SaaS and Cloud Computing, Channel Is Far From Dead

One of the misconceptions of the Software-as-a-Service (SaaS) and broader cloud computing market is that these new Web-based services will “disintermediate” the channel because of their simpler, more user-friendly solutions, and direct sales  and delivery business models. While there is no question that the role of the traditional channel will be significantly impacted by the rapidly evolving on-demand services market, there is still plenty of room for innovative channel organizations to operate. There are also plenty of opportunities for new channel partners to succeed. Traditional value-added resellers (VARs) and systems integrators (SIs) that are primarily focused on capitalizing on the complexities of legacy applications are certainly at risk as a result of the fundamental feature of today’s SaaS solutions and cloud computing services its simplicity. By eliminating the complexities of deploying software and systems, reducing the need to extensively customize these solutions and systems, and lowering the costs of operating them, SaaS and cloud computing take a big bite out of all the marginal costs which historically represented the primary profits of traditional VARs and SIs.

However, there are still lots of modifications which VARs and SIs can make to today’s basic SaaS solutions, as well as reconfigurations they can make to the basic cloud computing services, to justify their role as these markets grow and mature. User organizations of all sizes still need help evaluating and selecting the rapidly expanding array of SaaS providers and cloud computing vendors. They need help catering these services to the specific business and technical needs of their organizations. They need help integrating third-party solutions to the basic SaaS application or cloud computing functionality. They need help optimizing their performance. They also need help changing their business processes and training their people to effectively utilize their on-demand services.

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