Why Focus on Virtualization in 2014 for Channel Partners?
Sunday, February 9, 2014, 10:32 AM
With ever evolving market conditions, technology needs of Indian Enterprise and corporate segment has been growing exponentially over last decade. In order to achieve balance between growing business needs and IT expenses Indian CTOs, CIOs and IT Heads took a smarter technology approach which is Virtualization. Decade back we started talking about Server virtualization and within a short span virtualization became a buzz word in technology space. Today almost every component of technology is getting virtualized; may it be hardware, network, application, OS, Data, Storage or probably any other thing that you can think of in technology. Almost everything is getting virtualized. Today virtualization is undoubtedly the biggest business opportunity in Indian environment.
With the evolution in Virtualization techniques, cost of virtualization is expected to reduce in near future. This is expected to increase viability of projects and more rampant implementations across industry segments.
Studies show that Desktop Virtualization can reduce TCO of IT Infrastructure by 40%. Smarter implementation using various technology options can reduce it even up to 60%. In adverse market conditions with ever reducing IT budgets CIOs and CTOs in India are looking at virtualization as the only and perfect solution for their current challenges. Acceptance to VDI technology in India has been higher compare to global standards also cause of conservative but foresighted nature of Indian business houses. Indian Enterprises could foresee business benefits of virtualization very early and hence acceptance to technology has been much faster.
There has been few initial failures couple of years back cause of lack of awareness, expertise, and comprehensive solutions; but now India is fully geared up with right set of technology solutions and skill sets for a great augmentation ofvirtualization in 2014.
This technology shift from physical to virtual environment demands lot of domain expertise which opens new source of opportunities for channel community in India. The large National System Integrators in country like Wipro, HCL, IBM, Data Dimension, etc. has been working on building skill sets for virtualization over last few years. But that is not enough for a large country like India. Gone are the days of high volume hardware business. With growing competition even operating margins for channel partners in traditional licensing business has also been shrinking drastically over last few years. In these challenging circumstances, it is important that regional System Integrators and large Resellers also need to prepare themselves to adapt to changing market needs. Virtualization is as on date a highly complex domain and it requires skilled resources for successful implementation. Therefore in case SI carries expertise in this domain then market is wide open. If focused on virtualization, partners can enjoy higher margins in product business as well as earn sizable services revenue which can increase their bottom lines exponentially. Right from project planning, solution designing, hardware sizing, project implementation, roll out and administration every stage requires skilled resources.
Those channel partners who had been traditionally involved in server, storage and networking business over the years; for them getting into virtualization is not really a difficult task. Rather, it’s just another domain which they can easily master themselves in. Cause successful virtualization requires expertise and knowledge of all these domains. Therefore for all these SI and Resellers, Virtualization is a next big business opportunity.
As on date virtualization is been practiced or implemented majorly in large enterprise and corporate sectors in India. In 2014, we are expecting Indian SME’s to take virtualization path in order to reduce their cost of IT and maintain or increase business profitability during these volatile and highly competitive market circumstances.
In 2014, Large Enterprises and corporate are expected to implement and roll out highly complex Desktop Virtualization and Storage Virtualization kind of projects; whereas SME’s are expected to provide large number of Server Virtualization and Application Virtualization opportunities. There is one more market area which is expected to contribute to virtualization business growth in India that is; new enterprise set ups. In 2014, we will observe that organizations which are setting up new businesses or infrastructures shall adapt and implement virtualization set ups from initial stage rather than going for traditional IT set ups. India has 48.8 million SMEs spread across country and with government initiatives and increasing numbers of SEZs and Industrial units; these numbers are expected to grow more than 5% in 2014. Channel partners can find sizable numbers of virtualization opportunities out of these as well.
Over all, Virtualization is need of hour for both enterprises as well as channel community in 2014. Both have to gear up themselves for this revolution in technology. For channel community it is more important cause if not, they can be left behind or can even be eliminated in this competitive and evolving market. So; take a step forward and say yes to virtualization business.