How To Develop Monetization Strategy For Data Centers Offering IaaS Solutions

The world of cloud computing has boosted businesses and organizations by miles in the last few years. Cloud-based technology has provided robust storage and processing solutions for software companies and tech-based enterprises, empowering them to create innovative tools that empower other businesses in return. 

But in recent times, business owners have started looking into benefiting straight from the cloud services market. In 2019, the industry was worth over US$ 229 billion and will most likely grow to US$ 500 billion by 2023. With this figure in mind, data centers can benefit significantly from offering infrastructure as a service solution to their local markets with a SaaS monetization strategy in place. Here are some strategies to monetize from cloud services.



1. Differentiate

Today’s best SaaS monetization models rest on the foundation of developing unique value propositions. For IaaS monetization models, it’s not significantly different. While 77% of the cloud market belongs to five giants— Amazon, Microsoft, Alibaba, Google, and IBM— smaller cloud service providers can give excellent benefits. 

Some benefits that data centers can capitalize on as cloud service providers include enhanced protection and reliability, given that a smaller player can provide more attention and care to a smaller sample. IaaS solutions also help clients save time and resources, given that smaller players can have more attention at a smaller cost. Differentiating a smaller IaaS reselling business to a big player is like comparing McDonald’s with a specialty burger shop. You may not have the size, but you have the advantage of customization and the boutique experience, in which many people would gladly invest.


2. Localize

In an age of advanced globalization, there seems to be a re-shifting back toward localization. In Africa, for instance, banks are starting to invest in artificial intelligence and machine learning tools to improve and contextualize the customer experience. With the growing demand for localized tech-based services, cloud service providers- even those in developing markets–can leverage the movement towards supporting local solutions.

Localizing your approach makes you an instant favorite for a profitable segment of the local tech market and a possible forerunner as one of your local community’s most notable technology partners. In an age where companies take their businesses global, there is still power in building your business up to be a champion for the local. Build awareness amongst smaller firms in need of IaaS providers or tech-based companies and larger corporations that use cloud-based technology.


3. Incentivize

One substantial advantage that localized players have over global brands is their understanding of the local community’s felt needs. This edge gives them better insight into what additional incentives might get companies to switch over to smaller cloud service providers and data centers.

Local cloud services offer many benefits already, but smaller data centers can sweeten the deal more by further incentivizing their offers. Some great monetization strategy examples around incentivizing include adding think dev platforms, containers, data pipelines, machine learning, DevOps, automation, and other services. One other way to incentivize is to provide cheaper plans for longer subscriptions, such as giving a sizeable discount when clients sign up for a year instead of a month’s worth of services.


4. Inform

In the realm of service as a software and infrastructure as a software, information can be the deciding factor to a long term relationship with a client. In the case of billing for instance, customers can often lose trust towards a provider after experiencing one or two bill shocks. 

Another idea around this strategy would be to build a tool-based community both online and offline that can share best practices and ideas around business productivity, technology, and other topics around the context of work. Providing real-time reports on billings, deals, news, offerings, and other business opportunities can help create strong long-term relationships with clients and partners. Data centers should also provide real-time notifications on essential account activity or critical usage that clients should be aware of at any point.


5. Reward

Smaller providers also have the added boutique-experience edge of rewarding clients with highly-customized expressions of gratitude. Provide your customers with limited period bonus services every time they cross a certain usage level or criterion. Some bonuses can include a period of free services, free upgrades, a free limited subscription to an adjacent service, and many other ideas. The sky’s the limit when it comes to creatively rewarding loyal customers.

Where cloud services are going?

cloud services

There is a long list of cloud management software solutions. Still, as the need for more cloud-based services continues to grow with time, a portion of the market will start looking towards more easily accessible localized data centres that can deliver cloud services.

Providing cloud offering requires that smaller players provide clients with flexibility and on-demand access to support and education. Effectively monetizing cloud services can give another income-stream for data centers and solve sustaining operations for the many years to come.