During the discussions we’ve had with our Partners this year, we’re seeing a tremendous focus on cloud technology, and all indications are that 2013 is shaping up to be a big year for Cloud-based BI.
There are huge revenue opportunities in the Cloud, but the key for Partners is being able to know how best to capitalize on them.
We’ve identified 5 key trends which can enable Partners to maximize the cloud opportunity:
The market has suddenly become a lot bigger (or has the world become smaller?)
Cloud has not only expanded the market opportunities for Partners but also facilitated a far more flexible business model. Traditionally, on-premise BI was mainly restricted to large organizations with the financial muscle to deploy large-scale hardware infrastructure and a large number of software licenses – limiting those who could reap the benefits of BI. With the flexible business economics of the Cloud, Partners have an opportunity to target a much broader market for their client base. BI is now a viable option for smaller clients within a Partner’s traditional verticals, but also the ability to expand into adjacent verticals and markets – opening up a whole new wealth of opportunities and revenue streams.
BI in the Cloud is a reality
Previously Cloud based BI had been viewed as a “nice to have”. In 2013 it’s already being viewed as a “must have” product for BI Resellers. The Cloud has evolved to become much smarter in breaking down the barriers between clients and their data. Clients are increasingly asking for their BI needs to be delivered as SaaS, as they recognize the increased powerful set of tools and services that the Cloud offers, such as the ability to collect, connect and enrich data. The Cloud significantly shifts the costs and risk of deployment away from the upfront, on-premise model with an increasing emphasis on value for money – giving end users the “bang for their BI buck” they demand.
Traditional business models will evolve
The Cloud brings with it big opportunities and greater flexibility for Partners’ business models. No longer will Partners be billing up-front for on-premise servers. Instead, a new, flexible subscription payment model should be introduced, ensuring you can meet your clients’ needs at a lower price point, while delivering a more powerful set of Cloud-based services. Resellers will need to invest the time to establish their internal business processes accordingly, to ensure that the Cloud becomes as profitable a revenue stream as possible. Cloud is not going away, for Partners, it’s a case of evolve or die!
A Partner’s agility becomes a key client differentiator
2012’s “Business As Usual” will become 2013’s innovative “Business As Your Clients Want It” as the Cloud can deliver on clients’ demands. Partners need to match, and in many cases, anticipate these demands to differentiate themselves from their competitors, and deliver a true, personalized service. The Cloud gives Partners and Clients alike the agility to evolve a project from a rigid, pre-defined set of parameters to something that reflects what is critical for the business, today. A recent TDWI study found that 74% of respondents find it difficult to adjust BI and analytics as a result of changing goals – a problem which the Cloud is designed to address. This agility doesn’t stop once an initial project is finished. Partners can work with Clients to easily scale deployments and roll out new functionality in the future in line with evolving business needs. Agility is also key for Partners’ go-to-market strategies – the faster they can develop and roll-out new services, the more they can capitalize on market opportunities.
Faster and simpler deployment
Faster and easier deployment in the Cloud results in reduced hardware, procurement and IT infrastructure complexities, and ultimately dramatically shorter sales cycles. There is no software, no hardware and no maintenance costs – adding huge value to partners and end users alike. Deployment and update of projects is friction-free, and opens up endless possibilities for analytical tools to be used across organizations – enabling thousands of users to create and consumer critical information.