What do VARs and Clouds as well as MSPs have in common?

February 9, 2011 – 5:40 pm

What do VARs and Clouds as well as MSPs have in common?

Several things it turns out:

  • Some Value Added Resellers (VARS) (links to VAR related content and comments here, here and here) sell cloud services or solutions
  • Some VARs are also cloud or managed solutions providers (MSPs) themselves, thus some cloud or MSPs are VARs
  • Some VARs, cloud and MSPs compete on lowest or cheapest price
  • Some VARs, cloud and MSPs have diverse product offering portfolios
  • Some VARs, cloud and MSPs compete on value (e.g. not price)
  • Some VARs, cloud and MSPs value is in the trust, security and peace of mind that they provide to their client

For some, the value of a given VAR, cloud or MSP is the ability to shop around for a resource to get the lowest price.

For others, the value of a given VAR, cloud or MSP is the ability to get the best value which may not be the lowest price rather the most effective overall cost per services with trust, security, experience and peace of mind provided.

Value to often is confused with being cheap or lowest cost.

Value can also mean a higher price that includes more thus providing a better effective option (e.g. super size it).

On the other hand, higher priced should not be confused with always being a better product, service or solution.

You may find that the initial low cost requires other add on fees or activation charges, surcharges for use or activity along with optional services to make the solution useful all resulting in an overall higher amount to be paid.

Lowest cost may result in a bargain now and then if that fits your needs.

Value can also mean a better option providing an improved return on investment if a solution or service meets and exceeds your needs and expectations.

As an example, I recently switched from a cloud backup MSP (Mozy) not due to cost (costs would have gone down with their recent service plan
announcement) rather I needed more value and functionality. With my new cloud backup MSP I get more functionality and capability that I can continue to grow into even though the price per GByte is higher than with my previous provider. What made the change of positive is what I get in the higher fee per GByte that in the end, actually makes it more affordable, not cheaper, just better value and return on investment.

For some low cost is value while for others, value is more than lowest cost including what you get for a given fee including trust, security, service and experience among other items. Different people will have different requirements or needs for what is or is not value.

If you do not like the term value, then try price performer.

Bottom line for now, with VARs, MSPs and Cloud (Public or private) dont be scared, however look before you leap!

Ok, nuff said.

Cheers gs

Greg Schulz – Author Cloud and Virtual Data Storage Networking (CRC Press), The Green and Virtual Data Center (CRC Press) and Resilient Storage Networks (Elsevier)

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