The AwesomeCloud team often receives a variety of questions related to describing how white label cloud services work and how they differ from traditional cloud services. The goal of this blog is to help you understand why white label clouds are available and what purpose they service. After reading this blog, you’ll be in a better position to decide whether offering cloud services is a good fit for your managed services business.
What is a White Label Product?
Whenever a business offers a white label service (cloud or otherwise), they’re typically offering a product or a service that can be easily rebranded by another business, who then resells the product (typically along with managed services, consulting or branding) to an end-user.
You can find examples of white label products all around you. Let’s use automobiles as a starting point. In 1995, Mitsubishi sold the Eclipse® and Eagle sold the Talon®. While each product had a unique name, brand positioning, and marketing campaign, the cars’ infrastructures were virtual identical. By reselling the Eclipse® body style to Eagle, Mitsubishi was able to generate additional revenue, and Eagle was able to add a new product to their portfolio and then add unique branding and positioning. It was a mutually beneficial transaction.
White label cloud services are quite similar. AwesomeCloud provides the raw hardware and software resources to our channel partners, who then add their own branding and managed services around the AwesomeCloud platform to make it their own.
While many of our channel partners and resellers re-brand the AwesomeCloud platform, others opt to offer the AwesomeCloud brand to their clients as a best-of-breed service. The decision to offer AwesomeCloud as a white label product or a best-of-breed service depends on your specific business.
White Label Business Model
If you’re wondering why AwesomeCloud doesn’t sell to end-users, you’re not alone. We often receive that question from prospective channel partners and end-users alike. Simply put, AwesomeCloud excels at building and maintaining the infrastructure required to provide cloud services – it’s what our team does best. Our channel partners excel at offering IT consulting and managed services around the cloud services that they resell to their clients through our Cloud Reseller Program.
In short, these are two mutually exclusive strengths for different types of businesses. Very few channel partners, often MSPs, have the resources to develop their own cloud infrastructure and very few cloud providers have the geographic reach to locate and sign-up new clients.
Who Resells White Label Cloud Services?
The majority of our channel partners are IT service providers operating as Managed Services Providers (MSP) or Value-Added Resellers (VAR). MSPs and VARs offer the AwesomeCloud platform to their clients (end-users) as part of a portfolio of IT services designed to help each of their clients become more productive and efficient.
By offering cloud services exclusively to MSPs, AwesomeCloud is able to indirectly work with clients across North America. For example, Modo Networks is a Texas-based MSP that focuses on provider IT services SMBs.
We’re also able to offer cloud services to end-users located in the great white north. 403Tech, one of our newest partners, is located in Canada and services the Calgary metro area.
Our business model as a channel-partner-focused cloud provider enables us to reach users located across an entire continent, and provides each of our partners with a new product line that generates monthly recurring revenue. It’s a win-win situation.
Aspiring cloud resellers who are interested in capitalizing on the growth of cloud computing but don’t yet have a client base, are also invited to join our Cloud Reseller Program. AwesomeCloud’s pricing is structured so that our channel partners only pay for the cloud services that they resell. This is a great fit for aspiring resellers because they can focus their time and resources on developing client bases, not paying monthly bills.
Are White Label Cloud Services Right for My Business?
A white label cloud is generally a great fit for businesses that are either unwilling or unable to invest in developing, managing, and optimizing their own cloud-based infrastructure. If you’re time is better spent offering IT consulting or closing new business, we highly recommend working with a white label cloud provider. For businesses with extremely deep pockets and the ongoing constitution to manage their own infrastructures, building may be a better solution.
If you’re interested in offering white label cloud services to your existing clients or prospective clients through our Cloud Reseller Program, please drop us a line by completing a contact form, or by connecting with us through Twitter using the @awecloud handle. We’d love to hear from you!