Cloud growth will shake-up the UK software channel


Cloud growth will shake-up the UK software channel

Simon Quicke

Resellers dragging their heels on moving to the cloud have been given another warning that the market is fundamentally changing and they face being left behind if they stick with traditional product delivery models.

Research from TechMarketView predicts that by the end of the decade the cloud market will be worth 30% of the UK software market and the traditional shrink-wrapped share of sales will start to decline from its current static position.

The implications for both resellers and vendors of the growth of the cloud are going to be significant and the analyst house has mapped out various ways the supply chain mechanics and relationships will have to change in the next few years.

Firstly, the days of Wintel desktops can no longer be taken for granted and this means that resellers will have to widen their product portfolios and look to form different supplier alliances.

Secondly, the cloud will potentially make anyone in the channel a service provider and it will take some time for the position of vendors, distributors and resellers to settle down.

Finally, as the cloud kicks in those relying on the traditional model will face serious challenges to their business which will become ever more acute as the long-term impact of a hosted model takes its toll on the market.

"The market for cloud-ralated software and services, including software as a service, will grow significantly - in stark contrast to the non-cloud market, which will decline," the TechMarketView report on the UK cloud software market stated.

"Indeed cloud solutions fits in well with delivering 'more for less', so the total software market will actually start to shrink in about 10 years' time despite the positive effects of movement to the cloud," it added. 
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