That’s according to recent findings from Dicker Data, which highlights the growing shift towards subscription-based cloud offerings across the country.
Findings show that 53 percent of resellers would switch to a vendor with a subscription model if this was not offered by incumbents, with partners citing flexibility, freeing up cash flow, and lowering business risk as the key drivers of change.
“Kiwi resellers want a piece of the cloud action,” says Lou Nunn, Business Unit Manager, Dicker Data New Zealand. “Partnering is also on the rise with an unprecedented number of resellers offering up solutions or services through a distributor, proving that the drive for scale has never been greater.”
According to Nunn, over 70 percent of Dicker Data’s software business is transacted through some form of cloud-based subscription.
“Dicker Data is well down the path of its New Zealand cloud strategy,” he says. “Our cloud strategy was set a number of years back and cloud now accounts for a significant proportion of our revenues.”
Nunn says the distributor’s biggest investments in systems and processes have all been cloud related and are now “robust”.
“A number of our people are considered leaders within the cloud space,” he adds. “This hasn’t happened by accident as large amounts of money has been invested to ensure we’re leading in this market.”
Alluding to the research, Nunn says over 94 percent of resellers stress the importance of customer reach as well as lowering the cost of sales through automation, as factors expected to influence success in the cloud era.
Despite the shift to the cloud, Nunn acknowledges that it’s expensive for resellers to train staff and automate companies, highlighting the value-added role of distribution.
“We have the privilege of being able to scale more easily simply due to the nature of distribution,” he explains. “We fly in experts that hold workshops around transition. Large resellers tend to be invited to worldwide conferences but for many resellers tier two and down, the cost is prohibitive so this is where we step in.”
“It’s often the same for regional resellers as we are the major source of information during face to face visits.”
Keeping pace with growth
Nunn says the momentum created by the cloud visionaries in New Zealand has driven aggressive growth, and the next group of early adopters has brought the cloud to a de-facto standard.
In terms of further accelerating Kiwi resellers' cloud businesses, 85 percent of respondents are expecting moderate to significant increases in the number of subscription-based offerings being presented to clients.
For Nunn, staying at the forefront of this wave of growth will be paramount to resellers planning to stay relevant in a cloud-driven environment, a sentiment echoed by Dicker Data’s vendor partners.
“Microsoft is a leader in moving businesses to the cloud,” adds Heather Gordon, SMB sales and marketing lead, Microsoft New Zealand.
“Our CEOs have publicly stated that this direction is the future for Microsoft, as this move impacts all our partners and customers it is imperative that these messages land correctly.”
“Distribution plays a pivotal role in this journey. We needed distributors who understand where we have come from as well as where we are going so our customers receive the best advice as they take this journey with us. As such, Dicker Data is key to our transformation and success in the New Zealand market.”
Looking ahead, Nunn says Dicker Data intends to be the cloud distributor of choice in New Zealand.
“We intend to do that by helping you future-proof your business in the cloud,” he adds.
“We will do this by demonstrating to you, our customers, a level of commitment to the understanding of cloud-based subscription that is unmatched and unassailable in New Zealand.”
For resellers looking to transition to the cloud, contact Dicker Data onwww.dickerdata.co.nz
To register for the upcoming Cloud Event, click here.