eFolder Lunch, Three Secrets to Pricing and Packaging Your BDR Service

© 2012 eFolder, Inc. All Right Reserved.1

Three Secrets to Pricing and Packaging Your BDR Service

http://inmaps.linkedinlabs.com

Three Secrets to Pricing and Packaging Your BDR Service

Ted HulsyVP of Marketing, eFolder678-888-0700 x151ehulsy@efolder.net

© 2012 eFolder, Inc. All Right Reserved.3

From Devastation…

© 2012 eFolder, Inc. All Right Reserved.4

From Devastation… to Domination

© 2012 eFolder, Inc. All Right Reserved.5

My Promise: You and Your Profits

• Give you real life partner pricing examples

• Show you how to get 75% recurring gross margins

• Help you to get started

© 2012 eFolder, Inc. All Right Reserved.6

Who is Ted?

http://inmaps.linkedinlabs.com

© 2012 eFolder, Inc. All Right Reserved.7

Managed Service Packaging Challenge

“The biggest challenge in managed services today is the trap of selling point solutions.

We go for client relationships where we own and deliver a complete managed services bundle, where business continuity is just a piece of the overall solution.”

Dave Watts

President, CEO, NetFusion

© 2012 eFolder, Inc. All Right Reserved.8

Killer Managed Services Bundle

24x7 Help desk

Managed business continuity

Managed network LAN/WAN/firewall/web

filtering

Line of business apps

Managed security AV/Spy/FW

Managed desktop

Managed Server

One price per client per month, based upon size/users/devices

© 2012 eFolder, Inc. All Right Reserved.9

Bundles Payoff

“The client sees a total solution, not line items, not nickels and dimes. And we can build in everything we know the client needs.

We get the benefits of standardization and expertise, while delivering a higher level of service to the client.”

Dave Watts

President, CEO,

NetFusion

© 2012 eFolder, Inc. All Right Reserved.10

BDR and Winning New Clients

“We are very focused on new client acquisition and we see BDR as a wedge service that can get us into new accounts that we can grow into a larger relationships.

Our BDR service needs to be rock solid as a standalone offering we can offer to any SMB.”

Lyf Wildenberg

President/Co-founder

Mytech Partners

© 2012 eFolder, Inc. All Right Reserved.11

BDR Service Line

• Bundle Model– Targets 50-70% recurring gross margin– Incorporates appliance cost into bundle– Flat $750 setup fee

BDR 1-125 BDR 2-250 BDR 3-500 BDR 4-1500 BDR 6-2000

Monthly Retail Price $300 $450 $600 $867 $1,125

Included # Servers1 2 3 4 6

Included Protected GB125 250 500 1500 2000

© 2012 eFolder, Inc. All Right Reserved.12

Simplicity Payoff

“We try to think like a vendor in terms of the simplicity and packaging of our offering.

Simplicity allows us to sell more easily and penetrate new accounts.”

Lyf Wildenberg

President/Co-founder

Mytech Partners

© 2012 eFolder, Inc. All Right Reserved.13

Labor Cost Challenge

“We see too many MSPs leaving money on the table.

They over commit in their pricing bundles and get creamed on their labor costs down the road.”

Erik Thorsell

President/Founder

Success Computer Consulting

Success Computer Consulting

• President of Success Computer Consulting– www.sccnet.com– Minneapolis, Minnesota– In business since 1992– 35 people, 22 engineers/technicians– HTG – member (six years), facilitator (four years)

• eFolder Partner for since 2006

SCC’s BDR Managed Service Offering

• 113 managed service clients– 71 BDRs in production (63% of MSP clients)– Protecting 327 servers and over 4,500 users– Over 90% of new clients get a BDR

• BDR gross margin in 2011 = 75.7%– In other words, cost = 24.3% of the selling price– Our most profitable offering

SCC BDR Sales Strategy

1. Understand client needs in their terms

2. Unbundle the offering and build on it

3. Protect the margin (minimum 66% per deal, down to 50% with manager approval)

1. Understand Needs in Their Terms

• Ask clients to explain their expectations• Ask them to quantify tolerable downtime

by key application/function• Ask them to quantify cost-per-hour of

downtime

• Don’t sell BDR features/performance specs; respond to the client’s needs directly!

2. Unbundle and Build

• Own the equipment right away, and have the client pay for it

• Give clients ultimate flexibility• Add periodic services that clients will

pay for – testing, DR drills, reporting

19

eFolder cloud data protection services

eFolder Backup

eFolder ShadowProtect BDR

Image BackupBDR Appliance

On-site Virtualization

File / folder Backup

eFolder AppAssure Cloud

Local Storage andAppAssure Core

Image Replication and Storage

eFolder Continuity Cloud

Cloud Recovery as a Service

STRICTLY CONFIDENTIAL – NOT FOR REDISTRIBUTION © 2012 eFolder, Inc. All Right Reserved.

