Do the math, MSPs: your virtual machines are massively over-priced

| July 31, 2023 | Blog, Company, Installer |

What are the characteristics of a commodity product? It’s something that everyone needs. It has a basic function, and it should be available as cheaply as possible.

Bread, milk, electricity: these are all commodity products. In the world of IT in 2023, virtual machines are a commodity too.

Every IT project uses cloud in some way, so it’s puzzling that while VMs are a widely available, tried and tested technology, they have not yet achieved that all-important “cost effective” status. In fact, for the enormous number of MSPs who resell cloud infrastructure, quite the reverse is true.

If you resell VMs from one of the big public cloud brands, they’re 3 or 4 times more expensive than they need to be. It’s like this, but cloud: 

Truth hurts

Sixteen tablets, 200mg, same basic ingredient, 452% more expensive. No wonder you and your customers are feeling, not relieving the pain. Either your clients are paying way more than they should, or your MSP business is taking the hit on its own service margins. 

It doesn’t matter which of the big public clouds you look at. Their virtual machine pricing is almost identical. That isn’t something to be suspicious of, right? Surely it just illustrates that the big players have already reached that lowest common denominator/commodity price point. Of course! 

Well, no. Those big-brand prices are artificially high, and that’s one of the reasons we launched Virtuozzo Hybrid Cloud, to re-set the cost and margin equation for MSPs and their customers.

When you need cloud resources for a customer project – virtualized compute, storage and RAM, some backup and bandwidth – Virtuozzo Hybrid Cloud can easily save 25% for your clients, even when you’re buying on demand. AND that includes a healthy 20% margin built in for you, the MSP.

Check out these comparisons. Then try our cloud calculator to see how it compares for yourself. Then sign up for a free trial, and put Virtuozzo Hybrid Cloud to the test.

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