Q

As an MSP, should we build our own cloud or resell someone else's?

Managed services expert Lauren Robinette explains when it makes sense for smaller or midsized managed service providers (MSPs) to build out their own cloud services.

As a midsized managed service provider (MSP), how should we decide whether to build our own cloud services or to become a partner and resell/bundle someone else's?

Time to market is a general consideration when developing a cloud migration plan and making investment decisions. Generally, a good initial strategy is to minimize upfront costs by leveraging another provider's infrastructure and using value-added services to increase your average revenue per user (ARPU) -- at least until you've proven yourself to the installed base and you have the revenue to justify the investment in infrastructu...

re. 

Depending on available offers from partners, look for a lower-margin offer with an option to build, operate and transfer to your infrastructure when the profit-and-loss statement makes sense. For your initial steps into the cloud market, it is often easier to first train just your sales team to be cloud resellers; when the time is right, migrate the infrastructure and delivery team after you have established an installed base.

Have a question for Lauren Robinette? Send an email to editor@searchcloudprovider.com.

This was first published in February 2012

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