In today’s rapidly evolving digital landscape, cloud services have become the backbone of modern businesses. Cloud resellers play a crucial role in making these services accessible to end-customers, partnering with major cloud providers like AWS, Google, and Azure. With the emergence of local/regional clouds as viable alternatives to the HyperScalers in practically every geography, resellers now enjoy a wider business footprint by way of partnering with cloud providers at the country level. Service providers, on the other hand, now have the opportunity to personalise their offerings better, and utilise resellers are high-volume-high-value channels to selling their cloud.
However, the traditional reseller model has its challenges, including narrow profit margins and customer retention struggles.
In this blog article, we will explore how Apiculus can enable cloud resellers acquire customers and drive business with its white-label cloud platform, offering a win-win situation for both resellers and cloud partners.
The Service Provider’s Perspective
The reseller ecosystem is a valuable one from the service provider’s perspective. Resellers can not only help with customer acquisition, but also help deliver personalised experiences, and accelerate the cloud capacity utilisation.
This also results in a pinwheel effect, wherein the success of a cloud brings in more resellers and starts moving towards creating a network effect.
Current Challenges to Reseller Channels
Cloud resellers face multiple hurdles in their business model. While they collaborate with HyperScalers, the margins they receive are often limited to a mere 5-10%. This limited profitability makes it challenging for resellers to sustain and grow their businesses.
Moreover, there is a constant struggle to retain customers as switching from one reseller to another is as simple as offering a deeper discount.
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The absence of a customer moat further exacerbates the situation. Customers can easily move their account linkage from one reseller to another, requiring no complex migration process. This lack of stickiness makes customer retention a significant concern for resellers.
Lastly, on the technology front, current solutions do not allow resellers to further modify catalogues, prices etc. for customer acquisition by incorporating customer feedback. This inability limits them from using the available tools to the best of their capabilities, and instead, tend to restrict resellers to being another listing on a partner marketplace.
Apiculus: One Factory, Many Shops
Apiculus flips this around by providing service providers and resellers with a white-label(able) cloud platform. Using the Apiculus stack, service providers can set up their infrastructural blueprints, and set up multiple front fascia as their own brand(s) or co-branded channels. In other words, a service provider can set up a single ‘factory’ and offer their cloud through multiple ‘shops’ which could be their own or partner-led.
This brings the flexibility to harness the power of resellers as valuable channel partners to drive cloud sales, thereby bringing in business opportunity for everyone in the channel.
Benefits for Resellers
- White-Label Cloud Portal: Resellers can go with their own white-label cloud portal with full control on cataloguing, pricing and customer relationships. This allows them to have complete visibility into their brand identity and customer experience.
- Increased Profit Margins: With the flexibility to set their own pricing, resellers can now make substantial profits, typically in the range of 20-30%, on their cloud business, which ends up significantly higher than their margin potential with reselling just the HyperScalers.
- Enhanced Customer Retention: Resellers, using Apiculus, can offer a more personalised onboarding and support experience to the customers while escalating any L2/L3 support to the service provider.
Conclusion
Apiculus‘ white-label cloud platform presents an excellent means for cloud resellers who wish to overcome the challenges posed by the traditional reseller model. By empowering resellers with their own branded cloud portals and providing unmatched benefits to end-customers, Apiculus creates a win-win situation for all stakeholders involved.
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Resellers can now enjoy higher margins, improved customer retention, and the potential for business growth. Cloud partners, on the other hand, can scale their cloud capacity utilisation, achieve economies of scale faster, and expand their market share in their country.
Embracing Apiculus is a strategic move towards building a more resilient and competitive cloud ecosystem.
Kshitish is a ‘startup expert’ and has been involved with early stage startups, seeing various phases of growth, for more than 15 years. A specialist in Product Management, User Experience, Technology and Product Growth/Strategy, Kshitish is a seasoned entrepreneur with deep expertise in building enterprise products and horizontal/vertical SaaS. Kshitish did his PG in Product Design from NID, Ahmedabad.