Transition to Cloud Disrupting Resellers Eco-system

October, 2017 -Today's economies are radically changing, triggered by the accelerated augmentation of new technologies. Any change in the existing technology or the emergence of any new technology heralds’ the beginning of a creative revolution for that industry. Whether it's the IT, retail, hospitality, healthcare, or restaurant industry, each sector has to adapt itself to the changing dynamics of the market ecosystem. One such industry which is witnessing a creative revolution is the IT industry and cloud technology is at the center of the transformation of this industry.

The Cloud Market Opportunity

Gartner predicts that by 2020 businesses without cloud capabilities will be as uncommon as businesses without Internet are today. IDC’s CloudView survey of approximately 10,000 end-customers globally reveals a majority of respondents considering adoption of public cloud services.

Cloud Market Opportunity

In essence, Cloud-based technology represents an immense opportunity for IT solution providers to deliver modern capabilities to their customers. As a result, many major tech manufacturers now offer cloud partner programs that provide resources and access to rich ecosystems, allowing channel partners to quickly expand their cloud services and support customers in new ways. One such example is of Microsoft that has transitioned its partners from an Online Services Advisors program to Cloud Solution Provider (CSP) program

Online Services Advisor (OSA) Program from Microsoft

OSA was the oldest and traditionally simplest way for resellers to earn revenue from Microsoft cloud solutions. Under the “Advisor model” end users purchased licenses directly from Microsoft, and got their invoices and frontline technical support from Microsoft as well. Resellers identified as “Partner of record” during the sign up process received a portion of the customer’s subscription fees.

Microsoft Cloud Solution Provider (CSP)

Introduced in July 2014, Microsoft Cloud Solution Provider (CSP) program shifts responsibility for billing and support to partners, and pays them higher fees in return. CSP offers partners control over their customer accounts, something they lobbied Microsoft to provide for years.

The figure below depicts the 5 key value tenets Microsoft partners are experiencing from participating in the CSP program.

Source: IDC e-book sponsored by Microsoft

The study conducted by Worldwide Partner Group depicts that the successful Microsoft cloud partners experiences 1.4 times the revenue growth, and, makes 1.5 times the gross profit. The profit is not only greater, but it’s more sustainable over time, with cloud partners seeing higher gross margins from the recurring revenue streams.

Partner Group
Source: Study by Worldwide Partner Group

But like any other business model, the CSP comes with its own challenges. The evolution from Advisor to CSP has brought some major changes in how value added resellers conduct their business of selling cloud services, especially Office 365 and Azure subscriptions. Formerly, the license holders directly paid Microsoft and the VARs received a commission from Microsoft for each sale, but the CSP model does not entitle VARs to a commission directly from Microsoft. This means the resellers need to rethink their business strategy for Microsoft services and look for new ways to drive commissions and an overall profit on their product sales.

Given below are some of the other challenges that Microsoft partners need to overcome to encash the opportunities offered by CSP program:

  • Transitioning their business to cloud from on-premises without disrupting end user subscriptions
  • Development of talent in the organization to support the transition
  • Infrastructure to provide dedicated 24*7 technical support
  • Managing customers billing
  • Ability to scale to business demands in a short span of time

With such challenges, it can be a daunting task for resellers to truly leverage the opportunities offered by Microsoft CSP program. One way to adapt to the changing dynamics is to partner with a service provider who has the necessary infrastructure in place to offer provisioning, billing, invoicing, technical support and administration, enabling the resellers to bundle the Microsoft Office 365 and Azure product with their own solutions and create unique offers for their customers without making any upfront costly investments.

Quatrro is a channel-friendly partner that empowers resellers to deliver Office 365 and Azure services with end-to-end management of the customer lifecycle. From the initial assessment to deployment, Quatrro can manage your workload, enabling you to stay focused on your core business. Our white label offerings can be provisioned and branded under the company name and specifications of the resellers enabling them to go to market quickly. Our billing services include automated billing / invoices and payment reminders to end user, comprehensive audit trail, real-time sales tax update, management of complex pricing, and automated and real-time payment applications to open invoices. Our services for the end users include automated request manager portal where they can modify or cancel orders, along with 24*7 customer helpdesk support with online ticketing tool and over the phone support. The end user has access to view their invoices, payments, historical transactions and online payments. Quatrro also offers multi-language Tier 1 and Tier 2 support for Office 365 and Azure including escalation to Microsoft, along with centralized support for Exchange Online, Lync Online, SharePoint Online & OneDrive.

Our unique value proposition:

  • Hands-On billing management through automated provisioning and hassle-free billing support enabling resellers to focus on growing their business
  • High control on customer lifecycle management enabling partners to build closer relationships with their customers. The customers have the partner as a single point of contact for all their interactions regarding the cloud service.
  • Lucrative monthly incentives and better margins - The resellers can save huge administrative costs and get billing and subscription related services at highly affordable prices, without having to hire personnel for handling the billing activities for all Microsoft product sales.
  • Access to certified engineers and Subject matter experts without having to employ in-house teams to address any concerns or technical setbacks so that they can streamline their core business activities concerned with selling Microsoft cloud services.
  • Up-Sell and Cross-Sell Opportunities
  • Fully White Labeled Offering

For more information about our cloud offerings, please contact us.