Introduction: The Shift from CapEx to AppEX
For Cloud Service Providers (CSPs) managing massive, multi-tenant cloud infrastructure, the legacy hardware load balancer is a cost-center and a bottleneck. The software-defined, elastic architecture of VMware Avi Load Balancer (formerly NSX Advanced Load Balancer) transforms this cost-center into a revenue engine.
Avi’s unique capabilities—Centralized Control, Elastic Scale, Multi-Tenancy, and deep Application Analytics—are perfectly suited for the Cloud Service Provider (CSP) Recurring-Revenue, Transactional, and Consumption-based Model. The key to monetization is moving beyond simple feature bundling and selling outcomes.
Here is the CSP’s playbook for monetizing VMware Avi Load Balancer.
1. Consumption-Based Tiers: Selling Elasticity, Not Appliances
The most impactful monetization strategy leverages Avi’s core benefit: elasticity. Instead of charging a fixed fee for a black box, charge based on what the customer consumes or needs to secure.
| Monetization Model | Avi Feature | RTM Pricing Metric |
| Basic Load Balancing | Local L4/L7 Load Balancing, Health Checks | Per Virtual Service (VS) or Per Mbps/Gbps of Throughput |
| Elastic Bursting | Auto-Scale/Auto-Heal of Service Engines (SEs) | Hourly/Daily Burst Charge (e.g., $X per additional SE spun up for peak load) |
| Capacity Reserve | Reserved SE Capacity (Active/Standby or Active/Active) | Fixed Monthly Tier based on guaranteed maximum capacity (e.g., Small, Medium, Large) |
| Global/DRaaS | Global Server Load Balancing (GSLB) | Premium Add-on or Per-Site GSLB Management Fee |
Key Takeaway: The CSP should use a Service Unit (SU) or Capacity-based subscription license from VMware/Broadcom and translate that into granular, utility-style pricing for their customers.
2. Security as a Premium Service (WAF/DDoS)
Avi includes a powerful, integrated Web Application Firewall (WAF), DDoS protection, and Bot Management. These should be monetized as distinct, high-value security services—not as a free load balancer feature.
- Managed WAF Service: Offer the WAF as a premium security tier.
- Tiered Pricing: Basic (OWASP Top 10 protection), Advanced (Custom rules, Learning Mode/Positive Security Model), and Pro (Managed, 24/7 Security Operations).
- Metric: Charge Per Protected Application or Per WAF Rule Set.
- DDoS Protection & Rate Limiting: Charge an add-on fee for activating L3, L4, and L7 DDoS protection policies and advanced rate-limiting controls. This is valuable for high-stakes applications.
- Security Analytics: Bundle security insights and automated threat updates (available with the Enterprise with Cloud Services Edition) into a “Security Insights” monthly fee.
3. Application Visibility and Analytics (The Operational Premium)
Avi’s built-in, real-time analytics provide unprecedented visibility into application health, latency, logs, and end-user experience. This visibility saves DevOps and AppOps teams countless hours in troubleshooting and is a strong monetization opportunity.
- Self-Service Analytics Portal: Charge a modest monthly fee for access to the Avi Controller’s full, searchable application logs, health scores, and client/server transaction timing dashboards.
- SLA Premium: Tie the application analytics to an enhanced Service Level Agreement (SLA). The CSP can offer an “Accelerated MTTR (Mean Time to Resolution) SLA” at a premium because they have the necessary deep telemetry from Avi to troubleshoot issues faster.
- Consultative Services: Offer Application Optimization Consulting based on Avi’s data—helping customers fine-tune application tiers, identify bottlenecks, and optimize load balancing policies.
4. Cloud-Native & Multi-Cloud Enablement
As applications shift to containers, the CSP can use Avi’s capabilities to charge for modern application services.
- Kubernetes Ingress-as-a-Service: Charge a monthly fee Per Kubernetes Cluster or Per Ingress/Gateway API Object managed by the Avi Controller. This provides a clear, enterprise-grade L4-L7 service for their containerized workloads.
- Multi-Cloud Brokerage: If the CSP manages a customer’s deployment across their private cloud (VCF) and a public cloud (AWS, Azure, GCP), use Avi’s unified control plane to manage the entire application deployment. Charge a Multi-Cloud Management Uplift or Cross-Cloud GSLB Fee.
5.Pricing Matrix: Per Virtual Service (VS) Consumption Model
Here is a proposed pricing matrix based on the “Per Virtual Service (VS)” model, which is clean, easy for customers to understand, and scales directly with application complexity and security needs.
This model uses a base charge for the core load balancing function and adds tiers for advanced security and performance, directly leveraging VMware Avi’s features.
| Service Tier | Core Features Included | Pricing Metric | Estimated Monthly Rate (Example) | Monetization Driver |
| I. Standard L4/L7 | L4/L7 Load Balancing, Basic Health Checks, Standard SSL Termination, Basic Logging & Monitoring. | Per VS / Per Month | $50 – $75 | Core Load Balancing |
| II. Secure L7 (WAF) | Includes Standard L4/L7 Features PLUS: Integrated Web Application Firewall (WAF) (OWASP Top 10), L7 DDoS Protection, Custom Security Policies. | Per VS / Per Month | $150 – $250 | Security as a Service |
| III. Global & Advanced | Includes Secure L7 Features PLUS: Global Server Load Balancing (GSLB) for Disaster Recovery, Application Analytics Portal Access, Advanced Bot Management, Higher Throughput/Connection Guarantees. | Per VS / Per Month | $350 – $500 | Availability & Visibility Premium |
| IV. Elastic Burst (Add-on) | Automated provisioning and de-provisioning of additional Avi Service Engines (SEs) to handle unexpected traffic spikes. | Per Burst Hour / Per SE | $5 – $15 / hour | Elasticity & Scale |
Key Considerations for Implementation:
- Definition of a “Virtual Service (VS)”: Clearly define a VS as a single entry point (e.g., FQDN/IP:Port combination) for an application. This is the simplest unit for billing.
- Bandwidth Floors/Ceilings: While the primary metric is Per VS, you may want to set soft limits on the amount of guaranteed throughput (Mbps) or connections per second (CPS) for each tier. High-traffic customers may require a custom quote.
- Analytics Access: Monetize the powerful analytics. Tier I may only get basic health alerts, Tier II gets real-time logs, and Tier III gets full access to the Avi Controller’s rich performance dashboards.
- License Model Mapping: Ensure your CSP’s internal cost model (based on VMware’s core/capacity license) is correctly calculated to maintain margin across these external customer tiers. The high-value tiers (II and III) should carry the highest margin.
Summary: Selling Cloud-Like Agility
For CSPs, monetizing Avi Load Balancer is about selling the agility, automation, and security of a modern, cloud-like Application Delivery Controller (ADC). By translating Avi’s technical features (elastic scale, WAF, analytics) into distinct, outcome-based service tiers, the CSP maximizes recurring revenue and solidifies its position as a strategic cloud partner.
