Cohesity service providers are getting a pay-per-use option, an enhancement to the company’s partner program, Cohesity also announced on Tuesday new innovations in its cloud and managed services business.

This new payment model allows service providers (SPs) to pay for the data management services they use on a monthly basis. Up until now, Cohesity service providers had to commit to a block of capacity in advance. Cohesity first introduced a service provider track in October 2018, and has almost 100 service providers globally.

Cohesity’s David Kosman

“Our service providers helped us design and test multitenancy. The exact same thing happened around pay-per-use,” David Kosman, head of global service provider business at Cohesity, told Channel Futures. “One of the big things they told us was that whether they provision too high or too low, it comes with inherent challenges. Historically, that was on the shoulders of the service provider. Few vendors took on that risk.”

When it comes to provisioning, service providers face challenges. For instance, if they overprovision, they’re locking up capital. On the other hand, if they provision too low, they’re not being innovative or responsive to their customers.

Cohesity Pay-Per-Use fine tunes data management to meet varying demand.

The vendor built and designed Pay-Per-Use for service providers. The benefits include lower TCO — no upfront software capital investment and no over provisioning. Another benefit is that it lowers risk. Cohesity service providers have complete visibility into usage and costs. And the new payment model provides data driven budgeting and capacity planning.

Pay-Per-Use offers flexibility and the ability to scale with demand. Cohesity offers a minimum commitment tiers for providers of all sizes.

“This makes it easy for SPs to get a service to market quickly and we only bill on what’s consumed,” said Kosman.

Service-Provider Tested

The vendor has been piloting Pay-Per-Use for the last three quarters with more than a dozen service providers. The way it works is on a monthly commitment, which starts as low as $2,000 per month. By request from Cohesity service providers, the vendor is allowing for a ramp-up period.

“We have a commitment model, but we can give them an early ramp-up period for a number of months, where they’re not beholden to that minimum commitment. Instead, they’re being charged for actual usage,” he said.

Here are the new innovations announced Tuesday:

Cohesity says it recently doubled revenue growth, quarter over quarter. That’s partly because the vendor’s service providers have deployed hundreds of services.

“That’s one of the core value propositions of being a Cohesity SP, is being able to build and monetize multiple services on the same platform,” said Kosman. “We see SPs able to sell those services through their own sales teams and channel, but also through our sales teams and channel.