Cloud computing has become one of the most significant market disruptors of our time. For independent IT consultants and Managed Service Providers Cloud Computing extends new business models and offers a wealth of opportunities to not only increase profit margins but also to provide customers with the optimum solutions for their businesses.
What is a cloud services reseller?
In simple terms a cloud services reseller either promotes the offering of a cloud service provider, or incorporates them into their overall service package. However, it is much more than that. Business decision makers may have some knowledge of cloud computing but will most likely lack the in-depth experience to know what is the best solution to fit their particular requirement. This is where a good, independent, cloud reseller business will fit in, getting involved with their business planning, taking the customer requirements and sourcing the best solution from a range of cloud services. Just like any consultant, the skill is not blindly pushing the customer to the household name cloud platforms like AWS or Azure, but also seeking out the niche providers who can work closely with the Reseller, and the Customers, to architect the best solution for them. Businesses may often look to a big-name Value-Added Reseller VAR for their licence subscriptions, but they don’t need to, and reasonable margins can be made as an indirect reseller.
What are the benefits of being a cloud computing reseller
There are many benefits of being a cloud computing reseller, here are just a few:
Consistent income stream
In the old days an MSP may sell a server to a customer for a few thousand, make some profit on the setup and licences and then wait 5 – 7 years till they can (hopefully) repeat the exercise. With cloud computing there are completely new business models, OK there isn’t the nice big upfront pay check, but the rewards of a reseller program are consistent and ongoing, which is a great boon to cashflow.
Reduce the burden of expertise
Being an expert on everything just isn’t a thing, but by calling on the services of cloud computing providers their skills become part of your portfolio. OK, some cloud platforms such as AWS and Azure require as much detailed knowledge as their on premises counterparts but others offer a complete managed solution where you can let the provider worry about the technicalities.
Wider Portfolio of Services
Offering a wide range of services engenders loyalty from your customers. Your Portfolio could include reselling Microsoft 365 subscriptions, web site hosting, hosted desktops, hosted apps and application development, mail filtering, cloud backup, security and compliance, as well traditional on-premise solutions such as managed printing, networks and network security, and anti-malware. By offering all these services your customer will look to you first for all their requirements when business planning.
Reduced Capital Investment
Even the smallest cloud platform requires significant up-front investment in infrastructure as well as human resources to support and manage it. For small independent IT solution providers this investment represents a significant risk. By reselling a cloud service, you let other’s take that risk and make the investment.
Adding Cloud Services to an existing Product
For software developers and vendors reselling cloud services alongside your software makes things simple for your customer and increases your income. Utilising solutions such as hosted remote desktops can provide a way of cloud hosting your desktop application without any need for re-coding.
What are the requirements to become a cloud computing reseller
Generally, there are no specific requirements for reselling cloud services. There doesn’t tend to be any sales targets, minimum contract values or hurdles of that nature.
For some services a level of expertise is required. If you’re reselling Azure cloud services for example then you’re going to need the same level of skill as you would need for implementing on-premise solutions.
Some managed services, such as the hosted remote desktop services from Your Office Anywhere, don’t have any requirements to becomes a reseller beyond introducing a customer.
Of course, the more knowledge and experience you have of a particular solution the easier it will be to resell it to your customers. Many cloud service providers will assist with pre-sales, providing sales presentations, demonstrations or even dedicated testing environments.
How much money can I make reselling cloud computing
The amount of revenue you can earn reselling cloud computing services depends upon the type of products and services you are reselling and whether or not you can add additional value on top of what the cloud services company is offering.
As an example, reselling Microsoft 365 subscriptions as an indirect reseller to a bigger Value Added Reseller VAR will earn you a percentage of the monthly subs. This could be enhanced by providing support for Microsoft 365. This could either be an ad-hoc thing, but many MSPs are charging a fixed monthly amount for unlimited support. You can also add value by offering cloud migration services, for example moving their email to Exchange Online, or building servers in Azure
If you are reselling a hosting service for an application or hosted desktop then this could also be wrapped up with other services as part of the monthly managed services bill. However, if you wanted less involvement then you can simply resell the cloud services and let the service provider have the commercial relationship with the customer, but paying you a monthly commission for bringing the customer to them.
Take a look at this article giving some examples of commission for companies in the reseller program for Your Office Anywhere’s cloud platform (hosted desktop) service.
Why Resell cloud computing with Your Office Anywhere
Resellers are central to Your Office Anywhere’s business model and account for more than half of our monthly turnover. Between them in 2019 our resellers earned hundreds of thousands of pounds either as commission or profit margin. Some of the best resellers earning over £20,000 in commission per year. These are just small independent companies that are adding 5 figure sums to their bottom line simply by reselling Your Office Anywhere’s cloud computing services alongside other solutions.
Our resellers are split into two main types:
Software Developers/Vendors
IT Solution Providers/Managed Service Providers
Benefits for Software Developers
- Provide a fully feature rich desktop application “in the cloud” with no compromise on functionality
- No re-coding
- No costs to the developer/vendor whatsoever
- Increased revenue
- Customer can host other applications alongside yours such as Microsoft Office, you can also make margin on this
Benefits for IT companies
- Increased portfolio of products and services
- Improved reputation with customers
- Work alongside our specialists during cloud migration projects
- Decent commission with potentially zero ongoing effort
- Steady income stream instead of feast and famine
- No minimum requirement, start from reselling a single user system
- Resellers across the globe
To find out how to kick start your cloud reseller business with Your Office Anywhere please give us a call on 01282 500318, visit this page, or complete the form below