Memo to VARs: SMB Hosting Is Not Cloud Computing

More and more VARs and MSPs promote cloud computing services on their web sites. But here’s the problem: It’s time to draw a clear line between true cloud services and traditional hosted applications.

Perhaps I’m splitting hairs, but I think many VARs and MSPs are abusing the cloud computing term without really making the necessary cloud computing investments. Alas, plenty of solutions providers now position co-location services, hosting services and hosted servers as cloud-centric systems. They’re not. I suspect most VARs can’t offer so-called bursting — on demand scalability that ensures customers’ web sites and cloud applications remain responsive during unexpected demand spikes.

Still, the cloud challenge also presents an opportunity. If you offer true cloud services, it’s time to call your competitions’ bluff. Be sure to educate your customers’ about traditional dedicated hosted servers vs. cloud services. Describe why a co-location server running email is not the same as email running in the cloud. Describe why your cloud solutions will scale when traditional systems will hit performance bottlenecks.

In short, describe why your cloud services should not be confused with the traditional hosting services offered by the VAR down the road. Then, charge the premium you deserve.

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