While appetite for Cloud technology is growing, only 33% of organisations admit to being experienced in the Cloud. Advanced believes some vendors are neglecting the needs of SMEs keen to reshape themselves for the 4th Industrial Revolution, leaving this backbone of British business in danger of being left behind.
The British software and services company plans to win over new partners keen to address the needs of the SME market but who aren’t getting the right support from their existing vendors – a move it hopes will generate an additional £1 million in revenue over the next 12 months. Its new Cloud-based ERP solution, Advanced Business Cloud Essentials, is designed exactly to boost this opportunity for this reseller community.
The Advanced TruePartner programme will help resellers change their traditional business models as well as recognise what the Cloud is, and what it isn’t. Some vendors, for example, promote products as Cloud-based – when they are actually not true Cloud solutions – and there’s a danger of creating confusion amongst SMEs who rely on software resellers to guide and advise them.
Janette Martin, Managing Director of Strategic Partnerships and Alliances at Advanced, sees this as both a threat to the channel and a barrier to the Cloud becoming mainstream:
“Resellers have an incredible opportunity to adapt their business model to embrace Cloud technology. They have the chance to bet their business on those vendors that deliver genuine Cloud solutions and are willing to support them on their transformation, otherwise they risk losing traction, customers and revenue.”
The channel, particularly smaller resellers, have become used to the revenue from upfront licences, a traditional financial management model where it is easy to manage revenue against forecasts. However, monthly subscriptions for Cloud services are disrupting that financial model and resellers will need to adapt quickly if they are to realise the benefits that this can deliver in recurring revenue.
Janette added: “We understand that moving to a Cloud-first approach isn’t straight forward, but we are seeing interest from businesses for the benefits that the Cloud can deliver. Together, we can make a difference and I believe it’s up to vendors like Advanced to develop long-term strategic channel partnerships, demonstrate the Cloud as the number one driver for business continuity, and provide resellers with the right ongoing training, support and marketing so that products can be sold and supported in the Cloud effectively.”