I sat on a plane the other day next to a grandmother of two, and she asked what I did for a living. I explained that I work for a leading Cloud Services Provider and her next question was, ‘how do I get into the cloud?’ With the prevalence of cloud and the acknowledgement that organizations must evolve to remain competitive, this has become a top question for CEOs – along with savvy grandmothers, apparently!
There are several business models that have emerged in the world of cloud. An organization that has the assets, financial backing and skills may choose to build their own cloud, becoming operators as well as sellers of their core product or service. An organization may also opt to partner with a proven cloud provider and have their customers work directly with that approved cloud provider of choice.
Yet, perhaps the fastest-growing model in the cloud services industry is that of ‘white-label’ partnerships. These partnerships represent a great opportunity for organizations looking to evolve and keep up the pace with the ever changing IT landscape – or for organizations with a traditional ‘onsite’ focus. As customers move their own cloud journey forward, so must their partners. And with that – the world of white-labeled cloud continues to expand.
There are 5 key reasons why a white-label cloud partnership makes sense for many technology service providers today:
1 – Maintain and evolve your brand:
You have built an organization over several years and have the opportunity to capitalize on all of the good solutions and services you bring to your customer base today. However, introducing another partner or brand may not resonate with your customers. Hence, a white-label offering may make more sense. Wrapping new cloud services around your business enables you to seamlessly develop new capabilities with your existing base – all under the banner of YOUR brand.
2 – Gain all of the skill sets and infrastructure of a cloud organization, without building them from the ground up:
Power, electricity, racks, capacity, compute, storage, help desk and 99.99% service level agreements (SLA). Hiring these new skills and building the cloud infrastructure for your business equates to high capital upfront costs and the associated risks. Your core business is likely one that focuses on the needs of your customers in their technology environment or a specific solution you provide, not the infrastructure it runs on. A white-labeled cloud offering enables you to provide a full solution for customers who may be shopping elsewhere given the cloud options out there - all without the upfront risk and cost.
3 – Be the trusted advisor to your customers:
A great white-label cloud partner doesn’t stop at powering your cloud platform for your brand. They’ll help educate your team on the benefits of cloud and make the right recommendations to your customers. And when your team’s knowledge and insight doesn’t stop at your solution, your organization becomes a trusted advisor for your customer base (and future customers).
4 – Wrap unique services around the cloud platform and drive additional value to your customers:
Creativity abounds when thinking about the value-added services that can be brought to the table with the cloud. Integration, help desk, reporting, migration and managed services are merely a short list of where profitability lies. A white-labeled partner helps you get to market with unique services for your customers that drive additional value.
5 – Launch into the world of consumption-based revenue and drive a long-term run rate:
It’s arrived, it’s prime – so you may as well dive right into it! That’s the world of MRR (Monthly Recurring Revenue). Movement of capital expenditures to the operational line for a customer is the new reality – and there is an expectation that their partners will run their business in the same way.
The focus on cloud is intense, the opportunity is now, and if you aren’t building a long-term run rate business, then the market will likely pass you by. White-label scenarios enable you to drive the transformation in your business – with all the bells and whistles of cloud – by naturally growing and extending your existing business. It’s an effective and profitable model for evolving your business to the cloud.
For a deeper dive on transforming your current business model to the cloud, download The Essential Guide to a Successful Cloud Model.