As cloud giants Amazon, Google and Microsoft continue to slash prices repeatedly in the so-called Cloud Pricing Wars, MSPs and VARs are faced with the challenge of earning a profit reselling cloud services as margins potentially get thinner and thinner.
That’s where fixed-price cloud services come in. Purchasing cloud services from a vendor at a fixed price opens up new options that make it possible to resell those services profitably.
Vendors traditionally have sold cloud backup per gigabyte, and then resellers charge a margin on top of that list price. This leaves MSPs vulnerable to price changes in the market and creates budget uncertainty as usage varies from month to month, leading to unpredictable bills and potential overage charges—which can mean unhappy customers.
Switching to a fixed-price model helps you change the conversation in four ways:
- Avoid the Cloud Pricing Wars roller coaster
- Simplify pricing and offer cost certainty
- Provide relief from storage overage conversations
- Gain better control over margins
“[After switching to the Intronis fixed-price U2 Plan] I immediately signed a 15-location account, and it was easy to explain that no matter how much data they have at each site, it’s a fixed cost,” said Charles Love, Director of Service and Cloud Operations at Big Sur Technologies. “They loved the fact that we can do file, VM, server, and SQL for one price. It’s a far easier conversation then saying that you have no idea what the cost will be for backup as it depends on what they do.”
Learn more about these advantages as well as best practices for packaging and re-selling fixed-price data protection in Pricing Data Protection in a Fixed Price World, a free new e-book from Intronis, which includes an in-depth look at three suggested pricing models. Download it today.