Why Should You Sell Solutions "Born In The Cloud"?

By Joel Doherty, Global Strategy and Business Development, Epson Cloud

The “cloud” is where everyone wants to be; yet few know how to get there successfully. Why does the cloud remain somewhat elusive to the channel and VARs, and how can we remove the barriers to entry for all? Let’s first look at the “why” part of this question. Why should you sell cloud-based solutions at all? 

Many VARs have decided to pursue cloud opportunities. Some may have engaged in the development of their own cloud-based software solutions, while others may have commenced reselling strategic cloud and mobile services to complement their existing point of sale (POS) and technology portfolios. Below is a closer look at what they are missing and why this is an important business move forward:

• Development Of New Revenue Channels. In a traditional reseller model, VARs live for that initial hardware and software sale, the big-ticket item that is their bread and butter.  By exploring simple cloud and mobile solutions, they can develop new revenue channels for their business that compliment the big ticket POS/technology purchases that are their sweet spot today. Recurring monthly revenue, revenue share on data services, additional support contracts, and upselling hardware enhancements are all new revenue opportunities to leverage with their existing customer base. This is important because selling to the existing base is infinitely easier and less costly than chasing that brand new customer they have never worked with before.
• An Expanded Product Suite. Whether a VAR choses to partner with best of breed cloud and mobile software partners, or leverage cloud offerings from incumbent POS relationships, the opportunity to expand their product offering and deliver more value, end-to-end solutions and consultative sales becomes a short term reality. Clients are all looking for the “trusted advisor” relationship and this is achieved by being the primary point of contact for all their technology needs.
• Developing The “Trusted Advisor” Relationship With Your Customers. Imagine an existing client is about to upgrade all of their POS systems to standardize on a single platform so they can start to source better enterprise data and leverage cloud services across their operating locations. This would be followed by a substantial invoice and service contract. What if instead, a VAR advises his customer to proceed with the POS upgrade because a standard platform makes more sense for other reasons, such as maintenance, support and single point of contact for the enterprise?  The reseller can then advise the client to look at some of the alternative methods to deploy best of breed cloud-based solutions such as loyalty, inventory management, labor, employee performance, online ordering, data analytics and more, independent of the POS upgrade. There are options to deploy cloud solutions outside of integrating with the POS today. This type of solutions can reduce the “time to value” on behalf of a customer and demonstrate that a VAR is focused on helping them succeed.  In many projects, brands applaud the idea that Epson will partner with their VARs to deploy intelligent receipt printers that enable the delivery of cloud services in 30 to 60 days.  This provides the customers with enterprise cloud and mobile options that generate recurring revenue for the VARs in a much shorter timeframe than any POS upgrade path would represent. The short-term financial model is compelling, but the long-term financial gains earned as the “trusted advisor” to customers is invaluable.
• We Are All Going Through A “Pivot” In Our Go-To-Market Plans Right Now. Businesses must demonstrate some focus and engagement with cloud and mobile services.  The market is pivoting and technology businesses big and small are making the move to cloud services as a strategic direction and as a practical response to the rapidly changing world of retail and hospitality. Those who do not have an indirect, or direct level of participation in the cloud offerings that are driving these market segments, are going to wake up one day and have a Kodak moment in which the technology world has passed them by. Kodak did not believe digital imaging was that much of a threat, but they were wrong. 

VARs are more nimble, more responsive and may already have the early seeds of a “trusted advisor” relationship planted within key accounts. Their ability to carefully and pragmatically explore and experiment with cloud opportunities carries little risk, yet likely brings tremendous rewards. VARs should look at cloud opportunities that are explicitly independent of the POS systems, or seek new partnerships with middleware and intermediary solution providers that can help bridge the gap between the POS data that has been the center of our proverbial universe and the cloud services that now reign supreme.

It’s time to make that pivot, but to do so cautiously and with the right solutions that are strategically aligned with a VAR’s business and technology portfolio.

You can contact Joel Doherty, Global Strategy and Business Development for Epson Cloud, at Joel_doherty@ea.epson.com.