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  • Hosting provider maintains the hardware, software and Internet connectivity and network and ongoing supportto host end-user client applications on their servers Are essentially managed servers.Typically offered on a monthly lease basis.
  • Managed Hosting solutions allow customers to focus on their core value, while the service provider handles the daily update and maintenance of the core server functions. Freeing your IT resources to focus on more strategic and value-add business initiatives.You Control:ApplicationsUsersServer Settings for CPU and RAM to support applicationsServer logs Writing CGI and other scripts Managed For You:Administration Tools utilities, control panels, documentation Managed Services data backup, security, upgrades, patches, monitoring Server Software op system, core services, add-ons Server Hardware configurations, monitoring, repair/replacements of components Network routing options, monitoring, support Data Center secure environment, power supply, monitoring
  • There are essentially 3 types of managed hosting solutions available in the market:Shared Hosting, which are pooled resourcesVirtual Private Servers, and Dedicated Severs. The last two are the most commonly used to support IT environments since they provide the ability to upload and manage custom applications.Shared Hosting is typically priced between $4 - $20 per month depending on the service provider and features and tech specs offeredProvides simple hosting solution at an affordable price.Great for developing an online presence or for hosting a company website can support multimedia, blogging, and ecommerce.Virtual Private Server can range in price from $20 up to several hundred dollars based on features and tech specsVirtual Private Server (VPS)Provides an affordable, single-server hosted solution that is logically partitioned on a virtualized server platform. It allows multiple customers to share the expense of hardware and network connections, without sacrificing performance or security. Customers can use it to run websites and many other applications, just as if they were running on a dedicated physical server. VPS Plans are ideal for:Email server – companies use it to run their emailApplication server – companies use it to host applications Database server – companies use to host databases File server – companies use it to store files in a shared or backup location Hosting websites/ecommercePlatform for building and hosting applications ISVs/ASPs/web developers host applications they develop and sell to their SMB customers. This is a growing market for channel sales. Combine multiple VPS accounts for complex solutionsDatabase clustersSeparate web, database, and email serversManaged Private Servers typically start at several hundred dollars up to $1,000 of dollars per month depending on features and tech specsManaged Private Server (MPS)Provides a fully dedicated single-server hosted solution for customers who want the security and performance of a dedicated environment without the costs of managing the hardware in-house. The service provides an enterprise-class server and software to power the most intensive sites and applications with dedicated bandwidth and processing. An MPS plan is designed for users that need his/her own server.MPS Plans are ideal for: Building and serving applications Large Hosted Applications Database Hosting Customer Support Tracking Systems Hosting Multiple Websites (Subhosting) Multimedia Applications Clustered Servers Large Database ServersShared Hosting – With shared hosting, the client’s website exists on a Web server with other client sites. The sitedoes not have dedicated Web server software. The site may also have limited file storage capacity. As such, thisoption works well for sites that do not require advanced functionality (such as large shopping carts, customerdatabases or the ability to share videos). It’s also suitable for sites that will not attract a high number of visitors, orexperience “bursts” of traffic. For many “brochure-type” websites, shared hosting tends to be a suitable and cost effectiveoption.Virtual Private Servers – A Virtual Private Server, or VPS, is the next level up from shared hosting. Here, theclient’s website still shares a hardware platform (Web server) with other client sites. However, the Web serversoftware is dedicated to each site, which gives the reseller more control over the client’s site and the ability tooptimize server performance to meet the client’s website requirements. This option works well for sites that featureadvanced functionality (such as an extensive e-Commerce application or a custom application). VPS is also a goodoption for companies that need to host more than one website on a server. While VPS is more expensive than sharedhosting, it is still more cost-effective than a Managed Private or Fully Dedicated server.Managed Private Servers – This option provides a dedicated hardware and software platform for each client. Thisenables the client to have a high degree of control over their website, or maintain multiple websites on one server. AManaged Private Server provides increased security for data captured on the website (e.g., financial and credit card data).
