Cloud has become a cornerstone of many businesses, but there is still a largely untapped market out there that channel partners should be targeting.
This article first appeared in News in the Channel magazine issue#30, and the views are attributed to Aaron Rees, SVP AWS Business at Westcon-Comstor and CEO, Rebura (a Westcon-Comstor company).
In just a few years, cloud has matured from a disruptive force to a cornerstone of the business and technology landscape. With the incredible rise, influence and reach of the hyperscalers, it can sometimes feel to those of us working in the space that cloud has become omnipresent.
It’s worth reminding ourselves then, that for cloud service providers, specialist cloud consultancies and channel partners, there is still a huge untapped market out there.
As Amazon CEO and former AWS leader Andy Jassy pointed out last year: “85% or more of global IT spend remains on-premises.”
In the same earnings call with investors, Jassy said that AWS’ generative AI strategy is encouraging more companies to ditch their on-premises IT environments in favour of the cloud, creating huge growth opportunities for AWS and the wider AWS ecosystem.
According to one estimate, the global cloud market is projected to grow from $676.29 billion in 2024 to $2,291.59 billion by 2032, with a CAGR of 16.5%.
Meanwhile Canalys has forecast that global cloud infrastructure services spending will grow 19% in 2025, as hyperscalers expand investments in cloud and AI infrastructure to keep pace with rising demand.
Barriers to partner success
So how well placed is the channel when it comes to capitalising on these opportunities?
That’s the subject of Westcon-Comstor’s new Mastering the Maze report, which surveyed nearly 900 resellers, MSPs and system integrators across the UK and seven other countries. The research lifts the lid on the obstacles facing partners as they look to secure a piece of the cloud prize. It suggests that while the channel is gearing up for cloud growth, many partners are wrestling with a series of practical, technical and operational challenges.
Supply and demand
Chief among these is a lack of technical cloud skills within partners’ own businesses. Indeed, 44% of UK-based partners cited skill shortages as a barrier to meeting their customers’ cloud requirements.
Set against the fact that 77% of UK respondents said their customers are looking for specialised cloud skills, it’s clear there is a gap. End users are seeking external cloud expertise, but partners are struggling to meet demand. Closing this gap through upskilling is vital if the channel is to play a significant role in the next phase of the cloud revolution.
As one partner interviewed for the research put it: “What customers value most in cloud services are skill capabilities. This gives them the confidence to focus on their business goals.”
Developing and deploying these skills and capabilities could be the key to partner success in cloud in the coming years.
FinOps frustration
Leveraging cloud provider programmes to full effect is another major challenge for partners, with 56% of UK respondents highlighting this as one of the biggest barriers they face when advising their customers on cloud cost optimisation.
Meanwhile 63% of partners in the UK admitted that they struggle to fully understand cloud pricing, with the complex nature of models making it hard to give customers certainty over costs.
Richard Beeston, CTO at Digital Space, told us: “In some respects, the challenge is getting customers to see the value of investing in cost-saving measures. In others, it’s getting the right people within the customer base to say yes – particularly if they’re concerned about exposing inefficiencies.”
State of security
More than one in three partners admitted difficulties meeting customers’ cloud security needs – a striking finding given that cloud security is a huge concern for customers. In fact, 74% of partners in the UK flagged cloud security when asked which factors their customers prioritise when choosing a cloud partner – the second highest proportion of all the countries surveyed.
Given the high stakes and the reputational, operational and financial impact of a breach, it’s understandable that cloud security is top of mind for end users. Again, what’s concerning from a partner perspective is the disconnect between customer needs and the channel’s ability to meet them.
Now for the good news
More positively, the UK channel stands ahead of other countries in its determination to grasp the cloud opportunity. We found that 93% of UK-based partners see developing their cloud capabilities as a priority. That’s higher than any other country and is set against an international average of 85%.
Meanwhile, an above average 42% of UK partners say they’re experiencing pressure to outperform rivals by delivering better, faster solutions. That reflects the healthy, vibrant, competitive market that exists here. Given the intention to build out cloud offerings and take on the competition, there is compelling evidence to suggest that partners in the UK are better placed than most to achieve cloud success.
Mastering the maze
Cloud has changed the way businesses of all sizes operate, promising limitless potential for growth, innovation and agility. With this promise comes complexity and customers are looking to partners to help them overcome it.That’s why partners’ roles are more critical than ever. End users are depending on them to be trusted advisors, bringing the tools and specialised knowledge to succeed in cloud, safely and cost-effectively.
But the channel has some way to go on its journey to fulfilling this role, with many partners still honing their own skills and expertise. It really is a case of mastering the maze, hence the title of our report.
Partners that make a strategic decision to develop their capabilities and become genuine experts in cloud will reap the rewards. By mastering the cloud maze, they can solidify and deepen customer relationships, accelerate growth and create a future-ready business that will thrive in the gen-AI era. I’d argue that’s a prize worth fighting for.
