While other savvy MSPs have gone ‘all in’ with their cloud computing solutions and are blazing a trail with their sales.
Why do some IT companies have a sold out audiences while others have no one following their cloud offers?
Why Some MSPs are Faint at Heart
Recently, I was about to close an agreement with an MSP’s to sell their cloud solutions through our marketing efforts designed with IT cloud services in mind. Just before the contracts were signed the CEO called me directly to inform me that they were going forward with the agreement but he was going to strike out the option for selling their cloud offering and wanted us to focus exclusively on selling managed services instead.
Of course, this was a deal breaker because our primary marketing message leader is all about cloud solutions. However, we don’t rule out allowing the MSP to also talk about their managed services offerings when they meet with the prospect. I did attempt to discover the reasoning for this last minute switch as their cloud solution was branded all over their website. In fact, one of the reason I had focused on trying to close this prospect was because they were so solidly in the cloud.
What I discovered from his response to my query was that in spite of their best efforts they had not been successful at getting their cloud solutions to take off. In other words, because they hadn’t sold any cloud computing agreements they had completely giving up!
Savvy MSP providers Blazing a Marketing Trail
One of the brilliant managed services providers that first learned about becoming a cloud provider stood out by going ‘all in’ with the cloud and completely abandoned selling managed services. However, one of the first obstacles they faced was the higher perceived cost of a total cloud solutions versus on premise managed services. While the total cost of ownership for on premise is in reality much more expensive it’s just extremely difficult to get your average decision maker to wrap their heads around the hidden or opportunity cost of managed services.
They realized that before they could fully penetrate the marketing they just had to keep marketing their IT cloud services until they found the few early adopters willing to pay a little more to get all the benefits of the cloud. Their strategy was to keep looking for early adopters in several different markets until they had enough volume to get the cost down below the 145.00 and 175.00 price points that most cloud providers are selling their services for.
Now the market is wide open as they have gotten there price point for total cloud services, with all it’s amazing benefits, comparable with on premises managed services. Of course, they did get involved with some horse trading and making a few deals below cost so they could finally get the volume needed to position themselves mass penetration of the cloud computing market.
The truth is that if you’re planning to go big with selling cloud services then you will have to first decide to go ‘all in’! Then you need to realize that whatever your starting price is cannot get you to the point where marketing IT services will explode. You should have a plan to get your cost down to the point where you’re competitive with managed services! To get there you must find the early adopters that are willing to pay a premium but you should be willing to offer deals so that you eventually have enough volume to negotiate your cost down.
If you follow this blueprint then you can become one of the trail blazing cloud providers that has a huge audience!