompTIA Membership except voting rights in the association and the $40 certification voucher which is offered with a standard CompTIA membership.
If you have specific questions about any aspect of CompTIA membership, please contact Charlene Lundy at clundy@comptia.org or (630) 678-8530
CompTIA is uniquely positioned to speak for all of us. They work hard to remain independent and to include all facets of our very complex industry. Members consist of partners of all shapes and sizes, manufacturers, consultants, vendors, distributors, industry experts and on it goes. Everyone has a place in this organization. They are tackling key areas that impact how business will happen. Cloud computing was a big topic of this meeting. But there were breakouts on managed services, training, certifications and more.
They are best known for their certification programs which are generic industry certs and very helpful to identify levels of knowledge in the workforce. But they fill vital roles of serving to lobby and protect our industry in Washington and across states as well. They bring together people who are unlikely to work together in any other forum to help create things that make the industry better. They are actively working to build a workforce for the future. Some of the statistics are frightening. CompTIA takes a very broad and high level look at all aspects of the industry as well as external influences that may impact it - and they tackle those things head on. Todd Thibodeaux as CEO is taking this organization into new areas that are vital to a healthy ecosystem.
CompTIA has a great staff of professionals who are leading this industry in many areas. I really enjoyed the content they presented and am grateful for their continued persistence to make this industry better. Are you a CompTIA member? It is a real value along with being an important way to get behind our industry. Just this week I downloaded a couple of the legal templates from the member site which easily saved me the cost of membership in saved legal fees. But it is far more than that. It is a chance to get involved with and make a difference in the channel. Don't just pay your fees for dues. Get involved, participate in shaping the future and be part of the organization that is leading the channel into the future.
Check them out at http://www.comptia.org/ and get involved today!
To take advantage of CompTIA’s special membership offer for HTG Peer Group members, please visit the link here:
https://portal.htgmembers.com/Sponsors/CompTIA/Shared%20Documents/SignUp.mht
You will need to use the promo code HTGAlliance.
This membership will provide HTG Peer Group members with the full benefits of CompTIA Membership except voting rights in the association and the $40 certification voucher which is offered with a standard CompTIA membership.
If you have specific questions about any aspect of CompTIA membership, please contact Charlene Lundy at clundy@comptia.org or (630) 678-8530
Sunday, February 21, 2010
The Next Three Years For HTG
I was blessed to spend a couple days this week with the HTG team and advisory council in a strategic planning session in Phoenix. Our mission was to step back and take another look at our course and make sure we were on track. It was a great exercise as we turned over every aspect of the HTG program and took a look at where we were, and more importantly, where we were going to be in 3 years.
After all, we continually press our members to do strategic planning. That has to drive every part of our businesses. It comes down to answering the "why" question. Why do we do what we do? What is the driving force - the end game - the desired outcome? Far too many businesses and organizations go through their lifecycle without ever really knowing why. They get up, go to work, take on risk, hire people, go through the motions day after day without ever really answering the question of "why". That is not the case for HTG.
HTG has a very clear answer to that question. It is the same answer we have had for a number of years: "HTG exists to help our members experience business and personal growth driven by execution". That is our mantra - our ONE GOAL - our castle on the hill. We will have succeeded if we are able to get ALL our members into a continual cycle of growth that aligns with their plans. That growth happens in many ways, at different speeds, across many different facets of our members. But the key is to identify where you want to go, to pursue it with passion, and to reach that goal only to set the next one that will define how you live and lead for the next period of time.
HTG identifies the need for that growth to happen in four areas: business, leadership, life and legacy. That is why our FOUR PLANS will continue to be central to helping us achieve our mission. We are not content to help members drive EBITDA alone. We want people to not only succeed in business, but to also have success in their relationships, in their personal lives, and in creating the future impact of their life driven by their legacy. This differentiates us from most other peer programs who focus on driving bottom line income. We don't ignore that need - it is primary in our mission - but to have a fantastic business without a balance - to lose the important relationships in life because of a single focus - well to us that does not define success and certainly will not produce happiness. Without life/work balance the money really is unfulfillng over time.
