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Business Class Cloud Computing Isn’t Cheap

29

Apr, 14

Business Class Cloud Computing Isn’t Cheap

I recently had the privilege of talking with Troy Rice, owner of cloud services provider (CSP) See The Matrix (STM). Unlike many IT service providers that migrate to managed services and then to cloud services, STM jumped right over the managed services phase and went right to the cloud eight years ago. Although the company has enjoyed healthy revenue growth over the past six years (19% average year-over-year growth), Rice was humble about his foresight to move to the cloud so early on.

“In hindsight, it wasn’t so much that we were trying to skip over traditional managed services – we actually did try selling it for a brief period – but the tools were so bad back then that it felt dishonest charging customers for this service,” said Rice. “Hosting IT assets in our data center gave us more control over the process and enabled us to scale our business without having to add a lot of employees.”

Despite the fact that STM was on the bleeding edge of the cloud services trend, it still faces many of the same cloud objections as those just starting to sell cloud services. One of the biggest challenges the CSP encounters is from those who confuse a business-class cloud offering with consumer-class freemium cloud offer.

“We’re very upfront with customers that while the cloud offers several advantages over traditional on premise computing, it’s not cheap,” said Rice.

To help combat cloud price objections STM creates a side-by-side comparison for prospects showing them that for the first three years an on-premise IT solution may actually be less expensive than an equivalent cloud offering. That’s exactly what the CSP did with a recent construction company prospect. You can see how that turned out by reading Ingram Micro SMB 500: Private Cloud Done Right.

 

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