CAAB IS ON A MISSION to help channel pros convert their managed service practice to a cloud practice, according to Mor Mordchaev (pictured), global partners director for the channel-based public cloud service provider.
Founded 27 years ago, Israel-based CaaB has been offering public cloud infrastructure services since 2007 and has been working its way into North America since roughly 2017. Its chief differentiator from the “big three” cloud providers, according to Mordchaev, is that CaaB is a channel-only vendor with a deep and differentiated understanding of SMBs and the SMB channel.
“We built a really good technology that lends itself extremely well to the SMB market,” Mordchaev says.
CaaB’s white-label services are sold at a flat rate, which helps MSPs address a key concern SMBs have about the cloud: the unpredictability of service fees, which typically vary month to month based on consumption.
To determine what Mordchaev calls “fair use” pricing, the company collected data from over 100,000 virtual machines in its infrastructure and created a generously portioned standard VM offering with 5TB of traffic capacity, two CPUs, 8MB of RAM, and a 200GB SSD that sells for $73 per month. Though the company collects overage fees from users who exceed those limits, it almost never needs to do so.
Partners can pool VMs as well, and split resources across customers as needed. An MSP with a 10-machine subscription, for example, can apportion half of the 50TB of traffic they get every month to one especially large client and divvy the rest up in varying amounts across 15 smaller accounts.
With CaaB’s comparatively low rates, partners can clear far higher profits than with the name-brand offerings. “The average margin of our MSPs is about 40%,” asserts Mordchaev, who adds that the simplicity of the platform enables MSPs to “create a virtual server in 60 seconds.”
Those are some numbers that are likely to help CaaB’s mission.