HTG will continue to drive our groups and members to leverage their peer relationships. The most important part of HTG is the peer group meetings each quarter. The QBR format (quarterly board review) with deep feedback from fellow peers is key to helping our members really grow. It is that accountability that keeps every member on course. We all face plateaus in our growth process. It is a lifecycle when running a successful business and to be able to lay it on the table and allow others to provide their guidance and share their wisdom is very valuable in driving growth. Benchmarking our financials through our partnership with Service Leadership, and building deep profiles and scorecards will take us to the next level in our reporting and feedback focus.
HTG will work more strategically with vendors and our distribution partner (Ingram Micro) to drive business and member success. We have had some great progress with a few of our vendor partners - notably ConnectWise, IBM, Microsoft, SonicWALL and HP - and we will be focusing on finding ways to work hand in hand to build methods to drive business for all. The good news about this environment is that it is very much a shared goal and in everyone's interest to drive more business. This becomes critical as we begin to deal with the transition that cloud computing will bring to our industry. We need deep partnerships and the ability to leverage the intelligence, data and direction of those who define what our industry becomes. Our partnership with Ingram Micro and CompTIA will be a key part of guiding us through the transition ahead.
There are many more details that will be shared in Dallas in April at our HTGALL lunch on Monday, and in the peer group meetings that will happen that week. But the reality is that our direction remains the same. We have more clarity about the details than ever before, and we will review those as we lay the plan out for our members in Dallas. HTG will remain focused on one thing: business and personal growth driven by execution. We are about helping our members go from good to great - to removing the roadblocks to their growth - and providing an environment through our program that allows us to build the premier set of business leaders in this industry. We are well on our way. Our pursuit of that goal will continue and our team is passionate about getting us there. As Edison said, "Vision without execution is hallucination". We are not hallucinating - we are on course and heading for the end zone. We are looking for a few good partners who want to join the journey. Only those with a passion to grow need apply. http://www.htgpeergroups.com/ for the application.
After all, we continually press our members to do strategic planning. That has to drive every part of our businesses. It comes down to answering the "why" question. Why do we do what we do? What is the driving force - the end game - the desired outcome? Far too many businesses and organizations go through their lifecycle without ever really knowing why. They get up, go to work, take on risk, hire people, go through the motions day after day without ever really answering the question of "why". That is not the case for HTG.
HTG has a very clear answer to that question. It is the same answer we have had for a number of years: "HTG exists to help our members experience business and personal growth driven by execution". That is our mantra - our ONE GOAL - our castle on the hill. We will have succeeded if we are able to get ALL our members into a continual cycle of growth that aligns with their plans. That growth happens in many ways, at different speeds, across many different facets of our members. But the key is to identify where you want to go, to pursue it with passion, and to reach that goal only to set the next one that will define how you live and lead for the next period of time.
HTG identifies the need for that growth to happen in four areas: business, leadership, life and legacy. That is why our FOUR PLANS will continue to be central to helping us achieve our mission. We are not content to help members drive EBITDA alone. We want people to not only succeed in business, but to also have success in their relationships, in their personal lives, and in creating the future impact of their life driven by their legacy. This differentiates us from most other peer programs who focus on driving bottom line income. We don't ignore that need - it is primary in our mission - but to have a fantastic business without a balance - to lose the important relationships in life because of a single focus - well to us that does not define success and certainly will not produce happiness. Without life/work balance the money really is unfulfillng over time.
HTG will continue to drive our groups and members to leverage their peer relationships. The most important part of HTG is the peer group meetings each quarter. The QBR format (quarterly board review) with deep feedback from fellow peers is key to helping our members really grow. It is that accountability that keeps every member on course. We all face plateaus in our growth process. It is a lifecycle when running a successful business and to be able to lay it on the table and allow others to provide their guidance and share their wisdom is very valuable in driving growth. Benchmarking our financials through our partnership with Service Leadership, and building deep profiles and scorecards will take us to the next level in our reporting and feedback focus.
