A monthly business subscription holds a great deal of appeal. After all, it mirrors how we consume services in our personal lives. Whether you have a subscription to Netflix or are paying a monthly bill for cable TV, the idea of a recurring charge that includes equipment “rental” is a part of our culture. It provides the ability to remain flexible yet always have access to the latest generation of technology, or, in the case of Netflix, an early preview of the latest Star Wars film.
For the managed service provider (MSP), this model means alleviating the capital expense of purchasing equipment and setting up a recurring revenue model with their end customers. No more need to hold inventory in a warehouse or worry about when the next big deal will come in to help out the bottom line. With recurring charges, the revenue stream grows exponentially and many MSPs in their first few years realize growth rates that double their revenue annually.
This week ADTRAN introduced ProCloud Subscription Services – an innovative program where businesses can take advantage of the latest wired and wireless networking technologies at an affordable monthly price. ProCloud Subscription Services provide MSPs with an easy to use model where they can quickly turn up new cloud-managed services for their customers. For the end customer, this means offloading the management of their network to a trusted provider, with the ability to easily support more mobile devices, more quickly access cloud applications, and support high-bandwidth video content and quality voice services, all without the capital expense overhead.
MSPs can tailor services with a pay-as-you-go model and proactively engage with customers on capacity planning and upsell new solutions and/or services. Additionally, service providers and end users benefit from a future-proofed service that includes automatic product refreshes, which is critical for all infrastructure technology, but especially Ethernet switches and Wi-Fi access points.
Jason King is the director of marketing for the ProCloud Managed Services Group at ADTRAN. With over 15 years' experience in the industry, he is responsible for the overall promotion and positioning of the company's cloud-managed networking solutions. Find him on Twitter @jjking24