- May 3, 2022
- Posted by: lmaziejka
- Categories: Changing Channels, Podcasts, Strategy
Ingram Micro Cloud’s John Dusett joins Changing Channels host Larry Walsh to discuss new cloud research — conducted by Channelnomics and supported by Ingram Micro Cloud, Microsoft, and Google Workspace — and how the customer experience is crucial when it comes to service renewals and expansions.
The cloud computing market continues to grow at double-digit rates. Over the next decade, businesses will continue to migrate systems and mission-critical workloads into cloud environments. They’ll adopt cloud-based applications to replace legacy client-side licenses, and they’ll subscribe to managed services to support their cloud resources.
To say that it’s a good time for reselling and supporting cloud computing services is an understatement. According to our recent report — “Buying the Cloud: The As-a-Service Experience From the Customer Perspective” — 47% of SMB IT buyers, the prime target for the channel, plan to buy more cloud computing products in the next 12 to 18 months. End users are adopting infrastructure services, productivity software, business applications, and backup services. Moreover, they’re expanding their cloud utilization to include customer support applications and Internet of Things infrastructure.
Cloud computing provides solution providers with recurring revenue. Customers pay for services on monthly or annual schedules, providing resellers with predictable income. The recurring-revenue model works well as long as the customer keeps paying, renewing contracts, and expanding service utilization. As solution providers have learned through managed services, customers are more apt to expand their cloud capacity when they have positive experiences and recognize the value of their spending.
Customer experience is becoming a significant factor in solution providers’ cloud value proposition. While vendors are the source of cloud services, solution providers are the managers of cloud resources and customer experiences. If solution providers can facilitate a positive, seamless experience, customers are more apt to renew and expand their cloud contracts. According to the research conducted by Channelnomics and Ingram Micro Cloud, 38% of cloud buyers base their decision to renew contracts on their experience with a solution provider.
In this episode of Changing Channels, John Dusett, Ingram Micro Cloud’s executive director of cloud services for the United States, joins us to discuss the increasing importance of customer experience in cloud computing engagements and what solution providers need to do to impress and satisfy their clients.