ChannelLife New Zealand logo
Industry insider news for New Zealand's technology resellers
Story image

Exclusive: Gartner outlines the new local reseller role in a world of cloud

By Heather Wright
Thu 18 Aug 2016
FYI, this story is more than a year old

Infrastructure-as-a-service may spell the end of some of the big hardware deals for local resellers, but it’s opening the door to new opportunities in consulting and managed services Gartner says – but resellers must wean themselves off the traditional model and invest and fight for the skills to become consulting lead.

Michael Warrilow, Gartner infrastructure software team research director, says consulting services, managed services and operation opportunities around infrastructure as a service are a growing opportunity for resellers across Australia and New Zealand.

Warrilow says the growth of companies such as Amazon – growing at 80% year on year or greater – highlights the opportunity for resellers.

“Enterprises are just starting on that journey, so the services piece will continue to grow,” he says, noting managed services are ‘coming along quite strong’.

Gartner is currently doing research to find out which companies are starting to develop ‘good skills and certifications’, something he says is essential for channel companies if they wish to play in the market.

“Have they got the Amazon certifications, the Azure certifications, are they doing all the enablement so they maximise their reseller opportunity and also their service opportunity to manage the cloud environment?,” he says.

“That’s kind of the new news here,” Warrilow says. “While they might not sell the hardware, they might not sell the software to these existing clients, there is definitely the opportunity to manage Amazon and Microsoft for their customers.”

He says that can cover design, migration and potentially operation, including not just infrastructure, but any application modification.

“There is quite a bit of consulting services, managed services and operation opportunity around infrastructure-as-a-service, and it’s growing,” he says.

Resellers, he notes, are essentially moving increasingly into more of a ‘consulting shop’ rather than a reseller.

Warrilow says certification is an increasingly important need, with certification ‘a real simple way to differentiate’.

“There’s 100 to 150 at best on the Amazon partner network. There are others doing it that don’t have the certification and that’s the easy way to get knocked out of the opportunity.

“There’s the simple cost of sale, but then it’s how do you build a recurring, repeatable amount of services business – or are you going to play in the more high margin design part of that?

Resellers wanting to secure their slice of the design market will need to invest not only in certifications, but also in design skills. “And then you’re competing for the smart resources that are out in the market,” he notes.

Nevertheless, Warrilow says prospects re good for local resellers, despite the presence of big global and national players.

“There is no reason why the global guys have to be any more successful. This is an opportunity where the customer is going to want to see and touch and talk to the skill, so the local guys do have a sustainable opportunity in that respect.”

However, he says the local reseller channel must wean itself off the traditional reseller business model and ‘invest and fight for the skills to become consulting lead’.

Warrilow urges resellers to flip the ‘don’t just stand there, do something’ maxim on it’s head to focus on where their future lies.

“They’ve really got to do the opposite: don’t just do something, stand there – spend a day each quarter and see how your business mix is.

“I suspect there will be an increase in services – so a more people-dependent business, which is always a challenge – and generally a slight decrease or change in hardware and an increasing mix of software with things like software defined storage and SDN taking the place of some of the traditional hardware like storage arrays and some of the networking equipment.”

Warrilow says its unlikely that hardware revenues will be able to hold their own with the growth of public cloud, but that doesn’t mean there aren’t bright spots in the hardware segment.

“Hyperconverged is growing as fast as public cloud,” he says.

He says security too, offers bright spots for resellers.

“Generally the industry is warming to the fact that cloud isn’t less secure and, in fact, it can be more secure because you are investing in people who have it as a core competency and at scale,” he says.

“However, as you become dependent on third party suppliers there is a need to ensure that your boundaries are secure and the exchange of information is equally secure with your suppliers and so forth.”

That means security remains a critical need in enterprise – accounting for three percent to five percent of all IT spend. “And I don’t expect that to reduce at any time,” he adds.

“So there’s a piece there, there’s software defined security and security services, and there will still be a need for security hardware at the networking layers, design, risk management – all that will continue.

