eFolder Lunch, Three Secrets to Pricing and Packaging Your BDR Service
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eFolder Lunch, Three Secrets to Pricing and Packaging Your BDR Service
- 1. Three Secrets to Pricing and Packaging Your BDR Service Ted Hulsy VP of Marketing, eFolder 678-888-0700 x151 ehulsy@efolder.net
- 2. From Devastation… 2 © 2012 eFolder, Inc. All Right Reserved.
- 3. From Devastation… to Domination 3 © 2012 eFolder, Inc. All Right Reserved.
- 4. My Promise: You and Your Profits • Give you real life partner pricing examples • Show you how to get 75% recurring gross margins • Help you to get started 4 © 2012 eFolder, Inc. All Right Reserved.
- 5. Who is Ted? http://inmaps.linkedinlabs.com 5 © 2012 eFolder, Inc. All Right Reserved.
- 6. Managed Service Packaging Challenge “The biggest challenge in managed services today is the trap of selling point solutions. We go for client relationships Dave Watts President, CEO, NetFusi where we own and deliver a on complete managed services bundle, where business continuity is just a piece of the overall solution.” 6 © 2012 eFolder, Inc. All Right Reserved.
- 7. Killer Managed Services Bundle 24x7 Help desk Managed business continuity Managed network LAN/WAN/firewall/web filtering One price per client per Line of business month, based upon apps size/users/devices Managed security AV/Spy/FW Managed desktop Managed Server 7 © 2012 eFolder, Inc. All Right Reserved.
- 8. Bundles Payoff “The client sees a total solution, not line items, not nickels and dimes. And we can build in everything we know the client needs. Dave Watts President, CEO, NetFusion We get the benefits of standardization and expertise, while delivering a higher level of service to the client.” 8 © 2012 eFolder, Inc. All Right Reserved.
- 9. BDR and Winning New Clients “We are very focused on new client acquisition and we see BDR as a wedge service that can get us into new accounts that we can grow into a larger relationships. Lyf Wildenberg President/Co-founder Mytech Partners Our BDR service needs to be rock solid as a standalone offering we can offer to any SMB.” 9 © 2012 eFolder, Inc. All Right Reserved.
- 10. BDR Service Line • Bundle Model – Targets 50-70% recurring gross margin – Incorporates appliance cost into bundle – Flat $750 setup fee BDR 1-125 BDR 2-250 BDR 3-500 BDR 4-1500 BDR 6-2000 Monthly Retail Price $300 $450 $600 $867 $1,125 Included # Servers 1 2 3 4 6 Included Protected GB 125 250 500 1500 2000 10 © 2012 eFolder, Inc. All Right Reserved.
- 11. Simplicity Payoff “We try to think like a vendor in terms of the simplicity and packaging of our offering. Lyf Wildenberg Simplicity allows us to sell President/Co-founder Mytech Partners more easily and penetrate new accounts.” 11 © 2012 eFolder, Inc. All Right Reserved.
- 12. Labor Cost Challenge “We see too many MSPs leaving money on the table. They over commit in their Erik Thorsell pricing bundles and get President/Founder Success Computer creamed on their labor costs Consulting down the road.” 12 © 2012 eFolder, Inc. All Right Reserved.
- 13. 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
- 14. 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
- 15. SCC BDR Sales Strategy 1. Understand client needs in their terms 2. Unbundle the offering and build on it 3. Protect the margin (minimum 66% per deal, down to 50% with manager approval)
- 16. 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!
- 17. 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
- 18. eFolder BDR eFolder BDR eFolder Storage Cloud Image backup Production Disaster recovery options BDR appliance servers 1. Download On-site virtualization 2. Disk shipment eFolder 3. Emergency in the cloud Continuity Cloud virtualization and recovery Users 18 © 2012 eFolder, Inc. All Rights Reserved.
- 19. Partner Pricing Please call eFolder for partner wholesale pricing details: 800-352-0248 www.efolder.net/join 19 © 2012 eFolder, Inc. All Rights Reserved.
- 20. 2. Unbundle and Build
- 21. 2. Unbundle and Build
- 22. 3. Protect Margin • Start with the end margin in mind • Price based on value • No assumptions about competitive pricing • Avoid all-you-can-eat
- 23. Profit Payoff “BDR is our most profitable managed service offering and eFolder is our key partner to help us deliver a highly reliable and predictably Erik Thorsell President/Founder profitable service offering.” Success Computer Consulting 23 © 2012 eFolder, Inc. All Right Reserved.
