Find Untapped Revenue: Sell PaaS Now

Solution providers can bundle PaaS VMs with managed services offerings to grow revenue and build stickier customer relationships.

Platform as a Service

Migrating workflows to the cloud has jumped to the front of businesses’ priority lists. And it’s projected to drive Platform as a Service adoption to nearly $116 billion by 2028 (up from almost $61 billion in 2023), according to Statista.

Value-added resellers (VARs) and managed services providers (MSPs) can find opportunities to sell PaaS in any market, especially among businesses looking to solve remote work issues or reduce their on-premises footprint. Organizations open to PaaS solutions include larger companies that don’t want to spend time managing the hardware lifecycle or data center workloads. VARs and MSPs may also be able to capitalize on the demand for PaaS from businesses with small IT teams – or no in-house IT.

Growing Revenue Through PaaS

Providing PaaS benefits your clients by lessening their workloads for managing hardware, data center infrastructure and physical networking. It can also have benefits for your business. You can expand a monthly PaaS subscription with additional services. With your software built into the PaaS stack, you can monitor, update, and protect the solution.

VARs and MSPs can also bundle PaaS virtual machines (VMs) with managed services offerings like antivirus, security, or helpdesk to grow revenues and build a stickier relationship with your clients.

Develop Expertise

Helping your clients move workloads to the cloud takes knowledge and expertise. Therefore, it’s a good idea for VARs and MSPs to familiarize themselves with the PaaS offerings in their portfolios to answer questions on storage, CPU architecture, and hypervisor capabilities.

Depending on the PaaS solutions you’re selling, you may want to pursue training and certifications on building architecture, for example, when providing AWS or Azure.

Certain cloud partners, for example, Virtual Systems, GreenCloud, and INAP, provide in-house cloud experts to help you build your solutions, reducing the need for the MSP or VAR to possess such knowledge. Understanding the pricing models, however, can be tricky, as well as how to predict costs over time consistently.

The decision to partner, however, also takes some careful consideration. Check out the pricing models, determine where you need your margins to be and determine whether or not the market will bear that price.

The Demand for PaaS in 2024 and Beyond

With the steady rise in cloud adoption, VARs and MSPs may be concerned that it’s too late to begin offering PaaS; however, that’s not the case. Markets are still on the front end of the adoption cycle for PaaS, and mid-market and SMBs are lagging behind larger companies. Additionally, some companies migrate back to on-premises systems after bad experiences with the cloud. Look for opportunities to help your clients successfully transition and find value in PaaS.