  • Hosted MicrosoftExchange 2010:- 25GB Starting with 3 mailboxes from $14.00 per monthWe handle the installation, configuration and ongoing system maintenance- No upfront capital expense, long term contract or cancellation fees - Get email anywhere, anytime from Outlook, a web browser or your mobile phoneTeam Collaboration - share calendars, address books, tasks, mobile email and moreHosted Microsoft Sharepoint: Disk space ranging from 200 MB starting at $19.95 per month (retail) to 100 GB for $499.95 (retail) per month SharePoint Hosting Services Includes All Licensing, Software Updates and Management Software and security updates are automatically applied to your service as they become available.ShopsiteeCommerce:3 plan options starting at $28.95 per month- Free Web Design and Marketing Tools for getting your client’s site noticed - Intuitive, Browser-based Shopping Cart Interface for easy site setup and maintenance - Flexible Store Templates, Multiple Themes and Meta Tag Editing - no web design skills Needed! - Powerful Management Tools for Tracking Inventory, Maintain a Catalog and Hosting Images - PAPB/PA-DSS compliant solution helps ensure your transactions are safe and secureChoice of Third Party Payment Gateway ProvidersProfessional Services:Database Administration and Management ServicesFull-range of database services including design, optimization, and database administration. Supported databases include: Oracle, MYSQL, and SQLServer 2008Services Include:- 24x7x365 Database Monitoring- Comprehensive Pre-Optimization Health Check Report- Analysis of All Performance Issues and Application Slowdowns- System Status Monitoring (Up / Down)- Collection of Performance and Resource Metrics- Automatic Threshold Comparison of Collected Metrics- Notification When Potential System Availability, System Performance or System Resource Issues are Discovered- Scan System Log Files Daily- Weekly/Monthly Reports on Case Activity & System Resources- Weekly/Monthly Status Phone Call w/ Your DBA Support Professional- Disc Space, CPU & Memory Usage and Process Monitoring, Resource Utilization & Instance PerformanceWebsite Design ServicesFull-service web design services ranging from a semi-custom option starting at $899 that can be finalized and delivered within a week, to fully custom development design price varies depending on site complexity. We also provide Graphical, content and architecture web site maintenance.Services can include:One-on-One design consultation with a professional Custom design & development Ecommerce application design and integration (optional) Royalty-free images, or submit your own Copywriting support Modifications / maintenance support (optional) Search engine optimization
  • Hosting started off for website and Web applications, it has expanded for more general computing purposes.Many SMBs rely upon Hosting services to support their IT business requirements.
  • Another study conducted by the 451 Group, a leading industry analyst company that covers the Cloud/Hosting market, identified the top 5 motivators for using Cloud computing among companies surveyed to be:Flexibility (50%)Agility (45%)Quicker time to value (42%)Avoidance of CapEx (38%)Cost Reductions (38%)
  • The same 451 Group survey identified the following applications among the most common uses for Cloud/hosting solutions:Web Applications 44% using now, 63% plan to use within next 12 monthsTest and Development 41% using now, 61% plan to use within next 12 monthsCollaboration 30% using now, 42% plan to use within next 12monthsDR/Backup 22% using now, 38% plan to useCRM 26% using now, 32% plan to use
  • Greatest opportunity is among SMB companies with 50 -99 and 100 – 499 employees who are found to use Hosting Infrastructure services the most today. Most use a third party Hosting service provider or combine 3rd party hosting service provider services with in-house solutions.
  • SMBs companies with 50 -99 and 100 – 499 employees stated the most they were likely to host 3rd party or a combination of 3rd party with in-house solutions within the next 12 months.The sweet spot for these services is among the SMBs with 50-99 and 100-499 employees. This is because these companies are less likely to have large internal IT resources.The IDC study found that most companies were using Hosting to support websites and web applications (61%), but nearly 50% were also using hosting to support Internal enterprise applications/functionality (e.g., email, CRM, ERP)
  • Hosting resellersprovide all ongoing support including initial setup, maintenance and assistance with the service as needed.
  • Your required expertise and customer support will depend on the services you plan to provide in addition to Hosting. At a minimum you will need to know how to use the Hosting service providers control panel, cPanel has become a common industry standard control panel offered by most leading Hosting service providers.
