Enterprise computing has traditionally seen customers buying their own equipment and integrating the systems themselves. With the software as a service model becoming the new industry standard, channel partners accustomed to reselling and distributing equipment, virtual or otherwise, are getting caught flat-footed shifting toward a services approach.

“The channel’s stuck in between here, trying to be the good guys still trying to integrate that stuff, still trying to produce those solutions, but only getting paid at an annuity revenue model. It’s very different,” said Keith Humphreys (pictured), managing consultant at euroLAN Research, an industry analyst firm focused on European channels.

Humphreys spoke with host Stu Miniman (@stu) on theCUBE, SiliconANGLE Media’s mobile livestreaming studio, at the Nutanix .NEXT event in Nice, France. They discussed the changing landscape for channel partners in the enterprise computing industry. (* Disclosure below.)

Changing landscapes

Channel partners for computing infrastructure have historically played the part of distributors, reselling individual computing appliances or boxes for companies like Nutanix Inc., a cloud-computing software company. As these companies move to purely software or service-based business models, channel partners are having to change their business model from unit sales to more of a service-based scheme, according to Humphreys.

“Nutanix are moving in the other direction, going to software only from the box. That’s fascinating, but they’re trying to drag that channel with them,” Humphreys said.

The trend toward services-oriented channel partners is spreading across the industry as more companies move toward software-based business models. Even the large public cloud players are starting to lean on channel partners, not as distribution, but for professional services and consulting, Humphreys added.

“We’re seeing Amazon with AWS starting to reach out to the channel at long last, with channel programs, channel recruitment. They’re not going to get rich reselling, but they’ll get rich by putting the professional services on there,” Humphreys concluded.

Watch the complete video interview below, and be sure to check out more of SiliconANGLE’s and theCUBE’s coverage of Nutanix .NEXT EU. (* Disclosure: TheCUBE is a paid media partner for the Nutanix .NEXT EU event. Neither Nutanix Inc., the event sponsor, nor other sponsors have editorial control over content on theCUBE or SiliconANGLE.)

Photo: SiliconANGLE