A tale of two partners: reselling the cloud

DSM Miruma Private Public Cloud Computing SAASCloudComputing1.jpegCloudComputing1.jpegCloudComputing1.jpegAcme Reseller took the bait - they signed up as a BigCloud PublicCloud reseller under the promises of riches galore! They simply had to use a referral link or provision customers in the BigCloud PublicCloud and they would receive 12% per month for any services purchased by one of their customers!

Beta Reseller was looking for a comprehensive solution for their customers that would not only add value, but also provide a recurring model to retain customers. They found a leading private cloud provider, spent face-time understanding how cloud solutions could play in to an overall solution fit for customers, and decided to partner with a model where they could count on a fixed cost, and mark up in according to the value they added.

 

Fast forward a year:

Acme Reseller quickly found that the profits from all the customers they signed up dropped in half in month 13, slashing margin even as they continued to add value. Furthermore, 40% of their customers deploying in with BigCloud canceled in less than 12 months due to service issues or frustration with missed expectations. Finally, many customers they told about the solution went out to BigCloud's website and signed up directly and so Acme didn't make any money at all!

Beta Reseller invested a little bit of time on the front-end and made sure all their sales folks were up to speed on their private AND public cloud options. They involved their solutions architects in many deals, and finally added 20% or more to their typical VPC deployment because of the value they were able to bring to the table around setup and training. Their margins soared and stayed high as customers stayed, renewed, and expanded.

Fictitious tale? Yes. But we've seen DOZENS of stories JUST like this one. The promise of the BigCloud's of the world seem so legitimate: because they're big, so they must be good. However, the story of public-cloud failure-after-failure is only expanding. Public cloud is not bad, however it's not the right fit for everyone, and if it is there right fit, having a skilled partner to onboard and configure everything properly will make all the difference in the world.

Are you on the fence? Here's a quick list of things to consider when looking for a cloud partner so that you don't follow in "Acme Reseller's" footsteps:

  • Pick a private company partner you can meet with and who is responsive to you
  • Pick a partner who can deploy solutions on BOTH private and public cloud and doesn't appear to favor one over the other all the time.
  • Ask for a few case studies (stories) of successful customers. Then, ask for one unsuccessful one and ask what they did to support and react?
  • Design your customer's solution from the ground-up before you deploy anything
  • Forecast your customer's cloud demands, and then lock in rates early

In conclusion, public cloud is better.... at public cloud. Private cloud is better ... at private cloud. The difference is like evaluating buying a condo vs a single family home. There are great reasons to bye either but if you show up with a horse trailer to your new condo, you'll be just as disappointed as a mis-matched cloud customer.

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