Almost half of UK channel partners are facing a meaningful obstacle in their cloud ambitions: a lack of technical skills. According to new research from westcon-Comstor, 44% of these partners feel ill-equipped to successfully develop their cloud capabilities. The findings come from Westcon-Comstor’s latest ‘Mastering the Maze’ report, which surveyed nearly 900 partners across eight countries between Oct. 28 and Dec. 11, 2024. This skills shortage is emerging as a critical challenge as businesses increasingly demand cloud expertise.

The comprehensive report sheds light on the specific areas where UK channel partners are struggling and the broader implications for the cloud market. The survey included partners from Australia, France, Germany, Indonesia, New Zealand, Singapore, South Africa, and the UK, providing a broad view of the challenges and opportunities in the cloud sector.

demand for Cloud Expertise Outstrips Capabilities

The ‘Mastering the Maze’ report highlights a clear disconnect between the demand for cloud services and the ability of UK channel partners to deliver them. A staggering 93% of UK-based participants view developing a cloud practice as a priority for their business, significantly higher than the international average of 85%. This urgency is fueled by customer demand, with 77% of partners reporting that their clients desire specialist cloud skills.

Though, only 56% of respondents expressed confidence in their ability to fulfill this demand, leaving a significant 44% citing skills shortages as a major obstacle. This gap underscores the pressing need for channel partners to address their technical deficiencies to remain competitive in the evolving cloud landscape. The report suggests that without addressing this skills gap, UK channel partners risk losing market share to more agile and skilled competitors.

Technical Skills and FinOps Expertise: Key Areas of Concern

The Westcon-Comstor report pinpoints technical skills and FinOps expertise as the primary areas where UK channel partners are struggling. This includes not only the technical know-how to implement and manage cloud solutions but also the financial acumen to optimize cloud spending. FinOps, or Cloud Financial Operations, is a growing discipline focused on helping organizations understand and manage their cloud costs effectively.

The challenges extend beyond simply acquiring knowledge; they also encompass the associated hiring and talent acquisition difficulties. Finding and retaining skilled cloud professionals is proving to be a significant challenge for many UK channel partners, further exacerbating the skills gap. The competition for cloud talent is fierce,with companies worldwide vying for the same limited pool of skilled professionals.

“Our research shows that the channel is poised to grasp the huge growth opportunities presented by the cloud market, but is facing certain gaps around skills, capabilities and expertise.”

David Grant, CEO at Westcon-Comstor

Grant further elaborated on the varying stages of cloud adoption among partners, stating, “Partners around the world are at different stages of their cloud journey, but there is a common thread in their desire to expand their cloud capabilities and meet their customers’ needs.” This highlights the need for tailored support and training programs that cater to the specific needs of partners at different stages of their cloud journey.

Challenges in Cloud Cost Optimization

Beyond technical skills, UK channel partners are also grappling with the complexities of cloud cost optimization. More than half (56%) of UK channel partners identified leveraging cloud provider programs to their full effect as a key concern when advising customers on managing cloud costs. Moreover, almost two-thirds (63%) highlighted issues related to understanding cloud pricing models and their inherent complexity.

This concern over cloud pricing is not unique to the IT channel. Enterprises across various industries have also faced challenges with surging cloud costs in recent years. The ability to accurately forecast spending and manage cloud budgets is becoming increasingly critical for businesses of all sizes.Many organizations are turning to specialized FinOps tools and services to help them gain better visibility into their cloud spending and identify opportunities for cost savings.

The report also revealed that 42% of respondents cited pressure to deliver better solutions than their market rivals as a key issue, highlighting the competitive landscape in the cloud services market. This competitive pressure is driving channel partners to seek out innovative solutions and services that can differentiate them from their competitors.

A Global Perspective

The desire to capitalize on cloud market opportunities is a consistent trend across various regions. The ‘mastering the Maze’ report encompassed businesses in Australia, France, Germany, indonesia, New Zealand, Singapore, South Africa, and the UK, providing a comprehensive global perspective.

Notably, concern over technical skills was moast pronounced in New Zealand, with 49% of participants citing it as a challenge. In contrast, partners in France expressed the highest level of confidence in their cloud capabilities. This regional variation highlights the importance of understanding the specific challenges and opportunities in each market.

Across all markets surveyed, 25% of participants identified themselves as ‘born in the cloud,’ while 23% indicated they were shifting their focus from on-premises solutions to developing a cloud practice. This transition reflects the growing recognition of the cloud’s importance in modern IT strategies. The shift to cloud-based solutions is being driven by factors such as increased agility, scalability, and cost savings.

The report also highlighted that 50% of customers are now opting for hybrid solutions, while 27% are pursuing full migration, albeit with a cautious approach. To effectively cater to these evolving customer needs, nearly half (46%) of the respondents emphasized training and enablement as areas where distributors can provide valuable support in developing their cloud capabilities. This underscores the critical role that distributors play in helping channel partners navigate the complexities of the cloud market.

“It is incumbent on distributors to support, enable, and empower partners in pursuit of these aims by harnessing and deploying their own cloud expertise,”

David Grant, CEO at Westcon-Comstor

The data further revealed that 75% of global partners view cloud hyperscaler marketplaces as an possibility rather than a threat and are actively utilizing them. These marketplaces provide a convenient way for partners to access a wide range of cloud services and solutions.