  • Basically 3 types of partner programs in the industry:Wholesale resellerSell, Bill, and Support’Highest profit potentialAffiliate or Agent partnerSell onlyCompensated based on recurring commission or one time paymentModified ResellerSell and BillReduced profit potential
  • Reduce Capital Expenses: Hosted applications spare businesses from capital investments in hardware, infrastructure and large sunk payments for perpetual software licensing, significantly lowering the entry barrier for deploying new applications.Reduce IT and Server Management Costs: Hosted solutions free businesses from labor-intensive server administration tasks, such as patch management, installing software upgrades, and dealing with security vulnerabilities. That both decreases operational expenses and opens up time for more strategic, high-return IT activities.Reduce Risk and Achieve a Faster ROI Lower upfront and maintenance costs mean less risk and speedier return on investment for new applications.Rapid Deployment of Solutions Rolling out a traditional on-premise solution usually requires weeks or even months of tedious and costly effort. Hosted solutions, by contrast, require far less set-up and configuration, simplifying and accelerating the application rollout process.
  • Reliability - If a client’s website is unavailable, they will call you, not the Web hosting service provider where the site is actually hosted. Of course, every provider has occasional technical difficulties — the question is how quickly do they resolve the issueSecurity – what security measures are in place? How do they protect your clients data hosted on their servers within their datacenters? Scalability - how many client sites are hosted on one server, if shared; as well as how many servers the provider has, and do they have room, and resources, to grow? Responsiveness – What partner technical support is available, what are the hours 24x7x365, is support available through phone, Chat, email? How are resellers notified of problems, potential problems and planned downtime? Do they offer self-help resources for resellers, such as online FAQs or Wikis, and the ability to interact with other resellers via user groups, forums or conferences to share ideas and best practices. Financial Stability – will the company be around for the long-term? Global Presence – do you have international clients, do you need a service provider that can support your international clients as well? Expertise – do they have a proven track record of performance, have they been around for at least the past 10 years? Reseller Program – What sales and marketing support do they provide to their channel partners? How do they compensate their channel partners? What contracts or commitments are required to become a channel partner?
  • Evaluate your company strengths – what services can you provide that compliment Hosting?Ensure proper business infrastructure – can you support monthly billing? Can you provide technical support to your customers?Select a Hosting Service Provider – which provider offers the services you’re most interested in reselling and offers the most attractive benefits?Which partner program fits your business? Wholesale reseller, Modified Reseller, or Affiliate/Agent model?Advertise and Promote your business – start with your existing client relationships, what additional services can you provide to meet more of their IT business needs?
  • In January 2010, Verio was named Best Hosting Company for 2009 by HostReview.com for the 2nd year in a row. The company was also named “Readers Choice” for 2009 by the Readers of HostReview.Verio was named “Best of SaaS Showplace” by THINKstrategies Inc. for providing SaaS solutions that deliver measurable business results.Verio Executive named a Channel Chief for 2010 by CRN for the company’s commitment and promotion of Channel initiatives.Verio’s parent company – NTT – named the 31st largest company in the world and part of the Global Fortune 500.Verio Executive named one of the Top Women In The Channel for 2010 by CRN for the company’s commitment and promotion of Channel initiatives.
  • NTT is one of the few providers that offers an IP only backbone covering four continents: Asia transpacific to the US US transatlantic to EuropeAustraliaNTTs network is optimized for IP traffic only. Other vendors utilize their network for both voice and IP traffic which can affect performance. Many other hosting providers lease their lines or purchase services from larger upstream vendors so they are subject to performance and reliability issues. NTT owns its own lines and therefore are not subject to these types of issues.

Transcript

  • 1. Dramatically Increase Revenue through Hosting Services
    Discover the market opportunity and what you need to know to
    offer and support these services.
    Janine Soika, Market Leader of Reseller Channel Programs
    December 14, 2010
  • 2. Speaker Bio – Janine Soika
    Janine Soika
    Market Leader of Reseller Channel Programs, Verio Inc.
    Janine Soika
    Janine Soika has over 15 years experience in B2B marketing, with more than 10 years managing Channel Partner programs for High-Tech Fortune 500 companies. Ms. Soika has held Marketing leadership positions with IBM, The Equitable Group, Arrow Electronics, Level 3 Communications, and Epsilon Data Systems. She also served as a marketing consultant for Wells Fargo Bank in addition to smaller start up organizations. In 2009 Janine was recognized by CRN Magazine as one of the “Top 100 Most Powerful Women of the Channel.” She holds an MBA from Pace University and resides in Denver, Colorado with her husband, Tom and their two boys, Michael (8) and Ryan (5).
