Everything I need to know, I learned dieting – Selling Backup in Small Bites

Posted by R1Soft on Dec 4, 2012 2:30:00 PM

selling-backup-in-small-bites

With all of the talk here lately about our new Server Backup Manager 5.0, a lot of discussions are taking place about pricing. With our stated goal of making it affordable to back up every server in your environment, how does that translate to our great group of service provider partners who offer R1Soft’s backup software as either a reseller or as part of their own solutions? We talk about our Service Provider License Agreements (SPLA), but what does this mean exactly?

We wanted to offer SPLA pricing to make it easier for our partners to offer Server Backup Manager and in a way that is in tune with their own business models. A model that would allow them to “pay as they go and pay as they grow”, offering server backup at prices that are both very affordable and profitable. But how do we stuff all of that into SPLA so that everyone understands?

Sell Backup in Small Chunks

I had a eureka moment on this while planning out meals as part of my post-Thanksgiving diet last week. Whether it is to lose weight, control diabetes or maintain general good health, health care professionals and nutritionists tell us we are better off eating multiple small meals than gorging ourselves with a small number of large meals. I am sure you have heard this before as well (now if I could just follow that rule!). It is simply a great way to regulate consumption and maintain a healthy system.

Well, the same can be said of SPLA.

A significant number of our service provider partners operate on a month-to-month, pay-as-you-go basis. Their customers pay each month for what they consume. Their customers typically don’t make long-term commitments, and they don’t buy a lot of services up front.

So, for us, asking our partners to make a large purchase and commitment to us, when their customers were not doing it for them was not only unfair, it didn’t map to their own business model. Partnerships work best when both sides win. So we had to have our pricing and licensing match the business model of our partners. Our SPLA program does exactly that.

We enable our partners to license Server Backup Manager in bite size chunks, smaller meals if you will. No commitments or big buys upfront – although that option is still available to those that prefer it. You buy what you need, when you need it. You pay for what you consume, when you consume it.

We call it SPLA, but you can call it whatever you'd like. At the end of the day it is healthier for our partners. It allows them to offer backup in the same manner they offer their other services without putting a burden on their cash flow. If is better for our partners, in the long term it is better for us too.

Now pass me another slice of pie...

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Topics: Backups, SPLA, server backup, partner program

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