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Overcome “Freemium” Cloud Competitors Once and for All

19

Mar, 14

Overcome “Freemium” Cloud Competitors Once and for All

Despite the fact that companies are moving their data and IT services to the cloud in droves, VARs and MSPs still have to contend with the DIY freemium cloud offers that appear like a much better deal than what you have to offer — on the surface. And, that’s why getting below the surface is the key to dealing with this objection.

Larry Schwartz, president and CEO of managed services provider Midnight Blue Tech (#205 on the 2013 Ingram Micro SMB 500 list), does not fear consumer cloud services stunting his company’s long-term revenue growth plans. In fact, Schwartz is capitalizing on the cloud trend, and his company saw a 30% increase in its cloud revenue in 2013 over 2012, and it’s projecting another 30% growth this year.

I recently spoke with Schwartz about a customer win he had with a “born in the cloud” nutritional supplement company that was using a consumer cloud offering to host its accounting and CRM software, which its 20 remote employees viewed and updated regularly. When Schwartz first met with the client, it was very frustrated with data loss and other glitches that occurred when multiple employees attempted to input information into the database simultaneously. In fact, the customer was so frustrated that it was ready to upgrade to SharePoint with one of Midnight Blue Tech’s competitors, which Schwartz says was way beyond this client’s needs.

The MSP reinstated the client’s faith in the cloud by explaining how a business-class cloud service from Box differed from the client’s consumer offering, and it was built with companies’ infrastructures and security in mind. Following its explanation, the MSP allowed the client to demo the Box solution to experience the differences for itself and the rest is history. This initial project led to additional opportunities, too, which you can read about in the full article, titled: Ingram Micro SMB 500: Show Your Customers the Business Cloud Difference.

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