What Are the Top 3 Barriers to Selling Cloud?

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There are many reasons to move to the cloud. And for every reason to move, someone brings up a reason not to. Although we can’t address every reason to transition to the cloud or every objection that is raised, we can address the top three barriers that companies are worried about.

But First, a Little Background on Cloud Growth

You have probably seen the cloud market projections. They are aggressive. IDC expects cloud software will surpass $112.8 billion by 2019 at a CAGR (compound annual growth rate) of 18.3%, compared to Gartner’s projected overall growth of 5% for Enterprise IT. Forecasts are so aggressive that IDC even suggests that by 2020 we will no longer be referring to private and public cloud, or possibly even “the cloud,” because it will be the default way business is done and IT is provisioned.

Cloud and IT growth are now being driven, in part, by IoT implementation and adoption, which provides real-time data for everything from geography to digital body language. This mass of data and expectation of always-on access is impacting every aspect of the business world and creating the need for transformative change. Failure to integrate cloud-based services into your business, as well as fostering them within your existing and new clients, will result in an inability to function in, and leverage, the networked world.

Arrow has been helping many partners increase their revenues with cloud services for years now. And along the way, we’ve had to help our customers overcome many of their concerns about cloud. Following are the top three barriers that are keeping customers away from the cloud and how you can address them.

Barrier #1 – I don’t really trust cloud security.

Security is the leading concern raised by companies and government agencies considering transitioning to the cloud. It is also a primary concern for CIOs and IT managers for their own IT assets. Cloud services providers have not missed this and are successfully addressing the concern with the following.

  • Cloud can leverage efficiencies of scale across multiple deployments to provide enterprise-level security and resources to any size company.
  • SaaS CSPs, which have nearly 80% of cloud sales and are expected to reach $132.57 billion in 2020, have developed security protocols that meet the strict industry and government compliance requirements that are in place.
  • Security offerings seamlessly integrate with identity management and SSO (Single Sign-On).
  • Leading CSPs offer inclusive or add-on security solutions for IaaS and PaaS solutions.

If your customer still is not comfortable with the idea of trusting their data to the cloud, suggest a backup service. This is an easy way for them to get their feet wet and develop trust in the technology. It has the added benefit of being easy to demonstrate and prove ROI. Offer your clients a test-drive. You are in the enviable position of being able to provide a total solution, quickly, without having to deal with hardware installation. Your Arrow cloud backup trial can be up and running in just a few hours at virtually no cost to the customer.

With Arrow, your clients benefit from a broad set of best-in-class cloud providers with comprehensive industry compliance certificates and a basic tenet that security comes first. In addition, we will help you to set up a comprehensive security discussion with the target suppliers.

Barrier #2 – We’re too busy to evaluate the trade-offs and benefits.

Your client is obviously not satisfied with their current infrastructure. If they were, you wouldn’t be having this conversation. This is your opportunity to start asking questions and find out what is, and isn’t, working and what the driving force is behind the executives’ interest.

  • You’re part way there since you have executive interest. Now you need to gain their support. Every cloud strategy starts with a business strategy and a risk-benefit analysis. Find out what a corporate initiative or campaign is and align the cloud proposal to it.
  • Share the many benefits around security, cost and leveraging scale.
  • Focus on the ability to re-target IT to higher value strategic initiatives.
  • Lay out the cost-benefit of moving just some of their IT operations to the cloud.
  • Explore how to drive new projects that will enhance value to the organization once their staff is freed up as a result of the migration to cloud.

Leadership is constantly looking at all aspects of the business ranging from delivering service to their constituencies to monitoring the gross margin. They continually look for ways to get more done with less. Arrow removes many of those headaches for them, aggregating multiple cloud services into one location, simplifying billing and assisting with implementation.

Barrier #3  I don’t think I have money for cloud.

Many IT organizations don’t realize how much money they are currently spending on their infrastructure and labor. And they really aren’t familiar with the savings they could be realizing by moving to the cloud.

  • Reducing IT asset ownership results in the company becoming more agile and strategic, enabling business-growing and revenue-enhancing projects.
  • The customer gets a managed service (eliminating on-site staff maintenance) that is fully integrated and scalable with up-to-date software and hardware; they only pay for what they use.
  • Cloud vendors also offer service level agreements that include performance guarantees.
  • Often enhanced disaster recovery-as-a-service capabilities are included with the SLA that can enhance your client’s disaster recovery and/or business continuity at a lower cost than they could achieve were they to implement these capabilities themselves.

CIOs are looking for ways to enhance shareholder value and are increasingly working closely with heads of business units to become champions of IT change. If your client wants to build applications to support current technology, such as IoT or big data, cloud platforms are the only way to go. They are quick to bring to production, they are cost-effective and, best of all, Arrow can help you with all the software, infrastructure and professional services that are required.

Let Arrow Help

Arrow can assist in every step of the discovery and delivery process. Our cloud strategy consultants can help you build the business case to support an investment decision. Cloud assessments will build the tactical steps to identify the right workloads and applications to move to or build in the cloud, as well as plan how to smoothly make the migrations. Our solutions architects help you identify the right choices to meet the reliability, control, performance and transferability requirements demanded by your clients. And finally, our channel partner ecosystem includes experts who can work with you as a partner every step of the way.

Contact Us

If you would like more information about how to begin selling cloud services, contact us at 877.558.6677 or send an email to ecscloudservices@arrow.com.

Last modified: May 3, 2019