Cloud Solutions: What’s the Impact to Partners?

During Microsoft CEO Satya Nadella’s keynote on July 11 at the Worldwide Partner Conference, he addressed the three pillars of the company’s digital transformation mission. One of them was building the intelligent cloud platform. But how are cloud solutions shaping Nintex partners?

The progress made with Office 365 is “tremendous” and the move to the cloud is “transformative,” with usage growing every day. And this cloud transformation centers around the transformation of data.

“It’s not just a new way of delivering the software as a service but it’s fundamentally changing the value we deliver,” Satya said. “The fact you move to the cloud means for every customer the rich information model of people, their relationship with other people, their calendars, their projects, their work artifacts are all exposed as a rich graph structure. And of course, we reason on that data to create new products.

“It’s not just limited to the opportunities we create,” he said. “The opportunity every one of you has to extend the Microsoft graph, all of the tenant information that is there to add value to each customer I think represents a huge new opportunity for us.”

The Nintex team was among those listening to that keynote. Cloud transformation shapes our product roadmap. Read You, Zoe and the Nintex Workflow Cloud for more information about one way we’re doing that.

Another way cloud transformation shapes how Nintex operates is by making us very interested by – and invested in – how cloud transformation impacts our partners. For the past three quarters, we’ve surveyed partners on a variety of channel trends, including growth in cloud solutions.

Here are some details about why we regularly survey partners and industry leaders, and results from our most recent survey.

Why Did We Conduct This Survey?

Nintex has conducted three surveys with more than 250 leaders from our channel organizations in both the U.S. and Australia to investigate the changing customer landscape for line-of-business (LOB) leaders and IT departments.

Between late 2015 through mid-2016, we commissioned Research Now to survey leaders in sales, IT, HR, marketing and operations as well as senior managers. We also interviewed Nintex Premier partners.

Our latest survey in May 2016 involved more than 150 leaders from channel organizations in the United States.

We wanted to learn a few things:

  • How have their business models, processes and procedures evolved amid digital transformation?
  • What’s vital in order to stay competitive in an ever-changing landscape?
  • How has the cloud impacted their business?
  • What’s been their experience moving clients to the cloud, security concerns over data and how any of that has affected their bottom line?
  • What have been their efforts and experiences in implementing Nintex across multiple teams within their customers’ companies?

What Do Partners  Say About Cloud Solutions?

Now that you have a better idea of our motivation for surveying partners, here are a few of the biggest cloud-related findings from our most recent channel partner survey.

  • Everyone isn’t in the cloud:

Many partners still rely on on-premises solutions for a significant portion of our business. For 90% of our survey respondents, selling and servicing cloud solutions represented less than half of their business in the last year. Just 9.4% said cloud solutions amounted to more than 50% of their business.

“The survey underscores the continued viability of the traditional on-premises solution while highlighting the future profitability of recurring revenue from managed cloud services,” said Josh Waldo, Nintex VP of channels and product marketing.

  • The tipping point may be ahead:

Cloud solutions are changing how businesses operate today and partners see growth in the future. More than half of our Australian and New Zealand partners estimate that at least 50% of their business over the next two years will be related to the cloud (up from about 30% in 2015).

“The cloud is fantastic and we all love it, but when I talk to clients…it’s just a thing. What I’m finding with cloud: some customers get it, they’re all over the cloud and doing lots of cool stuff,” said Ian Oliver of Provoke. “But we haven’t reached the tipping point – at least not in New Zealand – where it’s setting the world on fire. …The last 12 months have seen a massive change since the previous 12. But we’re not quite there yet.”

  • Partners see big advantages of cloud:

Thirty-four percent of partners say the sales cycle is shorter with cloud solutions than with on-premises solutions. And 48.4 percent say revenue is more predictable with cloud and managed services solutions vs. on-premises solutions.

Because of the cloud, “we don’t need clients to invest that money in invisible infrastructure, and instead that spend is diverted into innovating, providing tighter integrations to businesses’ usual systems in their intranet,” said David Bowman of Content and Code. “So, it’s been a positive evolution for us and our clients.”

 

Read the results of the most recent survey and download our free eBook “Partner with Nintex: The path to profitability.”

Cloud solutions were one of the topics we explored with the Q4 channel survey.

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