September 6, 2011
A recent comment by Rene Bergeron, VP of service and cloud computing for Ingram Micro gave a clearer meaning and clarity to IT in the Cloud and Its Value Proposition. She compared technology solutions to – on premise managed and cloud – to real estate – houses, condos, and hotel rooms.
She starts by likening on-premise solutions to home ownership. The capital investment is high, the levels of control by the home owner are high, and the risks lie entirely within that owner. Similarly, when a customer chooses to pursue an on-premise technology solution, the capital investment can be high, the maintenance, and risk sits with the business and ultimately, the system integrator that built the on- premise network.
With the managed services model, the responsibility is split between the business and its solution provider, much as when a person owns a condo. So just as you own your condo, but still pay monthly condo fees to offset the costs of maintenance of your condo, in managed services IT model, a customer owns its on- premise network, but pays a monthly fee to a provider to handle management and maintenance issues. That provider then assumes more responsibility and shares more risk with its customer.
To explain the cloud scenario, she suggests that cloud is more like renting a hotel room than owning any real estate. The business owns nothing, but can rent the room as needed, use it as long as needed and walk away. The business assumes little risk. Cloud computing is similar in that the provider at the vendor level owns the computing power, and can slice off availability for solution providers and their customers as needed. The risk lies entirely with the vendor.
With questions still rampant about what exactly cloud computing means, perhaps this is one of the simplest for both channel IT businesses and their customers. Why might this be a better way of understanding what it is all about? Seems a lot better than trying to explain it than the normal format –the technology-driven explanation! In most cases the recipient is more confused. Plus having a real-world example to explain the value of on-premise, managed services, and cloud allows the MSP (managed service provider) or VAR to talk about business, not technology. Plus, understanding and then using the cloud/hotel room example with customers interested in cloud computing also opens the door to better explaining the value of the cloud. As a solution provider stick with the solution of cloud computing as similar to a hotel room, it will resonate when you talk about agility – instant access to the computing power you need: utility –pay for only what you use: and ubiquity – access anytime you need it , anywhere you need it
In all of your sales endeavors, you might think of this example. People buy because they understand –they ‘get ‘what you are selling. Learn to package your thoughts around something they have experienced and can quickly see in their mind.
