As businesses increasingly rely on cloud services, the choice between cloud reseller subscriptions and direct subscriptions from major providers like AWS, Azure, and GCP becomes crucial. AWS, GCP, and Azure significantly depend on their channel partners globally and in the Asia Pacific region. Generally, channel partners drive a large portion of IT spending, including cloud services. In 2023, channel partners are expected to drive more than 70% of IT spending. In the Asia Pacific region (excluding China), 35% of cloud spend goes via the partner ecosystem.
This article provides insights into the advantages and disadvantages of subscribing to cloud services via resellers for business owners, enterprise CxOs, and IT professionals.
Advantages of Subscribing via Cloud Resellers
1. Cost savings: Cloud resellers often offer better pricing and discounts due to their partnerships with major cloud providers. This could result in savings compared to purchasing the services directly from cloud providers at the standard rate.
2. Customized solutions: Resellers can provide tailored solutions that cater to an organization’s specific needs, combining services and features from multiple cloud providers.
3. Expertise and support: A company without in-house cloud expertise might struggle to set up and manage their cloud infrastructure. By working with a cloud reseller, they can access a team of experts who can provide guidance on best practices, troubleshoot issues, and offer ongoing support.
4. Simplified billing and management: Working with a cloud reseller can simplify billing and management, as organizations have a single point of contact for all their cloud services, making it easier to track and manage cloud spending.
5. Value-added services: Cloud resellers might offer a comprehensive cloud migration consulting service, guiding businesses through the process of moving their applications and data to the cloud. Additionally, they might provide training sessions on best practices for managing and securing cloud resources, ensuring that the organization’s staff is well-equipped to handle the new cloud environment effectively, which can help organizations maximize the value of their cloud investment.
Disadvantages of Subscribing via Cloud Resellers
1. Limited control: An organization that requires full control over their cloud infrastructure might find that working with a reseller limits their ability to make specific configuration choices. For example, they might not have direct access to certain settings or features that are only available when subscribing directly from the cloud provider.
2. Dependency on reseller: When working with a cloud reseller, organizations may become dependent on the reseller for support, tools, updates, and maintenance. There is a potential to face challenges if the reseller goes out of business. For instance, they might have to scramble to find a new reseller or switch to a direct subscription, which could cause downtime and additional costs.
3. Data security and privacy concerns: Using a third-party reseller might raise issues over data security and privacy, especially if sensitive customer and employee data is stored in the cloud. Companies can be concerned that the reseller could access their data or that the reseller’s security practices might not be as robust as those of the major cloud providers.
Case Study: A Leading Manufacturer of Curry Mixes and Spice Powders
Phase 1: Implementing SAP S/4HANA on AWS Infrastructure
The company partnered with a cloud reseller to implement SAP S/4HANA on AWS infrastructure, leveraging various AWS services and tools. This partnership resulted in reduced processing time, cost efficiency, and increased performance for the company.
Phase 2: Expanding Footprints on Cloud with HR Software
After the successful implementation of SAP S/4HANA, the company decided to expand its cloud presence by automating HR operations. They chose the same cloud reseller and AWS to implement a leading HR software, which offers a complete suite of human capital management and payroll solutions. The implementation of the HR software resulted in reduced operational costs, automated day-to-day operations, and improved recruiting function, employee satisfaction, and team management for the company. The cloud reseller and AWS provided the necessary support and security for the company’s cloud-based solutions.
Subscribing to cloud services via resellers can offer cost savings, customized solutions, and additional support. However, organizations should carefully consider the potential drawbacks, such as limited control and dependency on the reseller. Ultimately, the decision to subscribe via a cloud reseller or directly from a major provider should be based on an organization’s specific needs, priorities, and risk tolerance. By weighing the advantages and disadvantages, businesses can make an informed decision that best suits their requirements and ensures a positive, secure, and efficient cloud experience.
- Mohd Atasha (LinkedIn)
- Regional Director. Asia Pacific except Japan (APEJ)