HTG will work more strategically with vendors and our distribution partner (Ingram Micro) to drive business and member success. We have had some great progress with a few of our vendor partners - notably ConnectWise, IBM, Microsoft, SonicWALL and HP - and we will be focusing on finding ways to work hand in hand to build methods to drive business for all. The good news about this environment is that it is very much a shared goal and in everyone's interest to drive more business. This becomes critical as we begin to deal with the transition that cloud computing will bring to our industry. We need deep partnerships and the ability to leverage the intelligence, data and direction of those who define what our industry becomes. Our partnership with Ingram Micro and CompTIA will be a key part of guiding us through the transition ahead.
There are many more details that will be shared in Dallas in April at our HTGALL lunch on Monday, and in the peer group meetings that will happen that week. But the reality is that our direction remains the same. We have more clarity about the details than ever before, and we will review those as we lay the plan out for our members in Dallas. HTG will remain focused on one thing: business and personal growth driven by execution. We are about helping our members go from good to great - to removing the roadblocks to their growth - and providing an environment through our program that allows us to build the premier set of business leaders in this industry. We are well on our way. Our pursuit of that goal will continue and our team is passionate about getting us there. As Edison said, "Vision without execution is hallucination". We are not hallucinating - we are on course and heading for the end zone. We are looking for a few good partners who want to join the journey. Only those with a passion to grow need apply. http://www.htgpeergroups.com/ for the application.
Wednesday, December 16, 2009
The Last Mile
There has been much discussion around the concept that as SMB IT consultants and VAR’s – we own the last mile to our customers in terms of the technology landscape. Arnie Bellini from ConnectWise has been championing that concept to the IT Nation for the past year or more. For the most part that is largely true. Today, the customer relationship with most small and medium businesses runs through a local VAR who provides the needed hardware, software and services to bring IT into their environment. But a little history lesson may be worth considering as it regards the last mile and the future. As the Bible teaches, we can learn much by remembering what has happened in the past and we have a very relavant teacher regarding this relationship.
Local telephone companies always felt they had the last mile. That was a literal thing for them – the last mile of copper wire that went from their local connection point to the homes and businesses on the end of their wire. It served them well for many years as there was no real option – if you wanted phone service – you paid the local telco to get it. Then came change – lots of change. There was the advent of cellular which allowed customers to use wireless technology to bypass the last mile. Then along came cable tv companies offering telephone service using their wire – so now there is competition from a second “last mile” cable from a nontraditional telephony source. Then comes the Internet which is able to provide VOIP telephony services. The Internet can be delivered in lots of ways – via cable, copper, wireless, cellular, satellite – there are many ways that the last mile for VOIP can enter a home or business. Today there is no control at all for the local telco. In fact, they are scrambling to try and remain relevant in many situations by trying to add services to compete in delivering Internet, cable TV, and other digital services across their once precious last mile advantage. In many cases, they no longer even have a presence with the customers they once owned. It has vanished right before their eyes.
So how does that apply to us in the IT business. We have the same potential problem coming our way. First we have the transition that is being driven by managed services. Today many of the services that we once delivered by dispatching engineers to a local site has moved to remote support. We no longer need to roll a truck and put a person on premise to service a majority of the problems that occur. That means service delivery can happen from anywhere at any time. Many of us have built that competency ourselves, but margins will continue to be squeezed. It will become a comodity of sorts. And more importantly, if the equipment no longer resides on premise but in the cloud, our services at the least must change, but may in fact be non essential at all.
The sale of hardware and software has been a staple for many of us for years. That will likely diminish in the near future. With the advent of HAAS (hardware as a service) which allows a customer to purchase hardware and software via a monthly subscription beginning to gain steam, we will see purchases from our own offerings slip away unless we find a way to deliver that service. We are already seeing this being delivered by the national wireless companies as you can get a netbook with a wireless subscription on a monthly contract. And new partners like CharTec are springing up to enable traditional VAR's to compete in the HAAS space without having to figure it all out ourselves. And the next step will be no on premise hardware at all in some accounts – where it resides in a data center and is utilized via the wire. We have to prepare to see the margins we have been accustomed to receiving from the sale of hardware and software begin to move away drastically or maybe completely in some cases.
