IT and Business Insights for SMB Solution Providers

Cloud Bundles Mean Business

Best practices for building high-margin cloud bundles that provide value for customers. By Samuel Greengard
Reader ROI: 
CLOUD BUNDLES that include services, software, and hardware provide healthier returns than just selling a cloud service.
BUNDLES also simplify the buying process for customers.
CHOOSE PRODUCTS that deliver the biggest impact to different market segments, produce the best result, and are affordable.
TO GET YOUR PRICING RIGHT, examine internal costs, margins on individual products, and the competitive landscape.

CARVING OUT sufficient margins on cloud products is challenging. One way to break free from the problem—and differentiate from the commoditization crowd—is to focus on bundling. “Blended margins” on bundles containing multiple cloud products, services, and even hardware provide healthier returns for channel pros and simplify the buying process for customers.

“Customers are increasingly seeking bundles,” says Deepak Thadani, CEO of SCO Cloud. “They want a simple, all-in-cloud solution that’s easy to understand and use.” In addition, he says, businesses are looking for pricing that is not going to be a surprise every month, which frees up working capital.

Karl Palachuk, consultant, former MSP, and author of Managed Services in a Month, says that selling a bundle revolves around a few critical factors:

  • Offerings must be client focused.
  • A client must understand 100% of the package.
  • A bundle must solve their problems and address their pain points.

Although there’s no one-size-fits-all approach to cloud bundling, experts say that the right strategy can go a long way toward transforming cloud products and services into a lucrative business.

Simplifying the Complex

Karl Palachuk

These days, the complexities of business and IT aren’t lost on anyone. A typical SMB requires dozens of cloud applications—along with the ability to connect myriad systems and software.

Channel pros are in a position to combine and orchestrate these tools and technologies to not only simplify IT for clients but help them manage costs, according to Eric Long, president of cloud solutions provider TeraCloud, which has offices in Texas, Florida, and Oklahoma. “It’s about assembling solutions in a modular way to add flexibility, save money, create a more predictable OPEX-based cost model, and simplify things,” he explains.

About the Author

Samuel Greengard's picture

Samuel Greengard, a business and technology writer in West Linn, Ore., is the author of The Internet of Things (MIT Press, 2015) and Virtual Reality (MIT Press, 2019).

 

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