The mass migration to cloud computing that began during the pandemic hasn't slowed down — indeed, according to the resellers and implementers of accounting technology on our 2023 VAR 100 list, it may even be accelerating, with demand growing fast. However, businesses aren't making these moves for their own sake, but rather because it enables them to face specific challenges and capitalize on opportunities in ways that on-premises computing cannot.
For example, Terri Andrews, national ESG communications leader of Top 10 Firm RSM, said that while some clients have mandated a return to the office, many more are still operating in either a hybrid or remote model. The tools needed to support such models, such as communication, collaboration and document-sharing software, are most commonly cloud-based, and so require an investment in cloud infrastructure to deploy effectively.
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"Some of the employee mobility and remote-work impacts of COVID have become a permanent part of our clients' operations. This has increased their need for communication and collaboration tools and for cloud-based business applications," said Andrews.
Similarly, many organizations are intrigued by the rise of artificial intelligence, especially cloud-based models like ChatGPT. While not everyone is 100% sure what it means for them and how they can work it into their own operations, the VAR 100 reported a great deal of interest in the topic among their clients, and an eagerness to explore possible applications. (See
"AI is going to make a significant impact on our customers and society. We are working closely with our customers to learn how to leverage these new tools best to help drive customer service and improved margins," said Tom Doran, chief marketing officer for Innovia Consulting.
Danielle Parks, director of product marketing with Enavate, noted that generative AI in particular — defined as AI that can generate outputs based on a training data set — represents a major opportunity for both the consulting company and its clients. With this in mind, Enavate has formed a dedicated team devoted to exploring the opportunities and risks that these technologies represent.
"ChatGPT has taken the world by storm in a very short time. In our industry, partners need to look at how they can be leveraging ChatGPT, AI, Microsoft Co-Pilot and other ground-breaking technologies to help clients automate their business processes. Enavate has a team dedicated to evaluating these technologies and looking at how we leverage them in the near term and the future," she said.
Even when clients are already implementing cloud computing solutions, VARs are reporting an eagerness to expand off-site presence on the part of clients. Having experienced success before, some clients want to move even more operations to the cloud to realize additional efficiencies, according to Sabrina Zimara, director of demand generation at Velosio.
"Cloud technology has become more versatile, so clients are looking to extend their applications into more parts of their business. It is no longer ERP or CRM, but business operations, sales and client experience that they're driving across the Azure platform," she said.
External issues
All these cloud investments, given their remote nature, have also necessitated further attention to cybersecurity, according to Thomas Falteich, a partner with Clients First Business Solutions. This is especially true in light of the rising numbers of cyber attacks and scams that are increasingly targeting businesses. Falteich said this was why his own company this year has worked to create specialized cybersecurity offerings.
"Cybersecurity and threat protection [are major trends]. We have completed building out a fully functional MSP offering covering our on-premise, hybrid and full cloud clients. We now offer complete 24/7 SOC, end-point detection and monitoring, virus remediation, and our newest service is penetration testing and compliance," he said.
Many businesses are also struggling against macroeconomic challenges like high inflation or supply chain disruptions. Seeking to harden their operations against such headwinds, the 2023 VAR 100 report that there is a growing urgency to increase efficiency and do more with less, especially when factoring in the ongoing talent shortage that was a problem even before the pandemic. Seeking to become leaner, meaner organizations in the face of economic pressure, companies have embraced automation in particular to soup up their operations, according to Nicole Brinson, senior marketing manager for LBMC Technology Solutions.
"In addition to investments in more agile and accessible business applications like ERP and network infrastructure, automation is at the forefront of every business leader's mind. Where talent and resources are extremely limited, technology and automation can fill in the gaps, streamline processes, remove redundant work and enable employees to focus on more meaningful tasks that accelerate the business," she said.
Rebecca Eason, marketing content specialist with Cargas, pointed out that these economic issues also affect how they need to relate to their clients. In the face of an increasingly difficult business environment, she noted that many customers understand the need to tech up, but are oftentimes concerned about the transition costs. Consequently, they have needed more guidance and reassurance, bringing the relationship-centered aspects of the business to the fore. Cargas has consequently devoted more time to communication and outreach with stakeholders this year.
"With economic concerns taking center stage, Cargas has noticed customers with interesting dilemmas. Customers want to switch off legacy solutions and invest in new software, but the time and monetary costs associated with this switch can add undue stress. Customers increasingly require even more compassion and patience, particularly during longer sales cycles, to ensure they are making a decision that they will be happy with for years to come. While customer needs have not necessarily changed, the way customers approach the decision-making process has gained a few extra steps," she said.
