IaaS Offerings Create Opportunities for Professional Services

VARs and MSPs are beginning to understand the shift in technology and spending trends by customers from traditional capital expenditure to Cloud. With this, they are transitioning their product offerings and adopting new business models focused on Hosted IT and monthly recurring revenue models.

However, we often hear from our channel partners that they are concerned with the risk of losing the incremental professional services that come with selling traditional hardware-based IT solutions. Design, installation, monitoring, and hardware upgrade cycles are just a few of these services. This a common misconception amongst the IT channel. The reality is that all of these value-added services remain when proposing cloud-based solutions to customers. The difference, however, is the delivery model changes from physical on-premise to cloud infrastructure but, it gets even better! In addition to the end user benefits that we have discussed in other blog posts, moving your customers IT assets to the cloud makes delivering initial and ongoing professional services far more efficient and lower cost to your organization. Not to mention that service levels will improve dramatically for your clients as there are no wait times for hardware, components or on-site support.

Moreover, with a cloud business practice, there are new services that can be created and delivered to your customers that might otherwise be purchased from other sources (read your competition!). This graphic (published by Microsoft), as seen from the eyes of the customer, illustrates very clearly the separation of responsibilities when moving from an on-premise IT infrastructure to the various cloud business models:

Seperation of Responsibilities

From the customers perspective, it’s obvious that adopting the use of Cloud IT in one form or another result in reducing or, removing altogether, the burden of IT ownership and benefiting from the associated capital savings.  Also, transitioning from on-premise to Cloud Infrastructure (as a Service) provides various opportunities for VARs and MSPs to add value to the customer by managing the blue boxes while generating ongoing monthly recurring revenue streams from the grey boxes.

Add to this the benefit of selling the entire IaaS offering under your brand means that selling cloud solutions not only maintains your existing professional services but provides the opportunity to leverage your cloud offering to deliver new services and drive additional revenue streams for your business.

What other service opportunities do you see with the cloud?


Jim Stechyson

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