Inframon translates its expertise in on-premises datacenter management to customer cloud migration and management through the Microsoft CSP program
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To take advantage of the range of business opportunities related to cloud computing, Inframon translated its expertise in on-premises datacenter management to migrating customers to the Microsoft Azure cloud platform and managing their environments through the Microsoft Cloud Solution Provider (CSP) program. In three years, Inframon opened new niche markets, expanded its business by 150 percent, increased profit margins by 40 percent, and more than quadrupled its average deal size.
Ever since its founding in 2005, Inframon has used the same strategy to gain market share: align its core strength in datacenter optimization with strategic Microsoft technologies. Initially, the company established a reputation for its proficiency with Microsoft System Center data management solutions. As System Center solutions evolved, Inframon used the new capabilities to deploy and manage private clouds for customers. Then Microsoft introduced Azure, its cloud platform. What had been a steady progression for Inframon suddenly began to feel like a revolution.
“The advent of the cloud was a pivotal point in IT,” says Gordon McKenna, Chief Technology Officer at Inframon. “To ride the wave of this revolution, we had to quickly differentiate ourselves with managed services in the cloud. Our datacenter management expertise became our niche service in the cloud, delivered on the Azure platform.”
In 2015, Inframon became one of the first Microsoft partners in the United Kingdom to join the Microsoft CSP program. This move signaled the end of doing business as a systems integrator, offering technical solutions on a project-by-project basis, and ushered in a new era of going to market as a leading “Azure in CSP” managed services provider.
“We consider Azure in CSP a game-changer,” says McKenna. “Customers wanted to migrate from their datacenters to the cloud. We already had that expertise. But customers also needed a vendor to manage their cloud environments, so they could focus on driving their business. We’ve got that expertise as well. Using Azure in CSP, we put it all together with our Hyper Cloud Platform, where we migrate customers to the cloud and manage their environments on a pay-as-you-go basis. Through Azure in CSP, we have a seamless way to deliver a very secure, well-governed cloud to a customer through one monthly payment that covers the customer’s Azure resource consumption and our services. We’ve never looked back.”
Improved profit margins
Today Inframon operates with a new, inherently more profitable business model, resulting in better profit margins. Instead of compensating its consultants for time spent in the field, Inframon now rewards them for delivering projects early by using Azure innovations and automation. Time to market for projects is steadily decreasing.
“As a systems integrator, we had a static profit margin. To increase revenue, I had to hire more consultants,” says McKenna. “After becoming an Azure in CSP partner and offering managed services in the cloud, we’ve gained a profitable business model. We have grown 150 percent and our profit margins are up by 40 percent. That’s because revenue generation is less tied to headcount and more dependent on consultants using the Azure platform to innovate and automate our services for customers.”
Increased deal size
Inframon also links its accelerated revenue generation to the additional value it now can provide enterprise and large mid-market customers. Migrating a customer to the Azure platform and then offering ongoing management increases opportunities to add more services over time.
“We use Azure in CSP to expand our footprint with our customers,” says McKenna. “We’ve gone from refreshing customers’ technology every three years to refreshing their cloud services every three months, so there are lots of opportunities to upsell,” says McKenna. “Since joining the CSP program, our average deal size has grown by more than 300 percent.”