Lots of working capital key in cloud business

With software-as-a-service looming large with growth opportunities for channel players, at least one industry expert cautions that the price of playing in the new field can be quite steep. It is critically important for businesses make the right move when they transition from a transactional business model to a cloud-based recurring revenue, according to Bruce Stuart, president of channel consultancy Channelcorp. Stuart spoke at a workshop at the recent CDN Top 100 Solution Providers event.

“Moving from left leg legacy to right leg recurring is a very elastic process, and if you don’t have extra capital you need to be pinpoint accurate as you move from left leg to the right leg,” he said. “If you have lots of capital you can shift very quickly.” In this video, Stuart talks about how such an issue eventually led to the demise of cloud storage provider Nirvanex even when the company was offering was offering customers excellent technology. More importantly he provides insights on how to avoid the same fate.

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Jim Love, Chief Content Officer, IT World Canada

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Nestor Arellano
Nestor Arellano
Toronto-based journalist specializing in technology and business news. Blogs and tweets on the latest tech trends and gadgets.

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