Cloud computing is a major game changer. It has the potential to rob the margin from the sale of hardware, software, projects and break fix sources. It also could cause us to lose the managed service revenue stream that many have come to rely on unless we adapt our services to be cloud friendly. There will still be a need to manage things in the cloud, and to manage some sort of end user devices, but those will likely take a different shape and be a virtual desktop in nature. If we don’t have services that are designed to serve the cloud environment, we will likely become irrelevant to our customers and lose this revenue stream.
So the real question is “what does your P&L look like if you lose the margin you generate from hardware, software, projects, break fix and managed services today. For many partners – that is their revenue and the bottom line is very negative. In fact, the business is insolvent. There are no other relevant income streams that can come close to supporting most businesses today. So what should we do? Certainly sticking our head in the sand and ignoring the potential threat is not the correct response.
This is not a doom and gloom post – but rather one to drive you to consider the opportunities that will be available to the partners who figure this new world out. Cloud computing will not happen overnight. There are many opinions on the speed of adoption. From my perspective, I believe there are a couple drivers. One will be the speed at which the new workforce begins to take leadership of the IT management in the SMB. Younger people have never known anything different than the cloud. They have put their email, data, pictures and social interactions in the cloud their entire lives. So they will have no hesitation to make the transition if the change makes sense from a cost perspective. Secondly there will be significant pressure on the cost of cloud services as everyone races to get to the new frontier from a delivery perspective. There will be many competitors – both large and small – who will make a “land grab” and attempt to draw people to the new source of monthly recurring revenue. Those two factors will be significant drivers to the transition. My personal opinion is it will happen sooner than later and within 3-5 years we will see a very different landscape when we consider IT infrastructure in the SMB.
So what should we do if we currently serve the SMB space? I believe we need to immediately embrace this transition and learn how to deliver products and services through the cloud. It begins by implementing them internally and using them so we have an understanding of how they work. The magic and ongoing opportunity for most of us will be in consulting around how to select and integrate with and within the cloud. I believe many companies will have a hybrid cloud model for the near term meaning they will likely push some things off premise into the cloud and retain others – such as line of business and financial applications – in their offices and under their direct control. I don’t believe that will be the final result as people get comfortable with the technology and reliability, but for now, it will likely be a combination of thing locally and across the wire. Most are already comfortable having financial access across the wire as they access bank, 401K and other financial information that way currently. Security has become acceptable in the cloud as people do it daily already.
We have to learn to sell differently, and provide services differently as the landscape changes. We have to learn new skills in how to connect the dots in the cloud and to our local customer networks. There is a “new normal” coming, and if we don’t begin now to learn how it will work, and more importantly how we can remain relevant in that new world, we will quickly find ourselves not in control any longer. The last mile is moving and we have to get started now to ready ourselves for the change. One day soon we will wake up and wonder how it happened as we didn’t even notice the change. But we definitely will notice the effect of that change because the income we currently depend on to make payroll and pay our bills will have dried up and moved to a different mailbox. That will be a very sad day as it will be far too late to make the changes and catch up then. Now is the time to stop and take a look at what is coming. The train has left the station. The only question is whether you will accept that fact and get ready to board.
Local telephone companies always felt they had the last mile. That was a literal thing for them – the last mile of copper wire that went from their local connection point to the homes and businesses on the end of their wire. It served them well for many years as there was no real option – if you wanted phone service – you paid the local telco to get it. Then came change – lots of change. There was the advent of cellular which allowed customers to use wireless technology to bypass the last mile. Then along came cable tv companies offering telephone service using their wire – so now there is competition from a second “last mile” cable from a nontraditional telephony source. Then comes the Internet which is able to provide VOIP telephony services. The Internet can be delivered in lots of ways – via cable, copper, wireless, cellular, satellite – there are many ways that the last mile for VOIP can enter a home or business. Today there is no control at all for the local telco. In fact, they are scrambling to try and remain relevant in many situations by trying to add services to compete in delivering Internet, cable TV, and other digital services across their once precious last mile advantage. In many cases, they no longer even have a presence with the customers they once owned. It has vanished right before their eyes.
