Based on recent news bulletins – Amazon has (again) made a major price cut, now making the virtual servers even more cheap (dare i say cheaper than in your own data centre). This makes the industry go completely over the wall, saying that there is “No Money to be Made” of hosting customers data.
My opinion about the situation is, that we do not work in this industry to host other people data – we work here to service their needs and secure solutions that brings value to their business.
Why not embrace the price cut’s as an added benefit, and increase your profits based on this.
The vast majority of VARs and MSPs should never attempt to build their own clouds. That’s like building your own power plant when power is cheap and widely available from multiple service providers.
Instead – focus on your own solutions, make the efficient, valuable and exceptional to service your customers, spend the money and effort on “making things happen” for your customers and end up using the price cuts from the platform providers, as an improved margin lift, for something as simple as providing “raw iron”.
I have seen the abundance of solutions providers out there, who host their service in the Amazon Cloud – and i would assume that they do not (necessarily) pass that savings to the customers, they basically just enjoy the added margin on each instance to facilitate additional growth.
See the new opportunities.