How and why are Cloud Providers relying on Distributors to take their services? 


Every day new and more advanced technologies emerge that change how businesses operate. These technologies like cloud bring growth and change, often in disruptive ways. IDC expects the Indian public cloud services market to grow at a CAGR of 24% by 2026. * 

Businesses have turned to the cloud because it is a cost-effective way to get computing power. Cloud service providers have helped businesses to change many of their processes. It has made it possible for smaller companies to compete with their bigger rivals.  

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There is a big opportunity for the cloud providers. Cloud providers are realizing that, for successfully taking their businesses to the next level, they need to partner with distributors. Cloud service distributors provide access to capabilities that most small companies usually find difficult to access. This post will explore how and why cloud providers are relying on distributors to help grow their businesses. 

Challenges faced by cloud providers

  • Subscription billing complexities: Cloud service providers (CSPs) work using a subscription business model. While it gives flexibility to the customers, the billing process can be much more tedious with different types of cloud services and billing cycles. 
  • Inability to provide 24X7 Customer support: Although CSPs have staff with expertise in the technical arena, they are often unable to offer 24×7 technical support to the customers and this can lead to decreased customer experience. 
  • Difficulty to access leading providers: SMBs can find it complex to access the services and products from leading CSPs and may not have much technical expertise. 
  • Less market knowledge: Market penetration will be a difficult task for new CSPs due to a lack of resources and less knowledge about local markets. 
  • Budget constraints: CSPs will have to invest a lot of time and money to manage the growing number of customers and collect customer usage information for improved service delivery. 
  • Difficulty in managing multi-cloud solutions: CSPs have a lot of trouble delivering and managing a cloud solution from different providers. It’s hard for them to create a multi-cloud service that their customers want. CSPs also don’t do well integrating cloud solutions from different providers or providing bundled solutions that meet customer needs. 

By partnering with suitable distributors, CSPs can address the above challenges and focus on delivering valuable services. 

Benefits of relying on distributors 

  • Distributors have a strong partner network enabling the cloud products to reach a larger audience. 
  • Cloud providers can leverage the distributor’s expertise and resources and focus on developing their cloud solutions and delivering value to their customers. 
  • By partnering with a distributor, cloud providers can accelerate the sale of their cloud services with distributor’s GTM services and maximize their success in a growing market. 
  • Distributors can act as marketplaces for managed services. This means that smaller MSPs can resell the cloud services they wouldn’t be able to provide before.  
  • Distributors can put in place a system that collects customer usage information from resellers which can help create automated billing for the customers. This service will give distributors to sell cloud-based products effectively. 

Why should cloud providers trust ZNetLive for their cloud services? 

ZNetLive is a trusted cloud distributor and has been in business for over 13 years and has served thousands of customers comprising enterprises and SMBs to date. 

Key benefits CSPs can enjoy while partnering with ZNetLive: 

  • Security Regulations and Compliances: ZNetLive’s cloud solutions are secure and compliant with all government regulations. 
  • Automated billing platform: ZNet’s in-house automation and service delivery platform, RackNap, helps you manage billing and provisioning for your customers.  
  • Diverse product bundling: ZNet enables its partners to bundle high-margin products from multiple offerings and improve profitability. Partners can easily bundle products from ZNetLive with their existing solutions to up-sell/cross-sell and increase their average order value.  
  • Flexible pricing: Partners can enjoy the privilege of flexible pricing and hence offer the best pricing to their customers.  
  • GTM assistance: ZNet helps partners grow their business by offering them Go-To-Market (GTM) assistance which help partners target the right audience, build value, and monetize the services better. 
  • Customized infrastructure: ZNet’s OEM certified experts design an ongoing and customized OEM infrastructure that is specific to the needs of each customer. This ensures that each business receives the best possible service and the most efficient use of resources. 
  • Managed cloud resources: ZNet reduces the risk of downtime by deploying services like continuous patching, proactive monitoring, and backups, and ensures that your customer’s system is always running smoothly.  

Source: * https://wire19.com/indian-public-cloud-services-market-to-grow-at-a-cagr-of-24/ 

 Also read: Do you see your career as owning a new IT business?

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