The SPLA license is designed to help service providers become more competitive, achieve price stability, utilize new technology quickly, and rent the solutions you need when you need them – eliminating the need to pay for things you aren’t using. The general process of becoming a SPLA hoster helps service providers improve their bottom line and therefore make more money – but there are a few tips (or tricks, perhaps?) service providers can put to use to reach their goals of making money with SPLA. Here are 4 tips for making money with SPLA:
1. Combine SPLA Licensing with Private Cloud Benefits
One way to increase your revenue is to combine SPLA licensing with the benefits of the private cloud. The private cloud is a scalable and secure method of hosting your data, but if you rent your software through SPLA licensing, you have a greater level of flexibility to offer your customers, the ability to improve your profits, and still maintain SPLA compliance.
Service providers can enter SPLA licensing with no out of pocket or upfront costs. Provided you structure your pricing schedule correctly for your clients, you ensure your client is paying for what is used and eliminating your own out of pocket costs for the software. One of the biggest benefits of this model over investing in hardware for your clients is the access to new technology without having to come up with large initial investments to get it started. Private cloud is secure, offers fast connectivity, and allows you to easily meet a client’s current and future needs affordably. Even if your client’s business grows rapidly or declines quickly throughout the year, you can meet those fluctuations and expand or reduce infrastructure, performance, and capacity requirements easily with a combination of private cloud and SPLA licensing.
2. Combine SPLA Licensing with the Citrix Service Provider Program
Citrix and Microsoft SPLA work well together and can result in cost savings and increased margins for the service provider who learns to combine the two programs successfully. For example, if you’re currently offering Windows RDS, you can work with Citrix to expand that business into a service that also offers complete hosted workspaces accessible from any device. The combination of Citrix programs with Microsoft SPLA enables service providers to differentiate their own service offerings to attract new customers and creating more options for making money with SPLA.
Through the Citrix Service Provider program, service providers can price Desktops as a Service (DaaS) solutions between $50 to $300 per user per month. Desktops as a Service includes hosted apps, complete desktops fully loaded with everything a business needs to operate, secure file share and sync, and device management.
Combining the Citrix Service Provider Program with Microsoft SPLA is a natural process as the two industry giants have enjoyed over 25 years of partnership. Service providers offering both Microsoft RDS licenses and Citrix workspaces to their existing client base are experiencing growth in the hosted services market. ISVs who combine Microsoft SPLA with the Citrix Service Provider Program can also offer applications as SaaS-based solutions.
3. Use Microsoft License Mobility for Changing Business Priorities
License Mobility through Software Assurance allows service providers to cost effectively meet changing business priorities with the lowest cost computing infrastructure. You can reduce your own costs by sharing infrastructure. Some Microsoft products purchased under your Volume Licensing agreement can be deployed in an Authorized Mobility Partner’s datacenter. The shared infrastructure lowers your operating costs, allowing you to make more money on your existing client base.
4. Making Money With SPLA: Path to Revenue Growth
Your clients that buy subscription software from you are more likely to buy other services from you as you’ve already established a relationship with them. Upselling products and services to existing customer’s costs five times less than trying to attract new clients – so the primary method of making money with SPLA involves offering your existing clients more services. Upsell new products and services to your existing clients and you will increase your revenue. Try the following path to revenue growth if you haven’t already, and take advantage of the fact that 80% of active trial users of Hosted Exchange will go on to buy business email:
• Migrate all users to Hosted Exchange
• Provide users with two free months of free business email
• Spend their two-month trial period making sure they are using the new features actively, to really experience what it has to offer
• At the end of the two-month trial, 80% of your active trial users will buy business email from you
Interested in learning more about how DXC can invigorate your service provider business? Or want to speak with one of our licensing experts to review your portfolio at no cost? Email here today!