Cloud computing is greatly reducing the CAPEX budgets and providing an opportunity for MSPs to help their Small Business Customers access more technology than ever before...
The transition is happening at a rapid pace with SMBs heavily investing in both cloud technology in and VARs and MSPs are already benefitting in several ways. According to a report from Toron AMI Partners, US SMBs with fewer than 1,000 employees invested $34 billion in cloud services (including IaaS, SaaS, web hosting, UC and remotely managed IT services) in 2011, with almost half that investment (46 percent) going toward traditional hosting companies.
The two areas of most interest to SMBs and their Managed Service Providers (MSPs) are hosted infrastructure, such as cloud servers and cloud storage, and remote management of IT systems and related applications. Since SMBs depend heavily on their MSPs for managing their technology, the deployment of Cloud-based solutions with the support of a trusted provider is quickly becoming the norm.
However, MSPs are not simply reselling or partnering with the first cloud service provider they find, nor are they willing to put up with second-rate service. It’s important that MSPs perform a series of due-dilligence tests and investigations of their cloud computing service providers.
As a VAR or MSP, you have 2 options to offer the Cloud to your clients – Partner with a Cloud IaaS provider or compete with hosting providers.
Option 1 – Compete with Hosting Companies
Cloud computing’s future is being defined by “Internet scale.” Simply put Cloud computing services have become very costsly to standup and build-out. From top-tier data centers to redundant enterprise grade network routers and hardware, layed with cloud computing provisioning, monitoring , running a multi-tenant Cloud service is very complex. Since most VARs and MSPs simply don’t have the size, , purchasing volume, talent bench-depth, and Cloud computing expertise to operate a support-intensive operation most MSPs and VARs are partnering with IaaS providers, rather than building their own Clouds for their customers.
Option 2 – Partner with an Established Cloud Computing IaaS Company
Partnering with an established IaaS provider allows MSPs and VARs to immediately offer Cloud computing services to its customers. A true IaaS partnership will allow you to “own” your customers and remain in control, while your partner offers technical support to either you or your end users. You’ll want to interview your short list of providers and ask some questions like those below:
- Does the provider have a leading product and a vision to continue to have a competitive advantage for the forseeable future?
- Does the provider have a competitive partner program, for example commissions and discounts?
- Does the provider have a platform that is friendly to MSP deployments or is the provider more of a platform for developers?
- Does the provider have a history of relaility and supporting it’s products with qualified people, or does the provider offer online forum support only?
If you are an MSP, we think you’ll like what we have to offer. Contact us for a stress-free discussion about how your company can benefit from the Cloud transition today. Learn more about Partnership opportunities – visit the ProfitBricks Partner website.