Looking Beyond the Hyper-Scaler Clouds – Don’t Forget the Little Guys!

I’ve been on the road over the past couple of weeks presenting to Veeam’s VCSP partners and prospective partners here in Australia and New Zealand on Veeam’s Cloud Business. Apart from the great feedback in response to what Veeam is doing by way of our cloud story I’ve had good conversations around public cloud and infrastructure providers verses the likes of Azure or AWS. Coming from my background working for smaller, but very successful service providers I found it almost astonishing that smaller resellers and MSPs seem to be leveraging the hyper-scale clouds without giving the smaller providers a look in.

On the one hand, I understand why people would choose to look to Azure, AWS and alike to run their client services…while on the other hand I believe that the marketing power of the hyper-scalers has left the capabilities and reputation of smaller providers short changed. You only need to look at last week’s AWS outage and previous Azure outages to understand that no cloud is immune to outages and it’s misjudged to assume that the hyper-scalers offer any better reliability or uptime than the likes of providers in the vCloud Air Network or other IaaS providers out there.

That said, there is no doubt that the scale and brain power that sits behind the hyper-scalers ensures a level of service and reliability that some smaller providers will struggle to match, but as was the case last week…the bigger they are, the harder they fall. The other things that comes with scale is the ability to drive down prices and again, there seems to be a misconception that the hyper-scalers are cheaper than smaller service providers. In fact most of the conversations I had last week as to why Azure or AWS was chosen was down to pricing and kickbacks. Certainly in Azure’s case, Microsoft has thrown a lot into ensuring customers on EAs have enough free service credits to ensure uptake and there are apparently nice sign-up bonuses that they offer to partners.

During that conversation, I asked the reseller why they hadn’t looked at some of the local VCSP/vCAN providers as options for hosting their Veeam infrastructure for clients to backup workloads to. Their response was, that it was never a consideration due to Microsoft being…well…Microsoft. The marketing juggernaut was too strong…the kickbacks too attractive. After talking to him for a few minutes I convinced him to take a look at the local providers who offer, in my opinion more flexible and more diverse service offerings for the use case.

Not surprisingly, in most cases money is the number one factor in a lot of these decisions with service uptime and reliability coming in as an important afterthought…but an afterthought non-the less. I’ve already written about service uptime and reliability in regards to cloud outages before but the main point of this post is to highlight that resellers and MSP’s can make as much money…if not more, with smaller service providers. It’s common now for service providers to offer partner reseller or channel programs that ensure the partner gets decent recurring revenue streams from the services consumed and the more consumed the more you make by way of program level incentives.

I’m not going to do the sums, because there is so much variation in the different programs but those reading who have not considered using smaller providers over the likes of Azure or AWS I would encourage to look through the VCSP Service Provider directory and the vCloud Air Network directory and locate local providers. From there, enquire about their partner reseller or channel programs…there is money to be made. Veeam (and VMware with the vCAN) put a lot of trust and effort into our VCSPs and having worked for some of the best and know of a lot of other service provider offerings I can tell you that if you are not looking at them as a viable option for your cloud services then you are not doing yourself justice.

The cloud hyper-scalers are far from the panacea they claim to be…if anything, it’s worthwhile spreading your workloads across multiple clouds to ensure the best availability experience for your clients…however, don’t forget the little guys!

Leave a Reply