Are You Adding Value With Your Hosting Packages?

Posted by on Mar 18, 2013 in Information Technology | No Comments

How Application Performance Management Can Lead To Business Growth

Hosting has been going through a lot of changes in the past couple of decades, beginning with the massive build-up in the late ’90s, leading to the major industry contraction following the burst of the tech bubble, and eventually slow, steady growth. In this day and age, hosting has become ubiquitous for organizations of all sizes, but hosting services themselves have become a commodity – most hosters face vicious competition, focusing primarily on physical and virtual space provisioning.

performanceFor some hosting companies, this can make for a very challenging environment, one in which competing businesses are in a foot race to the best price per square foot in a virtual machine. For others, however, the apparent “sameness” within the hosting market can also mean big opportunities. That’s because it gives them a chance to add products and services that go beyond their core offerings. In other words, they can provide not just infrastructure, but also other value-added services that help their clients to achieve business goals.

For the end client, this can mean more chances to use hosting and related technologies to make their businesses more efficient, or more profitable. The hosting companies, in turn, get things that every business wants:

  • Closer relationships with their customers who initially come to them for hosting
  • A bigger share of the client’s technology budget
  • A more secure relationship with customers that makes it harder for them to leave
  • Differentiation from other hosting companies
  • Marketing points they can use to find and close new business
  • Growth in both revenue and profitability for the hosting company

What are these value-added services that hosting companies can provide? There are numerous examples, but Application Performance Management (APM) is a perfect example. Nearly every hosting customer has two distinct needs: the ability to run at least one web application, and excellent performance for their visitors, users, and customers. With that in mind, a conversation about APM services is an easy one to have. Naturally, it’s great for the hosting company, but also allows them to stand out from competitors, as most aren’t taking the time to discuss add-on services and benefits with clients.

Of course, one of the reasons that more hosting companies aren’t having these types of discussions with their clients – and enjoying the resulting sales and business relationships that result – is because they lack the technical expertise to properly present them, and don’t have the time or money needed to develop those skills. The most logical way around the problem is to partner with a specialized service provider, like Naalium, to handle these details. When the relationship is properly positioned, it’s a win-win situation for everyone.

Consider the way the iPhone and Android development community works. Each provides a platform with, and aggregation points for, applicants, but it is developers who provide value-added services (usually in the form of apps) that bring more value to end users. They work together, and everyone comes out ahead, from the smartphone manufacturers to the developers and all the way down to customers and users.

The next wave of change is coming within the hosting industry. While it might seem that one company’s services are almost the same as another’s today, it’s those businesses who can differentiate themselves, offer more in value-added services, and still give customers affordable hosting who are going to come out on the top of the pile.

Naalium helps hosting companies to optimize web applications and infrastructure through affordable, high-quality web virtualization. Let’s get together to see what we can do for your customers and the future of your business.

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We help our clients to optimize web applications and infrastructure through affordable, high-quality web virtualization. Let’s talk.