So how does that apply to us in the IT business. We have the same potential problem coming our way. First we have the transition that is being driven by managed services. Today many of the services that we once delivered by dispatching engineers to a local site has moved to remote support. We no longer need to roll a truck and put a person on premise to service a majority of the problems that occur. That means service delivery can happen from anywhere at any time. Many of us have built that competency ourselves, but margins will continue to be squeezed. It will become a comodity of sorts. And more importantly, if the equipment no longer resides on premise but in the cloud, our services at the least must change, but may in fact be non essential at all.
The sale of hardware and software has been a staple for many of us for years. That will likely diminish in the near future. With the advent of HAAS (hardware as a service) which allows a customer to purchase hardware and software via a monthly subscription beginning to gain steam, we will see purchases from our own offerings slip away unless we find a way to deliver that service. We are already seeing this being delivered by the national wireless companies as you can get a netbook with a wireless subscription on a monthly contract. And new partners like CharTec are springing up to enable traditional VAR's to compete in the HAAS space without having to figure it all out ourselves. And the next step will be no on premise hardware at all in some accounts – where it resides in a data center and is utilized via the wire. We have to prepare to see the margins we have been accustomed to receiving from the sale of hardware and software begin to move away drastically or maybe completely in some cases.
Cloud computing is a major game changer. It has the potential to rob the margin from the sale of hardware, software, projects and break fix sources. It also could cause us to lose the managed service revenue stream that many have come to rely on unless we adapt our services to be cloud friendly. There will still be a need to manage things in the cloud, and to manage some sort of end user devices, but those will likely take a different shape and be a virtual desktop in nature. If we don’t have services that are designed to serve the cloud environment, we will likely become irrelevant to our customers and lose this revenue stream.
So the real question is “what does your P&L look like if you lose the margin you generate from hardware, software, projects, break fix and managed services today. For many partners – that is their revenue and the bottom line is very negative. In fact, the business is insolvent. There are no other relevant income streams that can come close to supporting most businesses today. So what should we do? Certainly sticking our head in the sand and ignoring the potential threat is not the correct response.
This is not a doom and gloom post – but rather one to drive you to consider the opportunities that will be available to the partners who figure this new world out. Cloud computing will not happen overnight. There are many opinions on the speed of adoption. From my perspective, I believe there are a couple drivers. One will be the speed at which the new workforce begins to take leadership of the IT management in the SMB. Younger people have never known anything different than the cloud. They have put their email, data, pictures and social interactions in the cloud their entire lives. So they will have no hesitation to make the transition if the change makes sense from a cost perspective. Secondly there will be significant pressure on the cost of cloud services as everyone races to get to the new frontier from a delivery perspective. There will be many competitors – both large and small – who will make a “land grab” and attempt to draw people to the new source of monthly recurring revenue. Those two factors will be significant drivers to the transition. My personal opinion is it will happen sooner than later and within 3-5 years we will see a very different landscape when we consider IT infrastructure in the SMB.
So what should we do if we currently serve the SMB space? I believe we need to immediately embrace this transition and learn how to deliver products and services through the cloud. It begins by implementing them internally and using them so we have an understanding of how they work. The magic and ongoing opportunity for most of us will be in consulting around how to select and integrate with and within the cloud. I believe many companies will have a hybrid cloud model for the near term meaning they will likely push some things off premise into the cloud and retain others – such as line of business and financial applications – in their offices and under their direct control. I don’t believe that will be the final result as people get comfortable with the technology and reliability, but for now, it will likely be a combination of thing locally and across the wire. Most are already comfortable having financial access across the wire as they access bank, 401K and other financial information that way currently. Security has become acceptable in the cloud as people do it daily already.
