More Choices, MoreConfusion:

It Pays to Be a CloudService Reseller

6X

74%

23%

63%

10X

55%

1.6X 2.4X

48% 45%

14% PaaS14% IaaS

84% 63%

Market SnapshotCloud services are quickly becoming an essential part of business strategies for providers, distributors, and customers alike. In fact, companies are spending more on public cloud services than ever before.

Those numbers represent a CAGR of

faster than the ITindustry overall.

Confronted with an increasing number of choices, cloud service buyers are looking for trusted advisors to simplify the purchase process and make it as cost-e�ective as possible.

Companies that partner to sell cloud services are more pro�table and grow faster. Cloud-oriented partners enjoy:

Providing and provisioning cloud services (e.g. reselling)is anticipated to have the greatest growth potentialover the next two years.

Resellers are ideally positioned to �ll this critical role, but knowledge is key. In fact, the top reasons customers choose a cloud partner are

Over the next few years, the cloud services developer community is expected to triple, which will help drive a

increase in the numberof cloud-based solutions.

HERE’S WHERE THEINVESTMENT GOES:

fastergrowth

of resellers say demandfor cloud services ishigh or very high,

of general channel �rms

moregrosspro�t

…VARs are looking to get into the cloud resell business

in a big way… Reseller numbers for [cloud software services]

are projected to rise dramatically... For VARs refusing to

embrace cloud — R.I.P. – Forrester

RESELLERS TO THE RESCUE

Cloud Service Commerce:The Reseller Opportunity

72% SaaS

2013 2014 2018

$56.6B

$127B

$45.7B

want an establishedpartner relationship

want one source forall cloud services

Cost Expertise Reputation

Customers clearly place ahigh value on good adviceat a reasonable price.

VS.

Demand for cloud services is high, butresellers report the highest demand.

IT Resellers and Telcos: Convergence Creates Opportunities

Supporting Reseller Success

1/3 51%

4 1052%

50%

www.appdirect.com/reseller | sales@appdirect.com | 877-404-2777

73%About

IN

Technology is driving convergence across theIT and telecom sectors, which means players onboth sides are re-evaluating where they �t in.

As cloud-based solutions become more complex, resellerscan �nd themselves managing a wide range of services,from billing, to user management, to customer support, too�ering a single point of access, and more.

of IT VARs o�er “traditional” telecom services,such as broadband and Wi-Fi, and morebusinesses of all kinds are turning to telcosfor a broad range of IT. Given this, IT-telecompartnerships are increasingly common.

When IT VARsselect partners,

choose telecomcarriers

choose IT VARs as their�rst partner of choice

When telecoms partner,

Cloud service commerce is incredibly competitive and resellerscan run into trouble trying to di�erentiate in a crowded marketand keep up with demand. During the course of business,

TO BE SUCCESSFUL, RESELLERS NEED TOCHOOSE THE RIGHT VENDOR PARTNERS FORTHEIR BUSINESS AND THEIR CUSTOMERS.HERE ARE THE TOP FACTORS RESELLERS SAYARE VERY SIGNIFICANT WHEN CONSIDERINGTHEIR OPTIONS:

say customer demand outpaced theircapacity to deliver

2 10INlost a deal because a customer wanteda cloud solution they didn’t have

SOURCESIT VARs & Telecom Service Sales: State of the Channel Report, Channel Partners and CompTIA, 2014

Fourth Annual Trends in Cloud Computing, CompTIA, 2013

Cloud Channel Trends, 2013 to 2014, Forrester, 2013

IT VARs: Success in Selling Telecom Services Through Strategic Partnerships, Time Warner Cable, 2014

Worldwide and Regional Public IT Cloud Services 2014–2018 Forecast, IDC, 2014

Successful Cloud Partners: What IT Solution Providers Need To Know To Build High-Performing Cloud Businesses, IDC, 2014

The Critical Role of Channel in Driving Cloud Adoption, Cloud Industry Forum, 2013

Customer preference / demand for vendor services:

Type / variety of cloud services:

48%Vendor brand reputation:

HERE IS A SHORT LIST OF ENABLEMENT FEATURESTHAT RESELLERS SAY WOULD HELP THEM MOST:

43%Management and

maintenance of online

application store /

marketplace35%Billing and usage

metering for cloud

services 34%An online store /

marketplace for

cloud services

Contact us for more information about o�ering a comprehensive reseller solution to help drive sales.