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At SkyDestkop we let the reseller hop in the driver seat and take control of the wheel; and their income.
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Compare To An On-Premise Solution

As a Cloud Reseller, you know your client best. You know what solutions they need, what customization needs to take place, and therefore, you know how much the Cloud solution you provide for them should cost.

Additionally, Set up time for SkyDesktop is quick, so you can get started in no time and start earning income.Make SkyDestkop your cloud solution and take control of your income. With the SkyDesktops Reseller Program we put the power of the sale back in your hands.

Revenue Stream Comparison

First, let's look at a typical on-premise install from a revenue stream point of view. For this example we will use Exchange for a 20 user company with a 1 to 2 man MSP/VAR shop:

1. You meet with the client and go through the sales process. Let's be generous and say that it only takes you 1 week to close the client.

2. When you close the deal you order Exchange from Microsoft and hardware from your vendor. With that said your deployment costs and earnings should looking something like this:

  • 2 servers, at a cost somewhere between $3500 and $5000, with a $250 to $500 mark up for you.
  • Exchange licensing which should be about $4600 to $6000, of which you earn around 15%, equaling between $690 and $900 in commissions.

3. Now it is time for the install. This is done by either you or your partner taking around 5 to 6 days at 8 hours a day. Hourly pricing that we have gotten from many MSP sets the high end around $125/hour. This would mean total revenue on the install phase is between $5,000 to $6,000.

4. Now you add in your monitoring and support contract between $500 and $1,200 per month.

This brings your total revenue for a single exchange install to somewhere between $11,940 and $21,800. From the deployment timeline you can successfully install between 2 and 4 systems, depending on the time taken during the monitoring and maintenance that you are performing on your previously installed systems. If every one of your clients had a potential maintenance emergency once a day, your current staff (if both are technical) can sustain at best 40 clients. If your sales team closes 4 deals every month, your resources are maxed out in 15 months. Totaling your revenue on the high end, you will earn around $72,000 monthly recurring and $516,000 in one-time revenue. That sounds really good until we compare against the cloud.

 

Enter the Cloud

A Cloud install has similar steps. Let's take the same deployment scenario of a 20 person company and 1 to 2 man MSP shop:

1. The first step is always sales. Let's say it takes you the same 1 week time period to close the client here.

2. The second step is where things begin to change. Instead of ordering from your vendor, most Cloud vendors give you the ability to deploy without making a phone call using your own private-branded interface. With the average Cloud service you can charge around $8 to $11 per user per month and remain competitive affording them a price break as the size of the group gets larger. This brings your initial deployment to around $160 to $220 in licensing in the first month and $1920 to $2640 in the first year. Let's use our reseller program exchange offering pricing as an example. Our resellers make between $54.20 and $114.20 monthly on the contract and $650.40 to $1370.40 annually. This is already higher than the range for Exchange.

3. During the actual deployment phase, your work is limited to adding users (if the vendor is a suite technology deploying the apps necessary to emulate Exchange) and mapping DNS. This trims deployment time down to 2 to 4 hours. With that said you are able to bill anywhere from $250 to $500 for the install. Though the install revenue is smaller, it took considerably less time for deployment; giving you the ability to deploy more clients. This will become a factor in a second.

4. When it comes to the recurring support contract you can continue to charge the $500 to $1200 per support contract as you will still need to maintain end client machines.

So for a single client contract you are making somewhere between $8,170 to $17,540 annually. At first glance this looks bad for making money in the cloud - until you factor in the time as discussed in point 3 of our cloud discussion. With the added time you can sustain anywhere between 15 and 60 installs a month. Now let's be realistic. Your sales team will probably bring in about 10 deals per month, which you can easily support with the Cloud model.

The other consideration is support bandwidth. Since it is the Cloud, the vendor handles the bulk of support including the monitoring and server-side support. So at worst you are fixing end user machines. Quite simply you are collecting the same - if not more - money, but doing CONSIDERABLY LESS WORK per client. This means that there is not a 40 client support ceiling like there is with Exchange. The Cloud allows you to effectively support double (if not triple) the clients with only a couple of people.

In the end, with Exchange you could potentially close 4 deals per month, earning between $47,760 and $87,200. With the Cloud, you can sell 10 clients, earning anywhere from $81,700 to $175,400 per month. Like the title says: NUMBERS TALK. It just makes sense.

So my question to you is this: would you like to explore how to decrease your operational expenses while you significantly increase your bottom line? If so, please feel free to Contact Us about our Cloud computing solutions and how we can help you achieve your goals.

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