How Smart MSP’s Overcome “Freemium” Cloud Competitors


Mar, 15

How Smart MSP’s Overcome “Freemium” Cloud Competitors

Any cloud service provider (CSP) who’s been selling cloud services longer than a week can attest to the fact that there’s a lot of confusion and inaccurate information around the cloud that must be corrected before one can discuss specific cloud services and their costs.

One of the biggest challenges solution providers have to contend with is the DIY (Do-It-Yourself) and freemium cloud offers that, at first glance, appear quite viable. Getting below the surface is the tantamount to dispelling this assumption.

Larry Schwartz, President and CEO of managed services provider, Midnight Blue Tech (#159 on the 2014 Ingram Micro SMB 500 list), does not fear consumer cloud services stunting his company’s long-term revenue growth plans. In fact, Schwartz is capitalizing on the cloud trend, and his company has experienced 30% year-over-year cloud revenue growth over the past two years.

Schwartz talked to me about a customer win he had with a “Born-in-the-Cloud” nutritional supplement manufacturer. This company was using a consumer cloud offering to host its accounting and CRM software, which its 20 remote employees viewed and updated regularly. When Schwartz first met with the client, they were very frustrated with data loss and other glitches that had occurred when multiple employees attempted to input information into the database simultaneously. The MSP reinstated the client’s faith in the cloud by explaining how a business-class cloud service was superior to the client’s consumer offering, and was built with existing infrastructure and enterprise-grade security in mind. Following this explanation, the MSP allowed the client to demo its business solution to experience the differences for itself, quickly compelling the company to make the right move.

This initial project led to additional opportunities, which you can read about in the full article: Ingram Micro SMB 500: Show Your Customers the Business Cloud Difference.

COLOR SCHEME Unlimited color options are avaliable via Options Panel.