- 24. eFolder cloud data protection services Image Replication and Storage Local Storage and AppAssure Core eFolder AppAssure Cloud Image Backup BDR Appliance On-site Virtualization eFolder ShadowProtect BDR File / folder Backup eFolder Backup Cloud Recovery as a Service eFolder Continuity Cloud 24 STRICTLY CONFIDENTIAL – NOT FOR REDISTRIBUTION © 2012 eFolder, Inc. All Right Reserved.
- 25. eFolder cloud security services Spam Quarantine Admin Console Users Mail Server Third Parties Outbound eFolder Outbound Inbound Inbound Security Cloud eFolder Email Security Anti-virus Anti-spam 25 STRICTLY CONFIDENTIAL – NOT FOR REDISTRIBUTION © 2012 eFolder, Inc. All Right Reserved.
- 26. Join eFolder Gold Platinum eFolder BDR eFolder Backup eFolder Email Security eFolder Exchange Archiving eFolder BDR Rescue Program Partner branding Wholesale monthly billing Made in America Support Partner Center Portal Named Account Manager Enrollment Fee Rebate Special pricing, eFolder Backup Pooled storage, eFolder BDR $500 $1000 Enrollment Fee 26 © 2012 eFolder, Inc. All Right Reserved.
- 27. eFolder Competitive Advantages • Leverage the power of the cloud Adapt • Manage the migration from on-premises to cloud services • Your own service offerings Differentiate • Your own pricing • Your own branding • Predictable, monthly revenue streams Thrive • Low operating costs • Consistent margins and cash flow 27 © 2012 eFolder, Inc. All Rights Reserved.
- 28. Q&A
- 29. Appendix
- 30. Deployment Scenario: Build Your Own BDR Build Your Own BDR Key software tools eFolder Image backup Storage Cloud Third party server Production servers 30 © 2012 eFolder, Inc. All Rights Reserved.
- 31. Deployment Scenario: Cross-site Replication Client Location 1 Image backup Production BDR appliance servers On-site virtualization eFolder Storage Cloud Image replication Client Location 2 Image backup Production BDR appliance servers On-site virtualization 31 © 2012 eFolder, Inc. All Rights Reserved.
- 32. Deployment Scenario: Many-to-one Replication Client 1 Image replication Production BDR appliance servers On-site virtualization Client 2 Partner Private Image replication Cloud Production BDR appliance High capacity BDR servers On-site virtualization Client 3 Image replication Production BDR appliance servers On-site virtualization 32 © 2012 eFolder, Inc. All Rights Reserved.
- 33. eFolder BDR Competitive Advantages Field upgradeable BDR appliances The latest software version, guaranteed Silent data corruption prevention ConnectWise PSA integration Exchange granular recovery 33 © 2012 eFolder, Inc. All Rights Reserved.
- 34. eFolder Continuity Cloud Customer Site or Temporary Site Publicly Available Services (HTTP(S), SMTP, POP, XML/RPC) Private IPsec Virtual Firewall Firewall IPsec Tunnel LAN Internet PPTP Tunnel Traveling VPN Passthrough High Performance Computers Private Storage Cloud Continuity Cloud Compute Node Continuity Cloud Compute Node RDP Management Powered by Hyper-V, VirtualBox, and Powered by Hyper-V, VirtualBox, and Windows 2008 R2 Datacenter Edition Windows 2008 R2 Datacenter Edition 34 © 2012 eFolder, Inc. All Right Reserved.
- 35. Proactive Data Integrity Checks Decryption and Transmission via Encrypted Verification Verification Network Tunnel over Public Internet and Reassembly Encrypted Transmission Your Data, Your Encrypted Data Cryptographically + Checksums Verified + Digital Signatures Data Verification and Reassembly during Download Data Protection and Duplication during Upload Encryption Encrypted Transmission via Encrypted Verification Transmission and Duplication Network Tunnel over Public Internet Your Data Your Encrypted Data + Checksums + Digital Signatures 35 © 2012 eFolder, Inc. All Right Reserved.
- 36. Contact Us Phone: 800-352-0248 Email: info@efolder.net Web: efolder.net Blog: efolder.net/blog/ Twitter: twitter.com/eFolder 36 © 2011 eFolder, Inc. All Right Reserved.
Editor's Notes
- 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.