FD Insights Issue 6 | Page 32

Moving Your Business to the Cloud By Kevin Derman Moving your business to the cloud needn’t be a headache. First for Cloud offers a simple way to take advantage of the inherent profitability of the current market shift. Over the past five years, IT companies from vendors and VARs to distributors and even retailers, have been speaking about migrating to the cloud. The reality is if you are only strategising this element into your business now, you may have already missed the boat. IDC, a global market intelligence firm, calls this recent area of phenomenal growth ‘The Third Platform’. A company needs to take time to: 1. 2. 3. 4. 5. Understand the market Understand the technology Select the technology they are going to use Implement the technology Educate their team and customers around the new offerings This Third Platform encompasses not only cloud, but mobility, big data analytics, and social business as well. In fact, IDC predicts that by 2020, 98% of all IT growth will come from this area. For most companies, the real inhibitor to either starting up a cloud business or growing their current cloud business is resources and building a compelling set of offerings. I have heard numerous stories of resellers who try to start up a cloud division, only to neglect their traditional business. The reason for this is simply the amount of time, effort and skill required to launch a set of cloud offerings. 30 | www.firstdistribution.co.za 3 revenue growth As an IT reseller in Africa, you are in the right place at the right time. This area is currently experiencing double digit growth and is expected to continue along this trajectory. 35% of worldwide IT revenues are expected to come from emerging markets over the next few years and cloud spend is anticipated to grow at a sevenfold rate compared to a threefold rate in non-emerging markets. 2 1 a b e cd time