How VARS and MSPs Can Use Cloud Cost Optimization as a Door Opener

too-many-clouds-logo-social-media-linkedinWe recently chatted with Jazz Padda, Managing Director of ParkMyCloud’s UK partner Too Many Clouds about how resellers, VARs and MSPs can use cloud cost optimization trend in cloud. Below is a transcript of our conversation.

Hi Jazz. Can you tell us about what Too Many Clouds does and what kinds of companies you work with?

Too Many Clouds is a distributor and cloud-based solutions provider. We partner with medium to large enterprise users, predominantly multinational businesses. We also work with large enterprise Value-Added Resellers (VARs) and Managed Service Providers (MSPs) to provide them with cloud-based solutions as well as cost optimization.

When you talk to enterprises, VARs and MSPs, does cloud cost optimization seem to be a concern?

Everyone’s talking about cloud to save money and make their lives simpler – and cost is an important part of that conversation. If someone has automated a certain element of their IT in the cloud, the consensus is that they’ve saved money somewhere, and they’ve made their life maybe one eighth easier. They can spend that time on core projects within the business.

However, the issue that we’re seeing at the moment is, once companies migrate to the cloud – and we’re an advocate of moving infrastructure into the cloud and adopting a hybrid model – costs are spiraling out of control. An end user may think initially that they’re getting a good deal, but because they are not managing their infrastructure correctly, based on capacity planning or the small things like running servers at full capacity that really should be sitting there idle – costs are growing rapidly.

As a technology distributor, how are you approaching this problem?

We offer cost optimization technologies such as ParkMyCloud to our clients and partners, which enables us to be at the forefront of the cost-saving exercise.

Cost optimization gives us a great opportunity to add value to users who are already settled into using AWS or Azure. We’re purely value-driven, so we will only add to an end-user or a partner’s portfolio if we have the capacity to do so, if we have something of value to give to them.

We basically lead from a consultative perspective. We try to understand an end user’s environment and if we have something that will aid their environment that would help them, we speak to them about that product. ParkMyCloud actually ticks the box in 70% of the conversations we have around public cloud spending.

How do your VAR and MSP partners utilize cost optimization technologies?

What that means to our partner/reseller customers is that it changes the conversations they’re having with their potential customers.

Until the recent past, our VAR and MSP partners have been focused on providing solutions for cloud migration. A technical person would have to spend the best part of half a day to figure out how much money someone was going to save by going from on-site to Azure, or Azure to AWS or vice versa, and it was still an estimate.

Now with cost optimization technologies that they have access to through partnerships with ParkMyCloud and Too Many Clouds, partners are able to open conversations with existing cloud users. By simply using a platform like ParkMyCloud for post-migration cost optimization, they can get to the savings figure in a matter of minutes. It’s a bit of a no-brainer for partners. It serves as a door-opener for them.

What about end users?

With the actual savings amounts provided, an end user can now make a decision based on cost savings solutions much more quickly.

Finance teams appreciate the ability to look at a simple report, see how much money is going to be saved, and make a decision based on cost savings alone. That’s quite powerful.

Financial controllers are now more cost-conscious than they were before, because they need to allocate those budgets elsewhere. By bringing the cost optimization element into the conversation, we’re able to get over the hurdle a little bit quicker. It makes it easier for end users to make a decision they are looking to make anyway.

Do you have any predictions about what you think will be valuable to end users or resellers in the next few years?

The next big step we’re going to see is the merging of multiple cloud platforms into one or two very big hybrid cloud environments – AWS, Azure, IBM Softlayer, etc., all crash together as one big pooled resource.

Then it will be about departments within the business cross-charging each other and internal costs being allocated correctly. This could also go down to a granular level, charging by applications being used for certain periods of time, charged within different departments as well. That’s what I predict will be important for resellers to understand about end users in the near future.