Introducing Virtuozzo Hybrid Cloud: the new high-margin cloud for MSPs

| June 27, 2023 | Blog, Company, Installer |

We’re excited today to announce the launch and general availability of the all-new Virtuozzo Hybrid Cloud!

It’s a new managed cloud for the channel, enabling MSPs to bring a rich range of cloud services to their clients through an easy-to-use web portal. Learn more and find out how to get a free trial...

A new MSP cloud platform

Virtuozzo Hybrid cloud combines IaaS, multi-cloud PaaS, object storage, WordPress as a Service, Database as a Service and more in a cost-effective, high margin platform for MSPs.

We manage and support the infrastructure. You manage the service and your customer. No complexity, no special expertise required, and a radically different commercial model that’s better for MSPs and customers too. What’s not to love?

Resetting the cloud cost equation

We’ve already seen great excitement from the first MSPs to adopt our new cloud. That’s great to hear (and we’re not surprised) because this really does reset the cloud commercial model. It represents a massive change in cloud affordability and profitability compared to hyperscale public cloud, or traditional enterprise platforms like VMware.

MSPs love the cloud margins

We’ve built in 20% margin as standard for MSPs reselling Virtuozzo Hybrid Cloud. MSPs who resell clouds like AWS and Azure typically get low single-digit margins - and given their customer needs to reduce TCO, the cloud infrastructure they include in customer projects is often being resold at cost.

Virtuozzo Hybrid Cloud is designed and priced fairly for resellers and their customers. It’s the most profitable MSP cloud on the market.

Customers love the cloud cost savings

As interest rates and inflation continue to rise, there is no company on Earth that isn’t looking for ways to cut cost. Virtuozzo Hybrid Cloud delivers the core virtualization capabilities that 99% of businesses need, typically at 25% less cost than equivalent services from AWS, Google or Azure.

Everyone loves the simplicity

Skills shortages are a constant challenge for MSPs and customers alike, and while the large public clouds have evolved in capability and scale, they have devolved in terms of simplicity. Virtuozzo Hybrid Cloud simplifies IaaS, PaaS and XaaS.

It’s easy for MSPs to manage clients, deploy projects and handle billing, and the cloud services themselves don’t require an army of highly qualified, expensive experts to understand and deploy.

Why now? The time is right for customers

In 451 Research's most recent Voice of the Enterprise report on cloud and managed services, 73% of companies expect to rely more on managed cloud services over time.

54% said that public cloud IaaS and PaaS was growing in importance, and 40% saw the growing importance of modernizing on-premises infrastructure with hyperconvergence, containerization and self-service.

While services for on-premises environments are still dominant, managed cloud is growing much, much faster. 451 estimates a CAGR of almost 20% for managed cloud services between 2021 and 2026, compared to 8.5% for on-premises.

This illustrates both the enterprise need for hybrid IT, and the huge opportunity that still exists for MSPs to help companies transition workloads to the cloud – especially when those companies are looking to optimize cost at the same time.

The opportunity is real for MSPs

According to Kaseya’s 2023 Global MSP Benchmark survey, cloud is the second fastest growing service area for 48% of MSPs, after security (65%) and just ahead of Business Continuity/Disaster Recovery (47%). Cloud migration is the service most requested by clients in 2023 (22%).

However, 20% of MSPs reported less than 10% gross margin for cloud services, and 43% reported less than 20% gross margin. Related to this, almost 90% of MSPs said that automated, integrated solutions are crucial to the success of their business: it helps them streamline their processes, reduce duplication of effort, and automate repetitive tasks.

Putting it all together…

If enterprise cloud demand is still rising, and they want MSPs to help; and MSPs need to increase profits, while helping customers to cut cost; and both sides of the relationship need more efficient, automated solutions… what if there were an easy way to solve all of those problems at once?

Check out Virtuozzo Hybrid Cloud, ask for more info, or sign up by 31st July 2023 to get free credits for up to 2 months!