Channel Partners

FAL 2015

For 25 years, Channel Partners has been a resource for indirect sales channels, such as agents, VARs and dealers, that provide network-based communications and computing services, associated CPE and applications, and managed and professional services

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The Cloud Services Community is where Traditional IT Partners, Born in the Cloud Partners, Service Provider Agents and MSP's come to learn how to build a more successful Cloud Business. The community features webcasts, whitepapers, research, best practices and how-to information from executives who have already set up successful Cloud businesses. No other community provides the impartial advice and unique peer-to-peer guidance from industry leaders like the Cloud Services Community, and membership is free! To join, simply visit: Make connections and fnd resources to grow your business Join the community that helps elevate your business in the Cloud with 4 percent, and Rackspace with 3 percent. But market share isn't the whole story. While Amazon grew 51 percent year-over-year, Microsoft almost doubled that rate with 96 percent growth, and Google enjoyed 81 percent growth. The market is in flux. While Amazon still beats its top four competitors combined, that is poised to change. So evaluations take more than just looking at the numbers. Perhaps the most well-known gauge of leadership in the IT industry is the Gartner Magic Quadrant, in which the analyst firm evaluates companies in a given sector based on its definition of completeness of vision, moving from left to right, and ability to execute, moving upward. The competitor furthest up and to the right is therefore considered superior. In the most recent Worldwide MQ for Cloud Infrastructure, released in May, Amazon Web Services is the clear leader in ability to execute, at least by Gartner's standards, with completeness of vision just slightly better than its top challenger, Microsoft. The fact that Synergy Research's No. 3 market share leader, IBM SoftLayer, barely sneaks into the Visionaries quadrant, with much lower ability to execute, demonstrates that including hardware and software revenues along with cloud services may skew the numbers, making revenue the wrong place to look for leader- ship until reporting improves. So where does that leave you when deciding who to partner with? Let's break down strategies for the four dominant players according to Synergy, with an emphasis on doing right by both simple and complex customer needs. INSIDE THE BIG 4 PLAYBOOKS AMAZON WEB SERVICES: Still concerned that Web services is an "afterthought" business to Amazon? "In terms of profit potential, Amazon is a cloud infrastruc- ture provider disguised as an e-tailer," wrote ZDNet editor-in-chief Larry Dignan in April, pointing out that all of Amazon's North American sales gener- ated $517 million in the first quarter of 2015. AWS by itself generated $265 million. While Amazon has a diverse customer base and the broadest range of use cases, according to Gartner's ranking, including enterprise and mission-critical applications, the firm also points out that AWS can be a complex vendor to manage. Many services and features that are bundled in by other cloud providers are a la carte with AWS, which further skews price comparisons. Most customers will need third-party cost and operations management tools. While many "simple" Mode 1 requirements can be fulfilled by Amazon, Gartner says AWS has the richest array of IaaS features and PaaS-like capabilities and that it's rapidly expanding its service offerings. That means AWS is most attractive to customers .: AWS at a Glance At his July keynote to the Amazon Web Services Summit, CTO Werner Vogels dropped some impressive stats: More than 1 million businesses had migrated some or all of their IT infrastructures to AWS as of June 2015. AWS runs systems for 4,500 educational institutions. It added 516 major new features and services in 2014 and is on track to surpass that number in 2015. Airbnb, the thriving shared hospitality startup, runs with an in-house IT staff of five. AWS has 10 times the capacity of all other cloud providers combined, according to Gartner. 10 CHANNEL PARTNERS FALL 2015 FEATURE

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