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Top Cloud Reseller Challenges Hampering Growth
1. Delays in provisioning cloud services
When customers order a cloud service or product, they expect all the resources and services to be allocated to them in no time. Once an order is received, the resellers work on provisioning the ordered solution from the cloud provider to the customer. The process takes quite some time.
However, if there are numerous orders in a day, the provisioning gets delayed for most of the customers. It is certainly not good for customer experience. Moreover, provisioning the services one by one takes a significant amount of time for the reseller and impacts the team's productivity. This is one of the biggest challenges for cloud resellers today.
2. Complex billing
One of the perks of choosing cloud services for businesses is that the billing cycles are flexible. Customers can go with pay-per-use, monthly or annual subscription, on-demand payment options, etc.
Cloud billing is quite complicated. It is not simple like a buy-sell or fixed pricing business model. Some customers might go with the monthly subscription, while others may go with a pay-per-use or annual subscription. Managing the billing of varied terms for multiple customers is one of the biggest challenges for cloud resellers today.

3. Manual management
Cloud computing resellers spend most of their time managing the provisioning, billing, and relationships with customers. The reseller businesses often feel like they are just doing push and pull between the cloud provider/distributor and the customer.
These manual tasks are time-consuming and involve operational costs. Sometimes, many resellers feel that the profits and commissions are not worth it. They find it difficult to onboard more customers and manage them, which impacts their ability to scale up at a fast pace in the market.
4. High overhead costs
To sell the cloud services and manage the customers, a reseller needs infrastructure, different teams for development, support, and marketing, as well as specific tools for taxation, payment gateways, etc. All the aspects involve operational costs.
The more the number of customers, the higher the number of teams required to manage them. These operational costs reduce the margins earned from reselling cloud solutions.
That is the main reason most of the resellers avoid forming partnerships with multiple distributors and cloud providers. It not only becomes hectic for them to manage, but also increases the costs.
5. Sour customer relationships
Customers require great support from the cloud computing reseller, especially when they are new to cloud adoption. From onboarding to setup and installation, there is a significant role of the reseller.
In case there are further issues or queries, the customer seeks the support team. Responding to the customers on time and resolving their issues is the key to customer success. However, this is yet another challenge for resellers. The limited number of staff can't solve all the queries in the expected time, which makes the relationship between customer and reseller sour.

6. Inability to sell multi-cloud
According to Gartner's survey of cloud users, over 80% of the customers today prefer a multi-cloud strategy. They are working with at least two cloud providers.
This shows the clear dominance of multi-cloud. For cloud resellers, it means that they should be able to sell multiple cloud solutions to meet the expectations & requirements of the customers.
However, managing partnerships with multiple cloud providers & distributors is not that easy. Resellers are already stuck with managing the subscription and billing, as well as customer support. Adding a new cloud player to the portfolio means an additional burden of management. As a result, many valuable opportunities are lost.
MUST READ- 6 Impactful Ways to Scale Up Your Cloud Reseller Business
How to Tackle Cloud Reselling Challenges?
All the above-mentioned challenges for cloud resellers can be addressed with a subscription billing and marketplace management platform.
The cloud industry lacked an automation platform that makes subscription and billing management effortless. Keeping that in mind, a new platform named Xtributor has been introduced, which solely focuses on tackling all the cloud reselling challenges.
Xtributor is the industry's first subscription billing software for cloud resellers that easily connects APIs from multiple distributors, fetches the products with price books directly to the marketplace, and automates the instant provisioning & billing of cloud services to customers.
If you are a cloud reseller, you can sell solutions from multiple distributors without worrying about the management. Xtributor has all the essential integrations that you will ever need in running a cloud business, from popular payment gateways and taxation tools to accounting software.
Regardless of the billing terms chosen by the customer, the platform will automatically manage everything, including invoicing and taxation.

Wrapping Up: Get Rid of Major Cloud Reseller Challenges!
So, these were some of the top challenges faced by cloud resellers around the world that hamper their profit margins and ability to scale up the business. With subscription billing and marketplace management software, all these challenges can be addressed easily. When the pain points are tackled, the resellers can focus on what matters the most: business growth.
For any queries or to try Xtributor for free, connect with us today!
Eliminate Billing Complexity and Streamline Subscription Management!
Xtributor is a state-of-the-art cloud billing software for Microsoft CSPs to maximize revenue and boost profit margins.