As cloud computing simplifies the access to software and services, the technology market have evinced a shift from capital expenditure to operating expenditure practices. With this, the risk of elimination of the VARs is quite eminent, because of the increase in the ability of suppliers to channelize their products directly to the customers.
But does that mean that VARs will not survive? Absolutely Not!
Every industry segment has a strong relationship with its consultative VARs. They are abreast with the companies’ products, services and operations and it’s not possible to disconnect with them. But the methods of adding value to these companies will definitely change for their survival in the long run.
The most important towering question hovering in the cloud market for the VARs is, “What are the opportunities for transformation of the VARs?
Traditional IT products operate on clearly defined architectures and feature sets whereas cloud computing technology is more virtual and decentralized. Hence, from a distributor and reseller’s view point, this makes the technology more difficult to move through a traditional supply chain of picking, packing and shipping. It has shortened and this is where an opportunity for the VARs crops up:
- The end customers’ hunger for complex IT is growing.