5 Ways Technology Providers and Consultants can Optimize Revenue with the Cloud: Part 3
Why You Can Not Afford to Ignore Cloud Technology
Every business needs to innovate in order to not only survive, but also to thrive. Maintaining the status quo every year will never guarantee success, and it will certainly never ensure long-term viability. But differentiating your business and providing a unique value proposition will.
As a technology expert, you know all about providing unique value. You know that clients purchase products and services from you because of your promise to deliver a better value than your competitors. But how much value is your current portfolio delivering? Are your services still unique? More importantly, will they still be five or ten years from now?
For most technology providers—such as VARs, MSPs, Systems Integrator and others—those answers are: ‘Not as much as before,’ ‘Our uniqueness is dwindling,’ and ‘in five years, our offerings will be outdated.’ If this sounds familiar, fear not. It’s not too late to add a service to your portfolio that will differentiate your business, empower you to offer unique value, and position you for financial success into the future. What is this secret weapon? In a word, “Cloud.”
Here are five ways technology providers and consultants can optimize revenue with the cloud, part 3.
3) Optimize Revenue Growth with the Cloud
Cloud services can optimize your revenue in several ways:
- They enable you to add brand new revenue streams,
- They come with no upfront investment,
- They deliver faster ROI, and
- They decrease your own operational costs.
Your current revenue is limited to the products and services you offer; unless you raise your rates or scale your business, there is no way to increase revenue. By partnering with a cloud provider, you can grow revenue without incurring the high cost of customer acquisition and support. To get into the cloud market on your own, you must build a sales and support organization which would require hiring and retaining knowledgeable people to support the cloud environment. If you leave the sales and support to a cloud provider, it translates into revenue growth for you without any large investments. It eliminates the need for you to build a cloud environment, buy equipment and licenses, and acquire and train new resources. If you partner with a cloud provider, you would simply open the door to new opportunities for your business and theirs. You would keep both the customer relationships and the optimized revenues.
Not only can you earn more revenue with the cloud, but you can earn it faster. Technology providers and consultants are moving beyond SaaS (software as a Service) solutions into IaaS (Infrastructure as a Service) solutions for clients who want to virtualize their servers and data center environments. Instead of having to buy servers and build out physical networks, which could take weeks to months, rolling out infrastructure can now be done in literally minutes. IaaS services, such as private data center solutions, mean rapid deployment for your customers and reduced time to market and faster infrastructure provisioning for you.
As an MSP, you might purchase technology from a third-party provider and then pass along the costs to your clients. As a VAR, you sell third-party software and hardware at a markup. But what if you no longer needed to purchase anything yourself? What if you could simply sell it and earn a portion of the monthly subscription revenue? This is just one example of how cloud services can enable you to reduce your own IT operational expenses.
REAL –WORLD EXAMPLE: “Tech Providers can Boost Revenue with Monthly Cloud Subscriptions”
With the rapid adoption of cloud services by SMBs, the line between many technology providers is blurring. Take MSPs, VARs and Systems Integrators for example. A VAR’s or Systems Integrators’ work is usually finite while an MSP’s contract is often left open-ended. The advantage of cloud subscription revenue for an MSP is clear: new, diversified revenue streams every month. But the advantage of cloud for a VAR or Systems Integrator can be game-changing—it can enable them to do more consulting and customization services to supplement their traditional flat-rate license fees for third-party software. No matter which type of technology provider you are, the cloud business model can optimize your revenue.