How To Price Managed Cloud Services

How To Price Managed Cloud Services

With the cloud transforming IT and big companies looking for a piece of the managed services market- often

Published By - knowledgeNile

An MSP’s guide to thriving in the Cloud Services

With the cloud services transforming IT and big companies looking for a piece of the managed services market- often at low, hard-to beat rates- the MSP business is changing. Yet all that change is spawning valuable new services and fresh revenue streams.

Physical servers and network equipment have been reliable sources of revenue for MSPs, needing manual maintenance and regular upgrades. But in the virtualized, automated world of the cloud, the need for that kind of hands-on intervention is becoming a thing of the past.

So what’s left for you to manage?

In fact, the cloud itself requires managed services, many of which can be delivered remotely so you can do more work with less technician time and labor — reaping the benefits of greater efficiency and higher margins.

The potential of high-margin managed cloud services has drawn massive players like Microsoft® and Google® to provide low-cost, ‘one-stop’ IT services. And they have a natural entry point to the market: as providers of virtualized IT infrastructure.

Clearly that’s not a scale on which smaller MSPs can compete. But there is a traditionally underserved domain worth exploring: the desktop. In virtualized environments, you can manage all your clients’ desktops from a central console and deliver solutions through the cloud. Packaged as a monthly subscription service, this kind of desktop management is easy for client organizations to buy — and for you to sell.

Small and mid-sized MSPs have one other advantage as well: they can offer the personal touch that Microsoft and Google can’t, covering both onsite management and offsite management. With the cloud disrupting MSPs’ traditional business models, many are unsure about how to package and price new cloud offerings.

Learn about the best practices for pricing managed cloud services considerations for the cloud and advantages that small and mid-sized MSPs have.