“It is probably one of the more sustainable areas of opportunity for the channel because security threats are not standing still or going away.”

Related stories
Top stories
Story image
Hands-on review: Huawei Watch D smart watch
The Huawei Watch D is the latest flagship smart watch from the Chinese tech giant, and it's further proof that the company is more than capable of competing with the likes of Samsung and Apple in the highly competitive wearable market.
Story image
Hands-on review: OPPO Find X5 smartphone
With the release of the new OPPO Find X5 in March, we got the opportunity to explore another one of their premium devices.
Story image
Hands-on review: JBL Flip 6 portable speaker
Once you switch it on, and listen away for up to 12 hours, you will quickly realise that this is a little speaker looking for a party.
Story image
Tech job moves
Tech job moves - Fastly, INX, Kinly, SmartBear & Vectra AI
We round up all job appointments from July 29 - August 12, 2022, in one place to keep you updated with the latest from across the tech industries.
Story image
Samsung introduces new generation of foldable smartphones
Samsung has unveiled its new range of Galaxy Z smartphones, bringing new developments to the company’s foldable smartphone portfolio.
Story image
Dicker Data
Dicker Data brought on as Acronis partner for A/NZ
The news about the partnership comes in as cyber criminals continue to exploit gaps in traditional solutions and strategies in NZ and across the APAC region.
Story image
Red Hat
Red Hat announces 2022 awards winners for A/NZ region
Red Hat recently acknowledged Australia and New Zealand partners with its annual awards, highlighting partners across various categories.
Story image
Financial results
Jade Software’s plan to get back to surplus in 2022
Jade Software has released its latest financial report, revealing that the company has kept its loss low from $567,000 in FY 2020 to just $153,000 in FY 2021.
Story image
Spectralink DECT devices now integrated with Microsoft Teams SIP Gateway
Spectralink DECT devices are now integrated with Microsoft Teams SIP Gateway to help create better results for business-critical frontline workers.
Story image
Organisations exposing highly sensitive protocols to public internet
More than 60% of organisations expose remote control protocol SSH to the public internet, while 36% of organisations expose the insecure FTP protocol.
Story image
Nozomi Networks adds nine partners to its MSSP program
OT and IoT security company Nozomi Networks has added nine new members to its MSSP Partner Program, and the list includes CyberCX and Deloitte.
Story image
High level of Customer Identity & Access Management adoption
The study from Okta revealed that the pandemic has either accelerated or highlighted the need for digital-first strategies.
Story image
Document Management
TrustRadius gives M-Files two document management awards
TrustRadius has recognised M-Files with both a 2022 Best Feature Set and a 2022 Best Relationship award in document management.
Story image
Ingram Micro
Ingram Micro NZ sees $74 million revenue growth in 2021
Ingram Micro New Zealand's latest financial report reveals that its revenue from contracts with customers increased by almost $74 million in 2021.
Story image
Ministry will no longer accept equipment from Chinese firm Hikvision
The Ministry of Business, Innovation and Employment (MBIE) says it will no longer accept equipment from a major Chinese surveillance camera maker.
Story image
Cloud and data protection big challenges for NZ businesses
"This surge towards a cloud-first approach meant security and safety became afterthoughts - there's no point being the fastest car on the racetrack if you crash.”
Story image
Dark web
Beware the darkverse and its cyber-physical threats
A darkverse of criminality hidden from law enforcement could quickly evolve to fuel a new industry of metaverse-related cybercrime.
Story image
LG Electronics
LG Electronics’ revenue in NZ grows by 57% in FY 2021
The New Zealand branch of LG Electronics Australia's total revenue shot up by nearly NZD $45 million reaching a total of $123.7 million for FY 2021.
Story image
SnapLogic teams up with meetmagic for charity and children
SnapLogic has announced its partnership with meetmagic, an online Australian platform that combines business and philanthropy.
Story image
Web application firewall
Radware recognised in KuppingerCole’s 2022 Leadership Compass report
Radware has been named a Product, Innovation, Market and Overall Leader in the 2022 KuppingerCole Leadership Compass report for Web Application Firewalls.
