VARs : Checklist For Cloud And SaaS Solutions Article

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VARs : Checklist for Cloud and SaaS solutions

Cloud Computing and Software as a Service (SaaS) are emerging as the next imperative IT tools to sustain. With this, it has become fundamentally important for VARs (Value-added resellers) to evaluate Cloud/SaaS.

Author: Amarpreet97

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They have to reach a strategic decision whether to: build, assemble, partner or buy these solutions? It has become tangible for VARs to reach a business driven decision and decide which option suits them.

Various options to adopt the technology:

1. The option to build a complete tailor made solution from the services seems to be impractical for majority of VARs. For them, building from scrap is not feasible as it requires lot of money and resources. The option is only feasible for large caps and firms.

2. However, VARs would somehow like to buy the basic solutions, which would consist of hardware and software solutions available in the market and then would assemble it, according to their requirements. In current scenario, “Assemble” seems to be a more rational approach. It will help the users to develop the customized platform for their business with the help of just few vendors. Hence, after developing their own service delivery platform, a VAR can adjust the margins while dealing with customers. Therefore, the “Assemble” policy is recommended for those VARs for best ROI, who can afford the capex and opex needed for execution.

3. One of the most common approaches for almost all types of VARs is partnership. The market has many white label reseller solutions and also, the VARs can get registered with Microsoft Business Productivity Online Suite (BPOS).

The major advantage for the approach is the lesser amount of investment required to get start in the market. But, the key risk associated with the approach is the technology lock-in, which can change the business line for the VARs. It is hereby recommended for those who want to opt for Cloud and SaaS but are reluctant to build custom solutions.

4. The next and the easiest option is to acquire a company that excels in such business, but this can only be done by the big VARs, that are cash rich and big enough. Buying is a good option for such VARs who have big fundings with them, because from this approach they will have immediate access to all the earlier fundamentals of the company including people, process, technology and customers.

But, the approach has various risks in integration and transition. Any wrong step could lead to the failure of the motive for which it had been acquired. Further, most of the VARs are not in a position to make acquisitions. Hence, they should work on the Assemble versus Partner decision.

Conclusion:

Ultimately, VARs have to reach a final decision and judge which option suits them the best. If they think adoption of this technology is Mission Critical for their business, Assemble is a good approach and for those who are not very sure, can hop on to a partner approach.

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VARs : Checklist for Cloud and SaaS solutions