News in the Channel - issue #30

CLOUD

How channel partners can seize the cloud opportunity Cloud has become a cornerstone of many businesses, but there is still a largely untapped market out there that channel partners should be targeting. By Aaron Rees, senior vice president, AWS Business at Westcon-Comstor and CEO, Rebura (a Westcon-Comstor company).

In just a few years, cloud has matured from a disruptive force to a cornerstone of the business and technology landscape. With the incredible rise, influence and reach of the hyperscalers, it can sometimes feel to those of us working in the space that cloud has become omnipresent. It’s worth reminding ourselves then, that for cloud service providers, specialist cloud consultancies and channel partners, there is still a huge untapped market out there. As Amazon CEO and former AWS leader Andy Jassy pointed out last year: “85% or more of global IT spend remains on-premises.” In the same earnings call with investors, Jassy said that AWS’ generative AI strategy is encouraging more companies to ditch their on- premises IT environments in favour of the cloud, creating huge growth opportunities for AWS and the wider AWS ecosystem. According to one estimate, the global cloud market is projected to grow from $676.29 billion in 2024 to $2,291.59 billion by 2032, with a CAGR of 16.5%. Meanwhile Canalys has forecast that global cloud infrastructure services spending will grow 19% in 2025, as hyperscalers expand investments in cloud and AI infrastructure to keep pace with rising demand.

Barriers to partner success So how well placed is the channel when it comes to capitalising on these opportunities? That’s the subject of Westcon-Comstor’s new Mastering the Maze report, which surveyed nearly 900 resellers, MSPs and system integrators across the UK and seven other countries. The research lifts the lid on the obstacles facing partners as they look to secure a piece of the cloud prize. It suggests that while the channel is gearing up for cloud growth, many partners are wrestling with a series of practical, technical and operational challenges. Supply and demand Chief among these is a lack of technical cloud skills within partners’ own businesses. Indeed, 44% of UK-based partners cited skill shortages as a barrier to meeting their customers’ cloud requirements. Set against the fact that 77% of UK respondents said their customers are looking for specialised cloud skills, it’s clear there is a gap. End users are seeking external cloud expertise, but partners are struggling to meet demand. Closing this gap through upskilling is vital if the channel is to play a significant role in the next phase of the cloud revolution. As one partner interviewed for the

Aaron Rees senior vice president, AWS Business

westconcomstor.com

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