Menu
Secret Reseller - The cloud is a myth, for some

Secret Reseller - The cloud is a myth, for some

ARN’s partners inside the industry lift the lid on the real world of the channel.

Yes, you have heard it all before, that cloud is the future of business bla bla bla. But I’m telling you that it is not, at least not in all cases.

There are many different types of customers, all with different needs. Yet the major public cloud vendors of the world insist that an IT revolution is underway, where everything is cheaper in the cloud and that renewals flow like rivers of money.

The problem is, some of my customers have listened to this marketing spin and now they believe it.

So, what do I do? I roll my eyes and ask what they mean.

The first thing I need to know is what they think the cloud is because then we can have a discussion and start to break down specific needs and misconceptions. Because once I start to explain the pros and cons of each option, customers think twice about cloud.

Technically, I could just give them what they want and take their money but experience has taught me that they will end up hating it and me in turn.

In a few cases, I have done a cost comparison over five years for cloud versus on-premise for some customers — this was as much for my benefit as for theirs.

I was confused, I kept hearing cloud, cloud, cloud everywhere I turned so I decided to break it down and for the vast majority of my ten seat plus customers, it’s the more expensive option.

With some customers — but not the majority thankfully — there are implementation problems.

Some of these issues relate to old applications built for on-premise which need to be rebuilt for the cloud, but these are not the only problems we face.

If you have a 20 person environment with one server running Microsoft Active Directory, in such an on-premise environment, you can manage all the password authentication, software deployment, policies and installations.

Most of that sounds like pretty boring networking stuff to most people, but if you take it away and put it in the cloud and suddenly, each machine has to go to and from the cloud every time it needs to communicate and that can cause some technical problems.

The other issue is that we were able to provide the customer with centralised support at the server level, but now we have to go back to desktop support because each machine becomes its own little silo.

It will not always turn out better for the customer in terms of management which increases cost.

The other issue is leasing, you can buy a server for, let’s say $10,000, which will last you three years and with an extended warranty, five years at least. You put that in the cloud and for the same processing power, you are probably looking at $300-500 per month.

So let’s do the sums, that means that after 18 months to two years, you are already spending more than you would have if you bought your own server.

The other side of the argument is that with cloud you don’t need to have servers on-premise and that is a fair argument. Many companies do not want to house their own servers.

But on the flip side, you have the issue of internet connectivity. A company with a small on-premise network could easily run their business on ADSL. However, once they move to cloud, they will have no choice but to upgrade to fibre.

All of a sudden, instead of paying $100 per month for an ADSL link, you are paying $500 or more for a fibre connection.

There are all these hidden costs which the public cloud guys won’t tell you about and once you do the numbers, you realise that it doesn’t always work out cheaper.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags CloudSecret Reseller

Featured

Slideshows

The making of an MSSP: a blueprint for growth in NZ

The making of an MSSP: a blueprint for growth in NZ

Partners are actively building out security practices and services to match, yet remain challenged by a lack of guidance in the market. This exclusive Reseller News Roundtable - in association with Sophos - assessed the making of an MSSP, outlining the blueprint for growth and how partners can differentiate in New Zealand.

The making of an MSSP: a blueprint for growth in NZ
Reseller News Platinum Club celebrates leading partners in 2018

Reseller News Platinum Club celebrates leading partners in 2018

The leading players of the New Zealand channel came together to celebrate a year of achievement at the inaugural Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months, with more than ​​50 organisations in the spotlight.​​​

Reseller News Platinum Club celebrates leading partners in 2018
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP has honoured its leading partners in New Zealand during 2018, following 12 months of growth through the local channel. Unveiled during the fourth running of the ceremony in Auckland, the awards recognise and celebrate excellence, growth, consistency and engagement of standout Kiwi partners.

Meet the top performing HP partners in NZ
Show Comments