Why would a Brigantia Partner want to use Cloud Business IaaS?
You are an IT professional so you already know why a business would want to make use of running a server or service in the cloud. This brief article looks at some of the more left-field reasons that would benefit you, the Brigantia Partner, when you provide Cloud Business Infrastructure as a Service to your clients.
You already know about the benefits of having IaaS as a source of recurring revenue streams, however you may not have considered that it makes your clients more invested. If you sell your client tin rather than cloud, then every tech refresh puts your trading relationship at risk. Anybody can sell that hardware to your client and if they have a lower cost for the hardware then they may win the customer. You will also be competing with the OEMs: companies like Dell continue to sell more and more services directly…
However, once your client is on IaaS, the monthly cost is known to them plus there is nothing along the lines of a tech refresh to allow your competitors in. This is instead of a customer knowing they have to update the server, looking to find the lowest price, putting in the resources and often money to make that switch… Once on IaaS, your client now has no need to ever switch as changing requirements can easily be dealt with.
Another angle is the efficiencies of selling services around the IaaS installation. You can focus on services like OS admin, server administration, monitoring, backup, security management; all these services increase your recurring revenue billing, plus with higher margin, higher staff utilization, and all the while making your clients even more sticky.
The biggest cost for most Brigantia Partners is staffing: the majority of staff are supposed to be revenue generating in one way or another. Most business leaders in this sector are constantly looking at staff utilisation, meaning how much of the hours their employees work are somehow directly billable. In the old way of doing things, an engineer might have to travel to a client and only start being billable once onsite. Maybe there was some prep work or research about a client’s environment required before setting off, again probably not billable.
The fact is that in a traditional setting getting an employee to be 75% utilised is tough unless they are in a full-time onsite placement and in those cases your margin is usually not that great. The alternative is that employees can be delivering a service such as remote firewall management, monitoring or remote DBA. With this version, the utilisation can be nearly 100%; a single person can work and bill multiple clients efficiently.
Cloud Business IaaS gives MSPs the advantages of selling their infrastructure and app skills in a service model. Since each cloud environment has the same underlying infrastructure and toolset, the unbillable time switching from one customer to another is tiny. Selling service contracts now has zero travel requirements and the expensive hardware components are not there, leaving just the high value, more scalable, OS administration parts. The bottom line is that doing more or less the same support for a customer in the cloud is going to have lower costs, higher billable employee utilisation and better margins.
If you want to know more about Cloud Business IaaS then please email email@example.com or call Brigantia on 020 3358 0090.