This diagram provides a simple overview of the main functions of an eFolder BDR installation.First, the imaging software running on the production servers captures an initial image of the server, along with incremental image backups, and stores them on the eFolder BDR.The eFolder BDR appliance acts both as a storage server and as a standby server, in the event the production server fails. The eFolder BDR, leveraging virtualization technology, can bring up the image of the downed server and operate just like production server. Since both the data and complete server configuration is backed up, this on-site recovery can happen in minutes, not hours or days.To deliver additional protection, eFolder backs up the server images daily to the eFolder Storage Cloud, providing cloud based protection from on-site disasters. The client or partner can recover the server images from the cloud, via a download or shipment of a hard drive with the server images.Or, partners may elect to recover the servers in the cloud with the eFolder Continuity Cloud. This approach provides the same benefits of on-site virtualization, but instead leverages the eFolder Continuity Cloud.
Here’s the eFolder pricing worksheet that our salesperson used for the deal we signed this morning…Show one-time cost and monthly cost
Here’s a clip from our managed service proposal, which includes the Advantage Point Standby Server.You can see we actually MARKED UP the hardware and made margin on it, too… and then we also more than tripled our cost on monthly items.Client is a small organization. Single server, just about 10 users. Signed for $450/month.Now, when I mention adding options:Quarterly virtualization test – charge by the hourQuarterly restore / recovery test – charge by the hourDisaster recovery planning – a BDR alone is NOT a disaster recovery plan – it is only technology – we use the BDR sale as a springboard to talking about development of a disaster recovery planBDRs can “pull through” more work! Don’t leave it on the table. Our clients expect us to sell this to them…and we do it by providing value, not a product.
I already talked about pricing based on value…How much does downtime cost? In money? In lost opportunity cost?These conversations are NOT baloney. Network outages, data loss, disasters cost real money to real businesses. It’s not just theoretical. Think about what clients have had to pay you to “save their bacon” when they didn’t have adequate protection in place! What if they could pay the same, but on a predictable monthly schedule, to AVOID those problems. You are providing value.Secondly, if you are worried about how your competitors are pricing BDR’s, you’re missing the point. If you’re providing value and great service, your clients are usually not talking to anyone else.And really, are all BDRs the same? We don’t think so. We are in the process of replacing all of our old Zenith BDR’s with eFolder BDR’s. Remember, we own all those Zenith BDR’s, and their value is on our balance sheet as a fixed asset. It took some guts to write all that off – to essentially say that those assets are worthless… but we felt we could no longer sell that brand with a clear conscience…because we weren’t sure we could keep our promises to our clients. So, if someone is selling a lesser product…or is selling an unproven product…or is selling some “cloud-based” backup option…is that really the same thing? We shouldn’t let our clients see these things as equal – they’re not. And that thinking starts with US….we must recognize that some vendor partners are better than others, and allow us to deliver a better experience to clients. So, if a client has a quote for a BDR that’s half the cost, my guess is that they’re selling a “lesser” model or brand…or that they don’t have expertise to deliver real value. Sure, it costs less now…but how well will the recovery work?This strategy for pricing, by the way, is the same for us with any HaaS/SaaS offering. We use it for security appliances, BDRs, antivirus licensing, too.Finally, and this is unpopular advice… but my experience is that we managed service providers are great technology people, but we make rotten actuaries. If I wanted to be an actuary, I would have stayed at Ameriprise! Take the risk out of your pricing. Charge for the value you bring. Just a thought…
Now for a few comments on our various service offerings. The eFolderAppAssure Cloud service is our immediate and biggest joint business opportunity. Developed by eFolder and AppAssure together over the past nine months, this service adds cloud replication and cloud recovery to the power of AppAssure software. This service delivers an end-to-end solution to SMBs and the partners serving this market.eFolderShadowProtect BDR has been shipping for nearly two years and combines bare-metal backup software, a local appliance for storage and server virtualization, and the power of the eFolder Cloud.eFolder Backup is the company’s first offering and supports anytime, anywhere cloud backup for business-class endpoints.And lastly, the eFolder Continuity Cloud delivers our partners the ability to recover server images or files to an ondemand compute node in the eFolder Cloud, enabling them to deliver business continuity services to their clients.