We have to learn to sell differently, and provide services differently as the landscape changes. We have to learn new skills in how to connect the dots in the cloud and to our local customer networks. There is a “new normal” coming, and if we don’t begin now to learn how it will work, and more importantly how we can remain relevant in that new world, we will quickly find ourselves not in control any longer. The last mile is moving and we have to get started now to ready ourselves for the change. One day soon we will wake up and wonder how it happened as we didn’t even notice the change. But we definitely will notice the effect of that change because the income we currently depend on to make payroll and pay our bills will have dried up and moved to a different mailbox. That will be a very sad day as it will be far too late to make the changes and catch up then. Now is the time to stop and take a look at what is coming. The train has left the station. The only question is whether you will accept that fact and get ready to board.
Friday, August 1, 2008
Are you signed up for BPOS
Unless you have been living under a rock, you should know by now that Microsoft has announced their online strategy called BPOS. We are now using 4 letter acronyms as we evidently have run out of shorter ones. But the reality is that this train has left the station and is on the tracks. Cloud computing will come, even to the SMB, but not today or tomorrow for most of our customers. But none-the-less, it is coming and I encourage you to start to learn and understand what it means. Just like any new technology or change in our industry, it takes time to figure it all out and this is no different. We need to start to get acquainted and understand where it fits and how we will engage. It is not about the 12% first year payments, or the 6% ongoing fees - it is about how we learn to build process and value for our clients through implementing these technologies.
CRN quoted Ray Ozzie from Microsoft on this topic yesterday: "Microsoft's opportunity in this space is perfectly aligned with that of our partners to provide them with the platforms and the tools to make this transition, leveraging our experience as well as our substantial economies of scale in embracing the cloud," Ozzie said.
Ozzie also said Microsoft will offer developers and VARs a pay-as-you-go model for the infrastructure they consume, adding that margins will increase as they move higher up in the stack. "I would expect that the lowest-level computation or storage or whatever infrastructure is going to have lower margins than something at the level of a building block, like a SQL in the cloud, which will have lower margins than something at the application level, and so on," Ozzie said.
You can read their story at http://www.crn.com/software/209900488.
This is all about the business triangle concept I have been preaching the last year or so - we have to learn new skills and move up the stack of value to stay relevant. For now, I encourage you to get set up with a BPOS account. I went through the drill the other day and took the training, filled out the legal doc and passed the online test. It takes an hour or so to get done. Here is the link: https://www.discoveronlineservices.com/Pages/Default.aspx. No reason to put it off - no cost - and the time to learn is now.
I encourage you to start getting acquainted with these services and the concept of cloud computing. I don't think it is imminent, but it is coming and those who learn and are ready to leverage it will have a significant competitive advantage when the train arrives!
CRN quoted Ray Ozzie from Microsoft on this topic yesterday: "Microsoft's opportunity in this space is perfectly aligned with that of our partners to provide them with the platforms and the tools to make this transition, leveraging our experience as well as our substantial economies of scale in embracing the cloud," Ozzie said.
Ozzie also said Microsoft will offer developers and VARs a pay-as-you-go model for the infrastructure they consume, adding that margins will increase as they move higher up in the stack. "I would expect that the lowest-level computation or storage or whatever infrastructure is going to have lower margins than something at the level of a building block, like a SQL in the cloud, which will have lower margins than something at the application level, and so on," Ozzie said.
You can read their story at http://www.crn.com/software/209900488.
This is all about the business triangle concept I have been preaching the last year or so - we have to learn new skills and move up the stack of value to stay relevant. For now, I encourage you to get set up with a BPOS account. I went through the drill the other day and took the training, filled out the legal doc and passed the online test. It takes an hour or so to get done. Here is the link: https://www.discoveronlineservices.com/Pages/Default.aspx. No reason to put it off - no cost - and the time to learn is now.
I encourage you to start getting acquainted with these services and the concept of cloud computing. I don't think it is imminent, but it is coming and those who learn and are ready to leverage it will have a significant competitive advantage when the train arrives!
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