The cloud will challenge traditional IT resellers
The direction of cloud computing is towards the commoditization of IT. This will challenge traditional IT resellers. A commodity is defined as a good which is supplied without qualitative differentiation across a market. What this means for sellers is that buyers don’t really care who they buy the commodity from and worse as the market matures:
1.Information Technology becomes cheap
2.Less need for the middleman
3.Less need for services
4.No upfront cash for software purchases
This challenge will pressurise traditional IT resellers without steady recurring revenue.
