Criteria for Hosting Partners – 5 things VARs and ISVs should look for in a hosting partner

Before you take your practice to the cloud, consider these five criteria for hosting partners - high customer retention, compliance and security, expertise in your software, fair commission based partnerships and continued innovation. 

Spending on cloud IT services is expected to grow five times faster than IT industry as a whole over the next two years, according to a recent report from IDC, at a 23.5 percent compound annual growth rate (CAGR).  As cloud and mobile computing continue to gain momentum, more businesses are turning to the cloud to deploy their mission critical applications, processes and data storage.

For consultants, developers, VARs and ISVs this presents a great opportunity to tap into the recurring revenue of the Software as a Service (SaaS) market.

“The cloud market is growing fast and you can’t afford to be on the tail end of the trend. There is still an opportunity to catch up, but time is running short,” said the IDC report.  “You need to think clearly about where your business will be in one, three and five years’ time, and prepare for that future reality. Go out and get some cloud deals now if you haven’t already.”

But switching from a project based business model to managed service model is a switch that many existing on-premises IT professionals are reluctant to make.  Reorganizing a business in such a dramatic fashion would likely cause a period of decreased top line revenues, while service revenues will only be recognized over time.

However, with big spending happening in this space, VARs and ISVs are not likely to turn their back on the SaaS market.  Partnering with a cloud and hosting services provider will allow them to gain the benefits of recurring revenue model without abandoning the line of business that has been their bread and butter for years.

To ensure that the partnership is mutually beneficial, there are a few criteria IT professional services and software providers should require from a hosting partner:

1. Low Customer Turnover Rate means the organization’s claims of the highest standards of service are backed up by customer loyalty.
2. Compliance and Security are top priorities for a growing number of businesses.  Partner with an organization that can offer compliance validated processes and services through highly secure and compliant data centers and a team of compliance certified IT professionals.
3. Expertise in Your Software and on-premises deployments is rare among cloud providers, but important.  To ensure a smoother deployment, better after-sale service and more streamlined communication, choose a cloud provider who has implemented the specific software you work with, and has experience delivering solutions on-premises, in cloud and in a private hosting environment.
4. Fair Commission Based Partnerships with comprehensive agreements assures that there are no surprises and know confusion between partnerships down the road.
5. Continued Innovation of services is critical to build long lasting relationships that will continue to adapt to changing IT landscape.  Choose a provider with a reputation as an industry thought leader and innovator.

Business hosting needs and customer hosting needs go hand-in-hand.  You need a hosting partner with a reputation for reliable consistent and affordable cloud hosting services for more than ten years.

RoseASP, which has been hosting Microsoft Dynamics ERP since 2000, achieved a 97.4 percent customer retention rate in 2014 as customers, Partners and ISVs have seen the hoster’s commitment to delivering the highest levels of compliance validated services with an emphasis on innovation and bringing the human touch to the digital world.

“We’ve worked extremely hard as a team and with our partners to deliver the highest levels of quality service in the industry,” said Linda Rose, founder and CEO of RoseASP, in a recent press release.  “It is truly gratifying to see that hard work translated into so many satisfied customers.  Being named by Microsoft as SMB Cloud Partner of the Year was an accomplishment in itself, but knowing that nearly all of our customers agree and continue to do business with us is very meaningful.”

by RoseASP