Successful service providers in today’s dynamic cloud and hosting market have a lot more to think about than they did 5 years ago. At that time, most service providers were just beginning to realize that the public cloud had become more of an opportunity to drive new revenue growth than it was a competitor. That’s where the journey started for today’s service providers who have changed how they go to market — turning their approach completely upside down and seeing significant business success.
You’re probably like many service providers, working with some of or all the hyperscale cloud providers to deploy infrastructure services to support your customers’ public cloud initiatives. This “asset-light V1” model has enabled you to maintain control of your customers and their data but has come at a cost. With asset-light solutions, you can grow your service catalog with very low to no risk. But the downside is lower deal margins compared with the higher margins of traditional core service provider infrastructure services.
Asset-light V2 is already here
Similar to managing customer data in a public cloud, a new asset-light V2 (NetApp as a Service) model is now being offered as fully managed solutions to service providers. You can once again scale your service catalog with little or no risk and can also deliver specific managed white-label application solutions to your customers wrapped with more of your higher margin services. For example, NetApp offers both fully managed and supported NetApp® Virtual Desktop Service for Microsoft Windows and NetApp SaaS Backup for Microsoft Office 365. You can sell both to your customers without the financial risk and exposure of heavy capital expenditure (capex) investment in these types of infrastructure solutions.
What is the right model to grow your service provider business?
Service providers manage and operate their businesses differently. But every service provider works hard to maintain its customer installed base and to offer solutions and services that promote customer satisfaction and reduce the opportunity for customer churn to another service provider. For most service providers, the traditional capex model drives the strongest margins for core infrastructure solutions like storage as a service. For service catalog extension and for typically non-core-application solutions, asset-light-based solutions are the ideal way to fulfill customer requests and to keep customer systems under your operational management.
To support public cloud consumption requirements for your customers, NetApp technologies are deeply integrated into the largest hyperscale cloud infrastructures, which means that you get a familiar interface and management platform and your customer gets the experience the desire. And as you assess new business opportunities, consider what many service providers are doing. They’re moving managed infrastructure services on-premises and are delivering the managed private cloud value for applications that don’t fit into the public cloud world.
NetApp is the only service provider partner that offers multiple levers that help you use the right business model to support your service provider business needs and to support the right solution for your customers.
Choosing the right service provider business model is critical so that you get the flexibility and the operational levers that transform how you deliver your services to your customers. With NetApp, whether you deploy higher-capex-risk infrastructure services that deliver higher margins or offer nonstandard solutions at low to no risk, you can comfortably navigate the complicated cloud and managed hosting world. You can sleep well at night knowing that NetApp understands your business and has the right business model for the right service provider customer solution.
Find out how to deploy the right model to transform and to drive success for your service provider business. To learn more about the Fueled by NetApp Service Provider Program and the available solutions, contact a service provider specialist today.