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Nutanix new pricing model spells good news for MSPs

Channel maturing attitude towards MSPs displayed in new vendor pricing programme

Nutanix has announced a purchasing programme to help managed service providers (MSPs) build discerning, profitable services on Nutanix’s invisible infrastructure.

Many MSPs are providing managed services as only part of their business model due to the challenges facing them in setting up the infrastructure required for certain jobs.

Many provide break/fix services and engage in projects as part of a larger consolidated team which addresses both issues with vendor cost models and a proportion of clients still reluctant to hand over their entire IT landscape to an outside firm.

With FlexPrice, MSPs can take advantage of Nutanix solutions to develop cloud-based and managed services, such as infrastructure as a service (IaaS), desktop as a service (DaaS), and disaster recovery.

The program is innovative in that it seeks to address business and financial difficulties faced by a number of MSPs, including high upfront investment costs to build and expand services, datacentre inefficiency, and lengthy procurement cycles that hamper the speed of service delivery.

This move shows that the channel is evolving and vendors like Nutanix are taking the rising number of MSP’s in the market as a serious change in the way to do business.

As reported in Microscope in May Roger Harry, CEO of Circle IT is advising MSPs starting out on the services journey, not just to rely on the standardised approach but to deliver some form of customized support expertise that will make the business stand out from the competition, thus giving an indication of how the market is maturing.

The Nutanix pricing model will help MSP’s to take this advice and focus on the services they provides as the challenges in initial costs are lowered.

“In order to win against the legion of low-cost cloud providers, we need to deliver greater customer value via differentiated services. This requires infrastructure that is simple to deploy, easy to manage and efficient to scale,” said Kevin Meany, CTO and Co-Founder, Versatile.

“With Nutanix FlexPrice, we can now focus on our service definition and delivery, and stand apart from cloud providers who sell strictly on price.”

The purchase programme means service providers can engage in a flexible subscription based model to procure Nutanix-qualified hardware and enable Nutanix web-scale software.

Providers can deploy and expand infrastructure one node at a time with 3, 6, 12 and 36 month term-based pricing, lowering upfront capital costs for storage, servers and virtualisation.

The subscription model also aligns datacentre investments more tightly with IT consumption.

FlexPrice delivers key benefits to MSPs including lower upfront capital investment to develop and deploy new service meaning faster time to market for new differentiated services and higher datacentre utilization.

This represents a pay-as-you grow procurement model delivering improved cost predictability and single point of support for IT infrastructure with Nutanix.

“We are excited to help service providers build the right infrastructure to align with their business model so they can drive competitive differentiation and enhanced profitability,” said Chris Morgan, VP, Americas Channel and Distribution, Nutanix.

“FlexPrice gives service providers a new way to compete, and offers our customers a platform upon which they can build truly differentiated services.”

Nutanix Xtreme Computing Platform eliminates infrastructure complexity and reduces costs so service providers can focus on delivering value added services.

With Nutanix, service providers can profitably deliver differentiated services and greater value to customers by leveraging Nutanix benefits, including incremental scaling, simplified management and fast performance.

It remains to be seen if other vendors will take the example of Nutanix and move to a progressive model of pricing but with many resellers moving towards providing services it could be the way forward.

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