Peer-To-Peer: How One MSP Bills For Cloud Services
By Bernadette Wilson, associate editor, Business Solutions magazine
The July 2013 edition of Business Solutions Magazine featured “3 New Ways To Uncover New Cloud Sales Opportunities.” In the article, Dan Edwards, CEO of Pact-One Solutions, an MSP focused on the dental market, offered advice for selling cloud services. Edwards, who has been selling managed services to healthcare providers for more than eight years, also commented on how his firm handles billing for cloud services.
Edwards says clients pay for services based on usage, whether they are cloud backup, antivirus, or cloud serve customers. He added that Pact-One bills 99% of its clients on a monthly basis — the company’s preferred billing cycle — but a few clients have arranged to pay quarterly or annually.
In the article, Edwards says Pact-One uses one-year rather than the typical managed service three-year term for contracts. “A 12-month contract gives customers more assurance that we’re going to continue working hard to make them want to renew with us. This approach has proven itself by the fact that our cancellation rate is less than 5%.”