60-70% of Indiana-based Libanga Computer Systems’ managed services are delivered from Intermedia’s cloud. But their success goes far beyond Exchange: Libanga’s “land-and-expand strategy” has made them one of Intermedia’s most successful Cloud Server partners.
“As Intermedia expands its portfolio, we do the same,” says Mario Guerendo, Libanga’s President and CEO. “We hook a customer with Exchange Email and then introduce other services. For example, we have a client we’ve been working with for four years, and we’ve tripled our monthly billing with them as we add Intermedia services that become available.”
We recently sat down with Guerendo to understand how Libanga uses Cloud Server to double or even triple monthly billings from their Exchange Email clients.
60-70% of Indiana-based Libanga Computer Systems’ managed services are delivered from Intermedia’s cloud.
Industry: Managed Service Provider
Headquarters: Zionsville, IN
Intermedia’s customer since: 2009
Most Intermedia partners have reported two main challenges in trying to sell Cloud Server: first, identifying the best apps for the service; and second, communicating why Cloud Server is more valuable than both on-premise servers as well as other clouds.
Guerendo understands these challenges. But he assures us that there’s light at the end of the tunnel. “We actually doubled the monthly revenue for our first client that we moved to Cloud Server.” Here’s how he does it.
Generally, Guerendo says, a single Cloud Server is fine for non-resource-hungry file servers and application servers, like QuickBooks or CRM apps/databases. For heavy SQL applications, he uses one Cloud Server for the database and another for the apps. This practice is made easier (and more affordable) by the fact that Intermedia includes VPNs and firewalls standard.
Guerendo also uses Cloud Server for vertical-specific apps like Electronic Medical Records or legal case management software.
Because most of his customers are between 10 and 50 users, he typically provisions one or more Cloud Server III (with 2 vCPUs and 3 GB of RAM). He’ll add an extra vCPU if the workload demands it.
Guerendo outlined two keys for convincing customers to choose Cloud Server: lower costs and better business continuity/disaster recovery.
There are also three objections that Guerendo routinely encounters—and routinely disarms.
As Intermedia expands its portfolio, we do the same. We hook a customer with hosted Exchange and then introduce other services.MARIO GUERENDO, President and CEO, Libanga Computer Systems,
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Guerendo regularly leverages Cloud Server to boost monthly revenue from his existing customers. And he’s sure his strategies will pay off for any Intermedia partner looking to do the same.
Guerendo also has advice for selecting Cloud Server over Rackspace or Amazon. “I like working with providers that have a ‘nice ecosystem.’ We already know Intermedia’s processes, we know how the company functions and we already have other services with them. And it’s a lot easier to work with one hosting provider than with ten.”
“What’s more,” Guerendo continues, “We also like the fact that Intermedia is white-labeled. Rackspace has better pricing than Intermedia, but we still choose Intermedia. In the hosting business, trust is a big thing. We’ve been working with Intermedia for a long time, and we see how they LISTEN, and if we have to pay a premium, it’s worth it.”