This document discusses the impact of cloud computing on traditional channels and solution providers. Key points include: - Forrester and Gartner estimates that cloud transformation will lead to 15-40% attrition of the existing channel. - Conventional business models and customer engagements will become less valuable unless solution providers change their approach. - Survival requires radical changes to business models and go-to-market strategies, which most solution providers are ill-equipped for. - Vendors continuing traditional approaches will struggle, and nimble transformation is needed to succeed in the cloud environment.