We all know Amazon. What was once known as an online bookstore has transformed into an online behemoth of hosted services. What’s interesting about Amazon, like Microsoft and others, is they leverage strategic partnerships to grow their business. Microsoft does this through the partner channel (you, me, and others). Amazon, because they are in several industries, is a bit more unique. I read an article recently on how Amazon is going after consumer products. According to the Wall Street Journal, they established alliances with companies such as Proctor and Gamble to lower shipping costs, establish warehouses, and deliver goods to the end customer more quickly then doing it on their own. What they are doing is setting up shop inside Proctor and Gamble’s warehouses, thus reducing the cost of storing and transporting their goods. This program is called “Vendor Flex.” This is a great way to compete against the Wal-Mart’s of the world. Watch out grocery stores, Amazon is knocking on your customers door! (literally) In the end, Amazon recognizes where it is strong (e commerce) and utilizes partners where it lacks resources.
Microsoft is placing a big bet on hybrid cloud environments (big surprise..right?). They already have strategic partners with AT&T and the like to build out diverse scenarios, but they are also leveraging their biggest licensing program, the Enterprise Agreement (EA) to gain market share. I won’t divulge into the Enterprise Agreement, you can read about it via the Microsoft website, but they are going after this group with a vengeance. They took Office 365 and made it into a billion dollar business by leveraging partnerships and will do the same with Azure. They created incentives for system integrators to deploy it, had resellers promote it, and utilized their own licensing agreements to sell it.
I used to manage Office 365 (at the time BPOS) on the reseller side. I thought this was the perfect program for small companies that do not have the resources to manage an infrastructure. In a way that’s true, but I underestimated how larger companies can leverage hosted solutions. They utilize their existing volume licensing agreement and have certain departments off premise while others on premise. For companies that do not have the resources to configure it, they can use the partner channel to deploy it. Microsoft turned around Office 365, they will do the same with Azure, all the while leveraging their partners.
If players like Microsoft and Amazon have strategic alliances…shouldn’t you? Does your partner offer the resources you need to succeed or are they just less expensive? Do you have a white labeling program or consider white labeling yourself? How are you leveraging SPLA? Have you reached out to your vendors for support? How does your SPLA reseller help? If interested, you should attend the Microsoft Hosting Summit or attend Hosting Con, where resellers and partners connect. Check it out for yourself http://www.hostingcon.com. Reach out to me, I can help too! Maybe in the end I’m right, two heads can be better than one!