Cloud Computing

CLOUD COMPUTING

Since its beginning, cloud computing has been at the forefront of Internet-based technologies and continues to be so to this day, which, as a consequence to more companies adopting cloud technology, has traditional IT distributors running the risk of becoming obsolete. However, should IT distributors take proactive rather than reactive steps to address this problem, we could witness a rebirth in IT distribution rather than its death.

In order to fully understand the threat that IT distributors are being faced with, we must first look at and understand the root of the problem, beginning with the traditional distribution system. Initially, IT distribution channels were composed of IT vendors, master distributors, resellers and customers. As cloud computing gained traction in the IT market, it brought with it a new process that focused around customers' wants and needs. This new process did not only restructure the traditional distribution system itself but it also added new components. Thus, under cloud computing the new distribution chain is composed of vendors (hardware/software manufacturers, cloud computing source companies, technology products providers), service providers (who bridge infrastructure between cloud computing service providers, vendors and final customers), distributors and cloud aggregators (that consolidate resources and applications for resale), system integrators (that build private/hybrid clouds and implement cloud apps/SaaS for clients), value added resellers and managed service providers (that resell cloud services with an added value they might provide).

It is clear from this new model that cloud computing has broadened the traditional value chain by offering new services to users, cloud service aggregators, while, at the same time, putting distributors in a situation where their service of trading goods on purely strong infrastructure and market relations is falling short of customer expectations.

Now that...