  • 3. Agenda
    • Hosting Services overview
    • 4. Market opportunity
    • 5. What it takes to become a hosting reseller
    • 6. How to position and sell them
    • 7. How to select a Hosting Service Provider
    • 8. How to get started
  • Hosting Services Overview - What are Hosting Services?
    Hosting services are managed servers provided by a Hosting Service Company:
    • Provides the technical infrastructure and ongoing support
    • 9. Typically sold on a monthly basis at a fixed monthly price
    • 10. Clients of Hosting services don’t have to worry about the burden of maintaining the hosting server, operating system, supporting server applications or network
  • Technology Stack
    With Managed Computing You Maintain Control
    Hosting Company Manages
  • 11. Types of Hosting Services
    Increasing website security, requirements, scale, flexibility and cost
  • 12. Complimentary Services
    SaaS
    • Hosted Microsoft Exchange
    • 13. Hosted Microsoft SharePoint
    • 14. eCommerce
    Professional Services
    • Database Administration and Management Services
    • 15. Website Design and Management Servicesent Services
  • Profitable andEasy to Sell
    • Hosting plans are easy to sell, manage, and support
    • 16. Provision in minutes
    • 17. No contracts, pay month to month
    • 18. Earn attractive compounded monthly recurring revenue for life of the account
    • 19. Combine with your own value-added services to increase profits
    • 20. Serve more of your customers’ IT needs – increase loyalty/relationships
  • Market Opportunity
  • 21. Uses for Hosting
    Hosting infrastructure services: not just Web Hosting anymore
    Web sites and associated applications
    Internal enterprise applications
    General-purpose IT
    SaaS enablement and SaaS applications
  • 22. Why End-Customers use Hosting
    Source: The 451 Group Cloud Adoption Survey 2010
    N=120 Sample Size Not Statistically Significant
    64.5% of Respondents below $250M in Revenue
  • 23. Hosting Adoption by Workload
    Source: The 451 Group Cloud Adoption Survey 2010
    N=120 Sample Size Not Statistically Significant
    64.5% of Respondents below $250M in Revenue
  • 24. Adoption by Company Size
    Q. How does your organization host your public Web site and/or internal Web-based applications infrastructure?
    Base = respondents who currently have or plan to have public Web sites and/or internal Web/IP-based applications infrastructure
    Source: IDC's U.S. WAN Manager Survey, 2009
  • 25. Planned Use by Company Size
    Q. Will your organization hosting be in-house, outsourced, or a combination of both in the next 12 months?
    Base = respondents who currently have or plan to have public Web sites and/or internal Web/IP-based applications infrastructure
    Source: IDC's U.S. WAN Manager Survey, 2009
  • 26. Market Forecast Growth Rate
    U.S. Hosting Infrastructure Services Forecast
    6.9% Growth
    6.8% Growth
    6.7% Growth
    6.7% Growth
    6.5% Growth
    Source: IDC, May 2010
  • 27. What it Takes to Become a Hosting Service Provider
  • 28. Overview
    Hosting Reseller Defined
    Hosting resellers purchase Hosting at wholesale discounts from a hosting service provider such as Verio.
    Resellers typically combine other services with hosting and resell them to their clients at a profit
    Hosting resellers maintain the client relationship, bill, and support.
    In exchange for these services, the client pays the Hosting Reseller a monthly fee.
