Managed Hosting Provider Benefits from KEMP Technologies Application Delivery Products for the SMB Market

Small-to-medium sized businesses (SMB) continue to become more sophisticated, and are demanding the same level of quality and functionality for their IT web infrastructure as enterprise IT organizations. Many SMB organizations are responding to these demands by better understanding their application performance issues, and implementing their own application delivery optimization solutions provided by the various application delivery product vendors. However, many SMB organizations prefer to outsource their application delivery optimization infrastructure to Managed Web Hosting Providers (MHP).

KEMP Technologies value proposition for Managed Hosting Companies serving small-to-medium sized customers include the following categories:

Below are examples that show approximately what a return on investment with KEMP LoadMaster products might look like for a Managed Web Hosting provider. In these examples, the list price for a LoadMaster 2000 is ###price2000###. To provide full high-availability two LoadMaster 2000’s are required, with a total list cost of ###price2000ha###. However, this does not take into account that VAR Master Partners receive discounts on all KEMP products. This example also does not include any additional support extension fees for years 2-3. Additionally, an MHP may choose to add more than one customer per high-availability LoadMaster pair, which would dramatically increase the ROI by a factor based on the total number of customers per LoadMaster pairs.

The monthly equivalent cost to the MHP over 12 months is $417. If they charge $600 per month for basic application delivery services with full HA (minus SSL), that would give them an ROI within approximately 10 months. If they charged an additional fee of $50 per month for SSL, the ROI would be less than 9 months. After 9 months, their application delivery service profits other than their power and personnel costs are 100% margin. Another way to look at this scenario over a 3 year period would be as follows:

Scale this scenario over 20 customers and the total 3 year profit is $468,000.

The monthly equivalent cost to the MHP over 12 months is $417. If they charge $1200 per month for basic application delivery services with full HA (minus SSL), that would give them an ROI in just over 4 months. If they charged an additional fee of $100 per month for SSL, the ROI would be less than 4 months. After 4 months, their application delivery service profits other than their power and personnel costs are 100% margin. Another way to look at this scenario over a 3 year period would be as follows:

Scale this scenario over 20 customers and the total 3 year profit is $936,000.

Many benefits can be gained by SMBs outsourcing KEMP application delivery optimization products to an MHP, including:

The MHP provides the equipment as a bundled service offering, avoiding the need for (CAPEX) to deploy an application delivery solution.

MHPs can reduce operational expense (OPEX) for training employees for planning, implementing, managing and supporting application delivery optimization, or hiring additional personnel with this expertise. MHP customers can also benefit from the lower cost infrastructure of MHP operations that leverage economies of scale.

SMBs can take advantage of the MHP’s processes for application delivery optimization, including planning, management, support and control. MHP’s have the ability to scale their operations across many customers to leverage their investment in automated management tools, and management processes that improve the productivity of their IT staff. The efficiencies gained from these processes help reduce their OPEX costs for application delivery optimization services.

MHPs are technology service specialists, and dedicated technical staff that can support an SMB IT organization that may be short on technical resources. This specialized technical services expertise can benefit SMB customers by providing application delivery optimization to increase website reliability and performance, while reducing the total cost to run the site infrastructure.

Due to the economy of scale advantages that MHPs have, they can take advantage of advanced technologies for their application delivery optimization services, and stratify their service offerings to best accommodate their customers. As mentioned in the introduction, SMBs are becoming more sophisticated, and they are demanding the same level of quality and functionality for their IT web infrastructure as larger enterprises. By leveraging an MHP, SMB customers can take advantage of the application delivery services and gain the benefits of the technologies and facilities that may not be affordable to the SMB.

Managed Web Hosting Providers accelerate the learning curve and time to deploy an application delivery optimization solution.

Working with an MHP for application delivery optimization services can dramatically free up SMB IT staff, and better align in-house IT resources with the SMB business objectives.

* Significantly reduce support calls for unmanaged dedicated server customers.
** Minimum quantities required – on-site spare units are unlicensed, and require activation.

KEMP Technologies is a leader in cost-effective application delivery controllers and server load balancer appliances tailored to meet the needs of small-to-medium sized businesses (SMB) that rely on the Internet for e-commerce and business-critical applications. KEMP helps SMBs rapidly grow their business with 24/7 high-availability, better web infrastructure performance, scalability and secure operations - while streamlining IT costs.

Thousands of KEMP LoadMaster products are in use today to improve customer satisfaction by accelerating user access to business-critical web applications. Managed service providers also rely upon KEMP products to enable fast time-to-market and cost-effective operations for new and existing managed services.

KEMP’s highly affordable LoadMaster products include Layers 4-7 load balancing, content switching and server persistence, SSL offload/acceleration, WTS load balancing and persistence with Session Directory integration, and application front-end capabilities (caching, compression, intrusion prevention system), plus one full year of product support – delivering industry leading price/performance value.

The company is headquartered in Yaphank, New York. For more information, visit www.KEMPtechnologies.com, or call us at +1 (631) 345-5292.