Story image
Application Performance Monitoring / APM
New Relic integrates offering with Atlassian’s Jira Software
New Relic has integrated errors inbox with Jira Software to allow developers to easily access and set up complete stack error tracking and software performance monitoring from within the tool.
Story image
Home security
Hands-on review: Eufy Wire-Free Dual Cam Video Doorbell 2K
We have had our house secured by Eufy products for over seven months now. We love the brand, and it has never let us down.
Story image
Hands-on review: Arlo Go 2 security camera
In my humble opinion, Arlo Go 2 offers security for anyone needing to keep a remote eye on prized possessions or premises at different locations.
Story image
Keysight Technologies and Nokia’s public test of 800GE success
Keysight and Nokia have successfully demonstrated the first public 800GE test, validating the readiness of next-generation optics for service providers and network operators.
Story image
Artificial Intelligence
Exclusive: NZ-based DEFEND offers global cyber protection
DEFEND supports customers in 66 countries across the globe with a relentless focus on ensuring that every dollar spent on security provides a meaningful return on investment and reduces cyber risk.
Story image
Google Cloud
Google Cloud to open first cloud region in NZ - among others
Google Cloud has announced plans to bring three new cloud regions, one each in New Zealand, Malaysia and Thailand.
Story image
Home Entertainment
Hands-on review: TCL 65″ C835 Mini LED 4K Google TV
We introduce you today to a TV that brings the height of immersion to your viewing experience: The TCL 65″ C835 Mini LED 4K Google TV.
Story image
Attacks on gaming companies more than double over past year
The State of the Internet report shows gaming companies and gamer accounts are at risk, following a surge in web application attacks post pandemic.
Story image
New range of Samsung Smart Watches announced with health focus
Samsung has announced new additions to its SmartWatch portfolio, with the Galaxy Watch5 and Galaxy Watch5 Pro to be released in late August.
Story image
Cyber attacks
Dramatic uptick in threat activity with exploits growing nearly 150%
"While it’s not a surprise given increased attack opportunities like remote work, it’s still a worrying development and one we cannot ignore."
Story image
Workplace design a crucial factor for better employee experience - report
The key to a successful workplace could be its design, according to research from Ecosystm and Neat.
Story image
Why security needs to shape your journey to the cloud
It's estimated that 80% of workloads could be in the cloud in the next few years. How can you make all that data secure?
Story image
New Zealand
2degrees announces appointments to newly established board
2degrees has announced Liz Coutts as the board chair, while Russell Stanners and Kathy Meads join her as directors.
Story image
9 in 10 retailers prepared for economic challenges this year
Some 9 in 10 retailers (86%) are prepared for continued inflation, higher interest rates and potentially lower consumer spending, according to new research.
Story image
Hybrid Cloud
The essential guide to digital transformation by SolarWinds
Digital transformation is a buzzword thrown around all the time by companies, but what does it actually mean and why is it important? SolarWinds breaks it down.
Story image
Privileged Access Management / PAM
The importance of stopping identity sprawl for cybersecurity
The 2021 Data Breach Investigations Report (DBIR) shows that 61% of all breaches involve malicious actors gaining unauthorised, privileged access to data by using a compromised credential. Unfortunately, it is often too late when the misuse of a credential is detected.
Story image
NZ program recovers and recycles more than 177 tonnes of e-waste
The TechCollect NZ pilot program says its milestone of recovering and recycling more than 177 tonnes of ICT e-waste recognises the efforts of many.
Story image
Machine learning
Sysdig releases CDR offering to combat cryptojacking
Sysdig has unveiled a cloud detection and response (CDR) offering powered by machine learning to combat cryptojacking.
Story image
Garmin expands NZ footprint with new Auckland distribution centre
The facility at Goodman’s Highbrook Business Park will be fully operational from October 2022 and features 3,586sqm of warehouse space.
Story image
Snyk announces plans to expand partner network in APJ
Recognising that partnerships are critical for growth, Snyk is building an entire partner ecosystem that will drive its expansion across APJ.