Microsoft taps partners to sell Azure and take on Amazon in cloud
Microsoft has a big channel and soon it will arm them with Azure — Network World - Microsoft distributors will soon be able to resell the company's Azure cloud IaaS, Microsoft announced today in a blog.
Context & Ripple Effects
Microsoft had already assembled a 25-partner Cloud OS Network in 2013 to encourage Windows Azure use. Allowing distributors to resell Azure IaaS turns that partner outreach into a direct route to market through the channel.
The move matters because Azure can be sold alongside the infrastructure and services that distributors already provide, giving Microsoft a broader way to reach business buyers as it competes with Amazon.
First-order effects
- Microsoft distributors gain the ability to resell Azure IaaS, adding cloud capacity to their customer offerings.
- Microsoft gains a channel-led sales path for Azure rather than relying solely on direct cloud sales.
Second-order effects
- Resellers can bundle Azure with their existing implementation and support work, making the channel a more important point of comparison for business cloud buyers.
- Amazon and other IaaS suppliers face greater pressure to ensure their own services are accessible and attractive through distributor-led purchasing relationships.
Third-order effects
- If distributors make cloud capacity a standard part of infrastructure deals, IaaS competition shifts toward control of partner relationships and packaged services rather than standalone cloud pricing alone.
The trend: Enterprise cloud vendors are increasingly using established IT channels to turn infrastructure capacity into a reseller-delivered service.