Do the age old accounting calculations still hold true for off premise services regarding IT?  No they don’t.  You might ask…’But wait a minute, you can’t change profitability and margins just because you provide a Cloud based service.  Can you?’  Well the answer is, YES, if you do it right…  With over 1,200 partners in the Citrix Service Provider program today we have a pretty good idea about what works, what doesn’t work and where the money is.

To start with the mindset of a hosted set of applications (we call them Seamless Apps) or an entire Desktop (which we believe by definition includes applications) needs to be done with scale in mind.  By sharing pools of resources and increasing the scale of the offering, the associated costs can diminish.  The more custom/complicated the offering, the less the infrastructure, maintenance, service level agreements and support can be leveraged.  By creating an environment that allows the creation of “golden image” provisioning and management, margins increase with volume.

This is so very important for service providers who want to offer hosted apps and desktops.  Unfortunately the Managed Service Provider industry has not grown up with this mindset.  In fact, much of the revenues from this (older) model have come from operations steeped in professional services to handle all of the customization and complication of individual corporate off-premise IT.  While still a profitable business, many service providers are now asking, isn’t their a better way to scale my business.  Well Citrix has developed a comprehensive approach which takes into account shared resources in the data-center and the automation of service provisioning.

Check it out …. and increase your margins as you increase your volume.