I frequently get asked this question. First, the big thing to realize is that the Cloud isn’t going away. It’s no longer a question of whether or not your clients are going to move to the Cloud, but rather when. Second, you can seriously increase your recurring revenue if you sell the Cloud with the right partner.
Your clients are moving to the Cloud for good business reasons, like to access their data anytime, anywhere and on any device, and to increase efficiency, to name a few.
These are other reasons why businesses are moving to the Cloud…
Low Cost: Most cloud computing services can be obtained at a low cost. Businesses are discovering that it’s less expensive to procure these services from a cloud provider than it is to run and maintain applications on their own server.
As more software and IT solutions move to the Cloud, the opportunity for cost savings increases. They can avoid paying upfront fees for software licensing or hardware purchases and can make use of per-user subscriptions and hosted solutions.
Cloud computing also helps smaller firms compete with their larger counterparts by offering them access to the same enterprise-grade technology at an affordable price.
Scalability: Cloud computing services are provided on demand. When your clients purchase cloud services, they can easily add storage, computing capacity and new features. They can also quickly delete services that they no longer need.
They won’t waste money on IT solutions that “sit unused on the shelf.” The ability to scale cloud solutions up or down to fit their current needs means they don’t have to waste money on resources that they don’t require or have to spend large sums of money to bring more resources onboard. Because cloud solutions are billed on a per-user basis, they only pay for what they need.
Data Security: The Cloud provides an additional barrier between hackers and your clients’ data by storing their files in an offsite location. Even better, files are encrypted and therefore only accessible to designated members of their team. And, with Mobile Device Management, if a device is lost or stolen, the data stored on it can be removed remotely.
Cloud partners like CPU employ stringent security measures. Plus, our staff is trained and experienced in the implementation of security measures that align with current security risks.
Data Backup & Disaster Recovery: The redundancy of cloud backups is essential for businesses today. If they save data in local devices, they risk losing it if their office is flooded or if a fire occurs. Data will always be safe and recoverable when it’s in the Cloud.
Cloud solutions like virtualization allow them to recover their entire IT infrastructure quickly, applications and all. Servers, desktops, files, and apps are all stored in a secure offsite data center, which is essential for effective business continuity and disaster recovery. Whether they’re faced with something as minor as a brief power outage or as significant as a weeks-long disruption, their IT assets will still be available to them 24/7.
Enhanced Collaboration: Hosted cloud solutions let your clients access and edit documents in real time. This is invaluable when they have staff working on a document together but from separate locations.
Document Control: Emailing files back and forth gets confusing and makes it next to impossible to keep track of which version of a document is the correct one. The Cloud prevents this. When a document is stored and edited on the Cloud, there’s only one version of that document. This guarantees that their team is always working with the right information.
Think about it… Although you might earn $500 to $1,000 by selling a physical server, that’s where your revenue stream ends or at least takes a big downward dive. When you sell the Cloud to your customers, you create an ongoing revenue stream. As long as you keep providing excellent service to your customers, they’ll continue to depend on you for all their technology needs.
Here are some ways that you can increase your MRR by selling the Cloud…
Bundle Cloud Services: Bundling is a great way to build a monthly recurring revenue stream. Build out bundled cloud services to fit your clients’ requirements and budgets. You can offer a package that includes Software-as-a-Service solutions, as well as backup and disaster recovery services. Some of your clients will require cloud backup sources to meet their regulatory requirements. And others will require up-to-date hardware to access these services. This is your opportunity to cross-sell cloud services along with IT hardware.
White Label Our Cloud Services: You can offer your clients a fully branded integrated suite of cloud solutions. From proposal development to sales and marketing support, working with a cloud service partner like CPU who provides white label services can be the next step to building additional MRR.
Recurring Contracts: Typically, once a client signs on to the Cloud, they stay with it. This provides an opportunity for you to gain from recurring pre-paid annual contracts and promote client retention. Even when your clients sign up for recurring pre-paid contracts, be sure that you meet their changing needs. When you do, you’ll build the loyal clientele that you need to grow your MSP business.
Incentivize Your Sales Team: When you pay a monthly commission to your cloud sales team based on MRR margins, they’ll be incentivized to sell more. They are your key determinant of MRR and can identify present and future opportunities that will ultimately increase their compensation and improve your bottom line.
Provide Value Added Services: You’ll always be looking for new clients to sign on to the cloud services you sell, but don’t forget your existing ones. They will be your true source of MRR. Offer them a few free upgrades, perhaps complementary onsite training and other value-added services that will keep them signing up for your cloud services.
The key is to understand your clients’ needs and help them realize how the cloud solutions you sell will positively impact their bottom line. Refer to the benefits we listed above and other articles we’ve written to help you market cloud services.
The most important thing to remember is that your clients will need guidance during their transition to the Cloud. If they can’t get what they need from you, they’ll turn to a competitor.
In the meantime, for more answers to common questions that I’ve been asked, visit cloudservicesformsps.com.