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3 Options MSPs Must Consider Before Selling Cloud Services

25

Jan, 15

3 Options MSPs Must Consider Before Selling Cloud Services

by SherWeb

36%. That’s how much digital content consumers are expected to store in the cloud by 2016. According to statistics released by Gartner, that’s a big jump from the meager 7% they stored in 2011.  It seems everyone wants to access and share content on mobile devices, such as laptops, tablets and smart phones.

This is good news for MSPs (managed services providers). But before you start celebrating, let’s take a closer look. Let’s assume you want to tap into the booming market for cloud solutions. Before you draw up your client list, you have to decide what your customers need and how you’ll deliver the goods. Consider these options:

  1. You can build your own cloud package and sell it as an independent.
  2. You can use a white label offering from another cloud provider, such as SherWeb.
  3. Or, you can jump on the bandwagon as a reseller for an industry giant like Amazon or Google.

Can you take the heat?
Building your own cloud is pretty risky, but there are advantages. As an independent cloud provider, you’ll have full control. You’ll choose the technology you want, the level of support you’ll provide and the rates you’ll charge your customers. If all goes well, you can make decent money and eventually hire enough partners to resell your services. But there are other factors to consider.

Can you afford it?
You’ll have to build an impressive infrastructure to position yourself as a cloud provider. This means a lot of money up front to buy the right technology and hire the technical experts who will support your customers. You’ll also have to invest in marketing. How will you reach your customers and develop your brand? And don’t forget the competition. You’ll be up against a lot of well-established providers, like Microsoft and Amazon, who are already turning profits selling their own cloud solutions.

 How long can you wait?
As an independent, you’ll want a quick return on investment (ROI). In most cases, it takes about three years. This is a long time and an absolute eternity in IT. You have no idea what cloud solutions will look like in three years. Can you afford to wait that long?

Try the white label.
Maybe you don’t want to invest in expensive hardware, but you still like the idea of being your own boss. How about selling a white label offering from another cloud provider, such as SherWeb?

There are several good reasons to do this:

1. Build your brand.
2. Set your price.
3. You decide what kind of support you’ll provide.

Many MSPs say this is the best of both worlds. You can build your own cloud services as an independent and still have access to the environment and human resources as a reseller for a market leader. It’s also the most profitable way to sell cloud offerings because you’re not controlled by the margins set by the bigger companies.

Some people still prefer a low-risk solution. In this final choice, you become a reseller for an industry giant such as Amazon or Google. You won’t have to worry about staffing or infrastructure and you’ll be selling well-known products. Here’s the downside:

  1. Your margins could be smaller because they’ll be set by the company.
  2. Competition is stiff. Why should a client call you? There are about 29,000 other resellers out there!

Where will you be in 2015?
Chances are, you’ll choose the option that suits you best. While there are many programs out there, we feel SherWeb has the best Partner Network on the market today.

Our Infrastructure as a Service (IaaS) is built with the fastest hardware and software available (flash technology-based SSD, Microsoft Hyper-V 2012 R2, Intel CPUs, RAM and chipsets). We have a 99.999% uptime guarantee with a financially committed SLA.

SherWeb also offers excellent margins and payouts, 24/7/365 technical support and a comprehensive package of marketing and sales tools, including a dedicated Account Manager. Contact your Ingram Micro representative at 1 (800) 705-7057, option 4 for more information about joining our Partner Network!

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