© 2012 eFolder, Inc. All Rights Reserved.20

eFolder BDR

eFolder Storage Cloud

eFolder BDR

Image backup

BDR applianceOn-site virtualization

Users

Productionservers

Disaster recovery options 1. Download 2. Disk shipment

eFolder Continuity Cloud3. Emergency in the cloud

virtualization and recovery

© 2012 eFolder, Inc. All Rights Reserved.21

Partner Pricing

Please call eFolder for partner wholesale pricing details:

800-352-0248www.efolder.net/join

2. Unbundle and Build

2. Unbundle and Build

3. Protect Margin

• Start with the end margin in mind• Price based on value• No assumptions about competitive pricing• Avoid all-you-can-eat

© 2012 eFolder, Inc. All Right Reserved.25

Profit Payoff

“BDR is our most profitable managed service offering and eFolder is our key partner to help us deliver a highly reliable and predictably profitable service offering.”Erik Thorsell

President/Founder

Success Computer Consulting

© 2012 eFolder, Inc. All Rights Reserved.26

eFolder AppAssure Cloud

© 2012 eFolder, Inc. All Right Reserved.27

Solution Components

Best-of-breed server imaging software

eFolder cloud replication

eFolder cloud storage

eFolder cloud recovery

© 2012 eFolder, Inc. All Right Reserved.28

Feature Summary

Capability eFolder AppAssure

Cloud

Application integrity checks

Universal Recovery

Chain-free retention policies

Global deduplication

Silent data corruption prevention

Fast recovery with Virtual Standby

Cloud recovery

eFolder Partner Portal

© 2012 eFolder, Inc. All Rights Reserved.29

Partner Pricing

Please call eFolder for partner wholesale pricing details:

800-352-0248www.efolder.net/join

© 2012 eFolder, Inc. All Right Reserved.30

Join eFolder

Gold AppAssure Service Platinum

eFolder AppAssure Cloud

eFolder Continuity Cloud

eFolder ShadowProtect BDR

eFolder Backup

eFolder Email Security

eFolder Exchange Archiving

eFolder BDR Rescue Program

Partner branding

Wholesale monthly billing

Made in America Support

Partner Center Portal

Named Account Manager

Enrollment Fee Rebate

Special pricing, eFolder Backup

Pooled storage, eFolder BDR

Enrollment Fee $500 Waived, $100 min per mo. $1000

© 2012 eFolder, Inc. All Rights Reserved.31

eFolder Competitive Advantages

• Leverage the power of the cloud• Manage the migration from

on-premises to cloud servicesAdapt

• Your own service offerings• Your own pricing• Your own branding

Differentiate

• Predictable, monthly revenue streams• Low operating costs• Consistent margins and cash flow

Thrive

Q&A

Appendix

© 2012 eFolder, Inc. All Rights Reserved.34

Flexible Deployments for Small Biz

eFolder Storage Cloud

eFolder ShadowProtect Backup

Image backup

Productionserver

Key software tools

Pricing:• $25 per server/mo.• $40 per site (150 GB included)• $0.30-$0.20 per GB additional

© 2012 eFolder, Inc. All Rights Reserved.35

Deployment Scenario: Build Your Own BDR

eFolder Storage Cloud

Build Your Own BDR

Third party server

Image backup

Productionservers

Key software tools

© 2012 eFolder, Inc. All Rights Reserved.36

Deployment Scenario: Cross-site Replication

eFolder Storage Cloud

Client Location 1

Image backup

BDR applianceOn-site virtualization

Productionservers

Client Location 2

Image backupBDR appliance

On-site virtualizationProduction

servers

Image replication

© 2012 eFolder, Inc. All Rights Reserved.37

Deployment Scenario: Many-to-one Replication

Partner PrivateCloud

Client 1

Image replication

BDR applianceOn-site virtualization

Productionservers

Client 2

Image replication

BDR applianceOn-site virtualization

Productionservers

High capacity BDR

Client 3

Image replication

BDR applianceOn-site virtualization

Productionservers

38

eFolder cloud security services

eFolder Security Cloud

eFolder Email Security

Outbound

Inbound

Outbound

Inbound

Mail ServerUsers Third Parties

Spam Quarantine

Admin Console

Anti-virus Anti-spam

STRICTLY CONFIDENTIAL – NOT FOR REDISTRIBUTION © 2012 eFolder, Inc. All Right Reserved.

© 2012 eFolder, Inc. All Rights Reserved.39

eFolder BDR Competitive Advantages

Field upgradeable BDR appliances

The latest software version, guaranteed

Exchange granular recovery

Silent data corruption prevention

ConnectWise PSA integration

© 2012 eFolder, Inc. All Right Reserved.40

Proactive Data Integrity Checks

Your Encrypted Data+ Checksums

+ Digital Signatures

Your Data

Transmission via Encrypted Network Tunnel over Public Internet

Verificationand Duplication

Encryption EncryptedTransmission

Verificationand Reassembly

Data Protection and Duplication during Upload

Data Verification and Reassembly during Download

Transmission via Encrypted Network Tunnel over Public Internet

Your Encrypted Data+ Checksums

+ Digital Signatures

Your Data,Cryptographically

Verified

Decryptionand

VerificationEncrypted

Transmission

© 2012 eFolder, Inc. All Right Reserved.41

Application Integrity Checks

© 2012 eFolder, Inc. All Right Reserved.42

Chain-free Retention Policies

© 2012 eFolder, Inc. All Rights Reserved.43

Global Deduplication

Raw Data Compressed + Deduped Data Data Deduped

Globally AcrossAll COREs / BDRs

(with same encryption key)

© 2011 eFolder, Inc. All Right Reserved.44

Contact Us

Phone: 800-352-0248Email: info@efolder.netWeb: efolder.netBlog: efolder.net/blog/

Twitter: twitter.com/eFolder