The cloud can act as a “springboard for innovation, growth, and productivity gains” for both partners and customers alike.

aaron Rees, founder and CEO at Rebura, a Westcon-Comstor company

However, Rees cautioned that “The channel, however, still has some way to go on its journey to mastering the cloud, with many partners still developing their own skills as they work to satisfy customer expectations.” This highlights the ongoing need for continuous learning and development in the cloud sector.

he concluded, “Our findings suggest that partners know where they need to develop their cloud capabilities – the challenge is finding the right support to help plug those gaps.” This emphasizes the importance of identifying specific skills gaps and seeking out targeted training and support programs.

Conclusion: Bridging the Skills Gap is Crucial

The Westcon-Comstor

UK Cloud Skills Gap: Are Channel Partners Ready for the Future?

Is the UK cloud market booming, or is it facing a critical skills shortage that coudl stifle growth?

the UK cloud market is experiencing explosive growth, but a significant skills gap threatens to hinder progress. The demand for cloud services is far outpacing the availability of skilled professionals within the channel partner ecosystem. This isn’t simply a matter of having enough personnel – it represents a basic gap in expertise, particularly in areas like cloud security, financial management (FinOps), and the nuanced technical abilities needed to navigate and optimize diverse cloud environments. This critical shortage is impacting the ability of UK businesses to effectively leverage the full potential of cloud computing.

What are the most pressing technical skills shortages facing UK channel partners?

The most pressing skill shortages affect a range of critical areas. First, core cloud infrastructure management and deployment: Expertise in platforms like AWS, Azure, and GCP is essential, yet many partners lack the depth of knowledge to design, implement, and maintain robust, secure cloud systems. Next, cloud security is paramount, given the heightened risks associated with cloud-based environments. robust security expertise and a deep understanding of compliance regulations is urgently needed. Moreover, FinOps, or cloud financial management, is crucial. This includes efficient cost estimation, billing optimization, and the ability to align cloud spending with business objectives.Without a solid grasp of FinOps, cloud projects can easily exceed budgets and fail to deliver returns on investment as intended. the ability to provide extensive cloud migration strategies and effectively manage the transition for clients is another area where skills are lacking.

How are these shortcomings impacting UK businesses’ ability to adopt cloud solutions effectively?

These skills gaps directly impact several aspects of cloud adoption.Firstly, project delays and cost overruns are commonplace when channel partners lack the necessary experience. This slows down digital conversion initiatives across numerous organisations within the UK.Secondly, security vulnerabilities increase, creating a risk of data breaches or compliance issues if cloud deployments are not properly secured. Businesses choose an experienced and learned channel partner for a risk-free experience but may find themselves at a disadvantage if their partner lacks adequate knowledge. inadequate cost management can lead to significant financial losses. Unplanned expenses and inefficient resource allocation can undermine business cases and frustrate stakeholders’ expectations.

What steps can UK channel partners take to address these skills gaps?

Partners have several options to address these challenges. Investing in training and certifications specific to cloud technologies like AWS, Azure, and GCP is critical. continuous professional development (CPD) is crucial to remain up-to-date with the ever-evolving realities of the cloud environment. Additionally, strategic partnerships with cloud experts and other firms can provide immediate access to specialized knowledge and resources. This might involve collaborating on projects, sharing best practices, or even outsourcing specific aspects of cloud services. actively recruiting and retaining skilled cloud professionals is essential. This includes offering competitive salaries, benefits, and opportunities for career growth within a rapidly developing field.

What role can distributors play in helping channel partners improve their skills?

Distributors play a vital role bridging this gap. They can offer valuable training and enablement programs tailored to the specific needs of channel partners. By offering both certification preparation and practical hands-on learning opportunities,distributors can upskill their partner network. They can also facilitate partnerships with cloud providers and technology vendors, providing valuable insights and support. Furthermore, distributors can develop marketing and sales resources to help partners effectively position their cloud services and attract new clients, thus fostering their growth within the industry and building confidence.

What advice would you give to a UK business looking to select a cloud solution provider?

Businesses should carefully vet prospective partners by evaluating their specific cloud expertise in the relevant platforms. Request detailed case studies showcasing their experience in similar projects or within related industries. Inquire about their security practices and compliance certifications. Also, discuss their approach to cloud cost management and financial planning. Choosing a partner with a proven track record and a demonstrated understanding of FinOps is paramount to ensure triumphant and cost-effective cloud adoption.

closing the cloud skills gap is crucial for the continued growth of the UK cloud market. What are the most significant takeaways for our readers?

The demand for cloud expertise considerably exceeds the supply: proactive steps to address this gap is essential for UK businesses to thrive.

Technical skills, cloud security, and FinOps expertise are all critical: companies must prioritise training and seek collaborative partnerships to achieve competence.

Distributors and cloud providers have a crucial role to play in supporting channel partners: businesses considering cloud adoption should carefully evaluate providers’ experience and capabilities.

A well-rounded approach encompassing training, partnerships, and talent acquisition is needed: this will strengthen the UK’s cloud industry resilience.

We encourage readers to share their thoughts and experiences in the comments below. What are some of the challenges you’ve faced, and what strategies have proved most effective in overcoming them?