Welcome to episode 88! In this session I am joined by Gerrit Lehr to discuss how our Cloud Provider partners need to address a multi cloud practice and opportunity. Considering most Cloud Provider partners utilize on-premises data centers and services, delivering services using our MSP portfolio means there is a different economic and service portfolio to model.
There are 2 routes to market for our Cloud Providers; rental, meaning the provider owns and operates the hardware that they deliver VMware services upon, and MSP, whereby the provider utilizes a VMware (or 3rd party) datacenter or service to deliver the VMware service. The challenge comes trying to model how to look at the MSP business if you have always been a rental provider. As Gerrit explains classic TCO and EBITDA do not apply in MSP, moreover Cloud Providers need to look at very different KPI to make a judgement about the investment.
Metrics like Customer Acquisition Cost (CAC), Lifetime Value (LTV), Average Revenue Per Customer (ARPC) and Annual re-occurring Revenue (ARR) maybe somewhat new/different to many providers, however they are critical to model correctly to understand how you can work with SaaS solutions and deliver services in co-opetition clouds like AWS, Azure, Google etc.
Gerrit has written a fantastic free white paper for VMware MSP services and how Cloud Providers should plan their services based around MSP metrics, differing from on-premise economics. It’s a complex change for many providers, and the white-paper aims to make this as simple as possible to understand and navigate.
With customers consuming managed services in your data center, MSP brings the opportunity to deliver managed services on alternative infrastructures and services. As customers typically have hyper-scale clouds already, this means you need to address co-opetition and proactively operate a model where you handle the customer relationship, T&C, pricing, billing and support for all the customer clouds now and in the future.
Join us as we discuss the MSP program, how it can simply address use cases such as global coverage and cloud adjacency native services, and how you can accelerate time to market for economic gain with the VMware MSP portfolio.
