Opportunities for early adopters By Sean Fane, Managing Director, Spectrami UK
The race to adopt and provide new technologies will become critical In 2019, we’ll see many resellers struggle financially due to an unwillingness, or inability, to adopt new technologies on time. Quite simply, channel businesses become stuck in a comfortable business pattern that becomes harder and harder to break out of – from commission structures to customer and vendor relationships. Yet, if resellers can identify and begin offering the next big thing when it is still becoming popular, they will have much greater revenue opportunities – not only from higher margins from a yet-to-be commoditised product, but also from being one of the main providers of exciting and disruptive new technology.
Resellers that stay in their fixed way of working, offering the same products and services to the same customers and relying on updates and upgrades to generate enough additional revenue, will miss the opportunity to change and adopt new client offerings. 2019 will be the year we see these resellers start to get punished by their customers as new emerging technologies, such as Microservices and a revised approach to cloud, steal the limelight and ultimately business spending.
Containers will enter the mainstream – but only after mis-steps
2019 will see a lot of excitement around Microservices and Containers – together with a lot of potentially empty hype. As a result, there will be a significant number of mis-steps from organisations that don’t get implementation right first time. Ever increasing demands on IT teams to be more agile and to deliver services faster will drive leaders to adopt technologies like OpenShift, Docker and Kubernetes before they have a clearly defined strategy or appropriate underlying visibility and security. Resellers that can position themselves to help customers through this period of change – offering the support, management and the right technology needed to avoid making costly mistakes – will see the most benefit from this new approach and avoid missing out on significant revenue opportunities.
Resellers and businesses alike will migrate towards open-source
Resellers will increasingly start to build open source software into their portfolio as the low cost and increased ﬂexibility on offer tempt more organisations to use it to deliver their services. IBM’s acquisition of Red Hat shows that open source is becoming a significant financial opportunity. While resellers might initially see open source as a threat, as their customers purchase lower cost products and adapt them more themselves, there are opportunities too. For example, management and support services will open up significant revenue streams, as will partnering with vendors that offer their own modifications and support models on top of an open-source base. As uptake picks up, open source will become a significant revenue stream.