    Purchases Services
    Resells, bills, and supports
    Hosting Provider
    Hosting Reseller
    End-Customer
  • 29. Reseller’s Role
    • Advise clients on appropriate Hosting solution to meet their specific business requirements
    • 30. Provide additional value-add services:
    • 31. Website Design
    • 32. Website Content Management
    • 33. Email Services
    • 34. Marketing Services (SEM, SEO, PPC, Social Media)
    • 35. Database services
    • 36. SaaS applications
  • Technical Expertise
    Depending on the services you plan to provide, you may need the following expertise:
    • Basic website design (HTML and CSS at the least)
    • 37. Website application integration for eCommerce, merchant accounts , SSL certificates
    • 38. Internet protocols (e.g., HTTP, HTTPS, FTP)
    • 39. Understanding of domain names and the Domain Name System (DNS) – domain name registration and transfer
    • 40. Email services and how e-mail works
    • 41. Specific commercial application knowledge
    • 42. Database set up and management
    • 43. Leading Operating Systems: Windows, Linux or Unix, Solaris, etc.
  • Types of Programs
    • Wholesale Reseller (Verio’s Via3 partner program)
    • 44. Sells, bills and supports
    • 45. Purchases hosting services at wholesale prices
    • 46. Sets Profit Margin
    Hosting Purchase Price + Additional Services = End-Customer Price
    Profit Margin = End Customer Price – Purchase Price/Operating Costs
    Modified Reseller Program (Verio’s Via2 partner program)
    • Sells and Bills
    • 47. Hosting Service Provider supports end-customer
    • 48. Reseller purchases Hosting services at reduced discount rate
    • 49. Agent/Referral Reseller (Verio’s Via1 partner program)
    • 50. Sells or refers business to Hosting Service Provider
    • 51. Receives commission or one time payment
  • How to Position & Sell
  • 52. Customer Benefits
    Reduce Capital Expenses – Free Up Cash Flow
    • No hardware and network infrastructure costs
    • 53. No perpetual software licensing expenses
    • 54. Reduces barriers for deploying new applications
    • 55. Predictable monthly expenses
    Reduce IT and Server Management Costs
    • No patch management
    • 56. No installing software upgrades
    • 57. No dealing with security vulnerabilities or network uptime
    • 58. Decreases operational expenses
    • 59. Provides more time and resources to focus on strategic, high-return IT initiatives
    Reduce Risk – Faster ROI
    • Fewer upfront costs = less financial risk + faster ROI for new applications
    Rapid Deployment of Solutions
  • 60. How to Select A Hosting Service Provider
  • 61. How to Select a Hosting Provider
    • Reliability – how often do they experience unplanned server outages and how quickly are they resolved?
    • 62. Security - what security measures does the provider take to ensure the integrity of your clients’ applications, websites and data, how do their measures compare to industry standards.
    • 63. Scalability – infrastructure built for performance and scalability
    • 64. Responsiveness –what are the technical support hours for resellers, and are there multiple ways for resellers to request support?
    • 65. Financial Stability – is the company solvent? You want to make sure you build your business upon a reliable service provider that will be around for the long-term.
    • 66. Global Presence – if you have customers outside of the US, you’ll want to find a service provider that can provide hosting services to these clients
    • 67. Expertise – how long has the service provider been in business? Do they have a proven track record of performance?
    • 68. Reseller Program –make sure the Hosting service provider offers a reseller program and that their compensation and support to channel partners is competitive within the industry.
  • How to Get Started
  • 69. How to Get Started
    Evaluate your company strengths
    Ensure you have the appropriate business infrastructure
    Select a Hosting Service Provider
    Select the right partner program for your company
    Advertise and Promote your business
  • 70. Verio Company Overview
    Verio is the Leading Global Provider of Hosted Computing Solutions for the SMB Market
    Verio is Owned by NTT
    • The world’s 2nd Largest Telecommunications Company
    • 73. The 31st Largest Company in the World
    • 74. As ranked by the global Fortune 500, July 2010
    • 75. Proven Track Record of Performance and Financial Strength
    2010 Top Women
    In The Channel
  • 76. VerioCompany Overview -Global Network
    Global Market Coverage via NTT’s Reliable/Scalable Global IP Network and Data Centers
    Co-located in Many of the World’s Most Robust Data Centers
    Data Centers Located on Multiple Continents - Asia, Europe, Australia, North America and South America
    State-of-the-art, Maximum Security SAS 70 Data Centers
  • 77. Interested in Learning More About Verio’s Partner Programs?:
    Contact Brandon Miles:
    Phone: 561-999-8532
    bmiles@contractor.verio.net
    or visit viaverio.com
  • 78. QUESTIONS?