December 1, 2011

The VAR vs. the Cloud

As more companies, government agencies and educational institutions move to the cloud, OEM equipment sales through VARs to these organizations are bound to be affected. The OEMs may sell equipment to the cloud providers but the VARS and resellers to enterprises will probably lose business to the cloud.

The enterprise will be challenged. Should the IT and communications functions stay in-house or reside in the cloud? Is a balanced, hybrid solution best? The CIOs job will change and the IT staff may be significantly reduced if cloud services are selected.

The VARs may not all survive. VARS will need to adjust their business models. In any case, the cloud will influence the future of VARs and their customers, the enterprise.

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Businesses of all sizes are under continual pressure to contain costs while increasing performance. In fact, in some soon-to-be-published research, we found via a survey of SMBs that when comparing both importance and difficulty of implementing a wide range of tasks, "Optimizing total cost of operations" was by far the leading concern.

But how do you do this? Usually through "outsourcing" of some form. However, while the VAR has been the traditional channel, cloud-based products/services are now a most legitimate option as well.

In the article, independent analyst Gary Audin examines these options and presents an analysis of the trade-offs.

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