Leveraging the eFolder Security Cloud, eFolder Email Security delivers comprehensive inbound and outbound protection from spam, viruses, spyware, and phishing attacks, while ensuring email visibility and control for administrators and easy-to-use message quarantine and dynamic, per-user filtering for employees. Delivered as a wholesale, per user per month service, eFolder Email Security has the rich provisioning, reporting, and management capabilities required by managed service providers.
[Ted will close out the last two slides, before formal Q&A]eFolder helps partners adapt to a fast changing technology landscape. Partners can leverage the power of the cloud, while managing the natural migration of infrastructure from on-premises to cloud-based deployments.With eFolder’s unique business model, partners control the client relationship. eFolder allows partners build unique and differentiated offerings, with your own service levels, pricing, and branding.eFolder partners create thriving businesses based upon managed services that generate predictable, monthly recurring revenue. Partners are able to keep their operating costs low through reliable service performance, automation, and integration with their PSA systems. And the result is consistent ongoing profitability.
eFolder BDR is flexible.Partners may “build their own” BDR by procuring their own brand of hardware and licensing the key software assets from eFolder to craft their own solution. Overall, the economics of the solution will be similar. The partner will need to invest more labor in crafting their own solution, however, this permits the partner to leverage their own preferred brand of hardware.
eFolder BDR flexibility extends to replication.Partners can replicate images from one eFolder BDR location to another, giving the organization a hot standby capability. In the event of a site-wide disaster or complete loss of connectivity to a location, the replicated images can be brought up quickly with on-site virtualization in the additional location.
eFolder BDR can allow partners to provide even higher levels of business continuity to their growing client base.The replication capability can also be leveraged by partners to deliver fast RTO service level agreements to clients. Partners can provision a large, high capacity BDR in their own data center and replication multiple client BDRs to this location, allowing the partner to virtualize and recover any of the client servers in their own private cloud environment.
eFolder BDR is superior to many different BDR options on the market.Unlike Zenith Infotechand Datto, eFolder BDR deployments are field upgradeable. eFolder guarantees availability for the latest version of StorageCraft software tools; you will never find yourself stuck in a back rev scenario.eFolder’s silent data corruption prevention technology sets its cloud infrastructure apart from the competition. You get peace of mind, knowing your backed up data is safe from corruption.ConnectWise PSA integration saves partners countless hours on service and support. Automation, efficiency, and better labor utilization are all key to increasing managed services profits.Lastly, granular file recovery is essential to helping clients quickly recover individual files or Exchange items during those everyday disasters.
If eFolder sounds right for you, contact us today. Qualifying VARs, solution providers, and MSPs can try any eFolder service at no cost.Thank you for joining us.
eFolder Lunch, Three Secrets to Pricing and Packaging Your BDR Service
Three Secrets to Pricing andPackaging Your BDR Service Ted Hulsy VP of Marketing, eFolder 678-888-0700 x151 firstname.lastname@example.org
Success Computer Consulting• President of Success Computer Consulting – www.sccnet.com – Minneapolis, Minnesota – In business since 1992 – 35 people, 22 engineers/technicians – HTG – member (six years), facilitator (four years)• eFolder Partner for since 2006
SCC’s BDR Managed Service Offering• 113 managed service clients – 71 BDRs in production (63% of MSP clients) – Protecting 327 servers and over 4,500 users – Over 90% of new clients get a BDR• BDR gross margin in 2011 = 75.7% – In other words, cost = 24.3% of the selling price – Our most profitable offering
SCC BDR Sales Strategy1. Understand client needs in their terms2. Unbundle the offering and build on it3. Protect the margin (minimum 66% per deal, down to 50% with manager approval)
1. Understand Needs in Their Terms• Ask clients to explain their expectations• Ask them to quantify tolerable downtime by key application/function• Ask them to quantify cost-per-hour of downtime• Don’t sell BDR features/performance specs; respond to the client’s needs directly!
2. Unbundle and Build• Own the equipment right away, and have the client pay for it• Give clients ultimate flexibility• Add periodic services that clients will pay for – testing, DR drills, reporting