How MSPs CAN Make Money Selling Microsoft Azure
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Protect and Profitably Move On-Prem VMs to Azure
In a recent webinar, experts from Axcient and Nerdio shared their insights on how MSPs can effectively move on-premises virtual machines (VMs) to Azure while optimizing costs and protecting margins. The discussion between Leif Fortson, Director of Product at Axcient, and Marcos Artiaga, Sales Engineer Lead at Nerdio, highlighted the growing trend of Azure adoption, the challenges MSPs face, actionable strategies to overcome these hurdles, and provide a demo of Axcient’s current capabilities. Keep reading for a summary of key takeaways and a roadmap for MSPs navigating the Azure ecosystem.
Watch the Webinar: Move and Protect On-Prem VMs to Azure and Retain Your Margins
The Shift to Azure
The transition to cloud services has been accelerating for years, driven by the need for scalability, compliance, and reduced reliance on traditional data centers. The digital transformation accelerated the need for remote work solutions, prompting many MSPs to migrate their clients to cloud-based platforms like Microsoft 365. This shift reinforced the importance of leveraging Azure’s capabilities to support distributed workforces and modernize IT environments. Microsoft Azure has emerged as a top choice for MSPs due to its global reach, extensive features, and ability to support today’s workloads. According to a survey of nearly 250 Axcient MSP partners:
- 98% of respondents currently use Azure deployments.
- 94% predict Azure usage will grow by 5-10% within the following year.
- 53% are backing up Azure data.
The main drivers for Azure adoption include flexibility (68%), scalability (61%), and reliability (55%). However, barriers include cost (54%), a lack of perceived need (46%), and respondents who are not aware of it or don’t know how it works (24%). While 53% are backing up Azure for disaster recovery and business continuity (97%), cybersecurity insurance (46%), and compliance (45%), 29% are not backing up Azure because they don’t think they need it (29%), it’s cost-prohibitive (23%), or they’re not aware of it (22%). Not backing up Azure poses significant risks to the data within Azure and its reliability during and after a cyber incident.
Challenges in Azure Adoption
Despite its advantages, Azure adoption isn’t without challenges. Cost is a recurring concern for MSPs, with the primary factors being egress fees and VM compute expenses. In the webinar, Leif and Marcos emphasized that many MSPs doubt they can make meaningful margins on Azure services. This perception often stems from insufficient awareness about available cost-saving measures and tools. Common barriers include the following:
- Egress Fees: Data transfer out of Azure incurs fees, which can discourage MSPs from adopting the platform entirely.
- Complexity: Managing Azure’s extensive feature set can be daunting without the right tools.
- Perceived Cost-Prohibitive Nature: Many MSPs mistakenly believe Azure’s pricing model makes it unsuitable for their clients.
To address these challenges, Axcient and Nerdio provide solutions to make Azure adoption more accessible and profitable for MSPs.
Four Strategies for MSPs to Make Money Selling Microsoft Azure
#1 Leverage Nerdio Manager for MSP
Nerdio Manager for MSP is a comprehensive platform that simplifies Azure management and enhances cost efficiency so MSPs can make money selling Microsoft Azure. It helps MSPs by…
- Automating VM scaling, particularly for Azure Virtual Desktops (AVD), based on usage patterns. By dynamically adjusting resource allocation based on demand, MSPs can significantly reduce costs while maintaining performance.
- Offering the Nerdio Cost Estimator, a user-friendly alternative to Microsoft’s Azure pricing calculator that allows MSPs to estimate compute and licensing costs better for maximum margins.
- Identifying opportunities for cost savings through reserved instances and hybrid benefits as outlined below.
#2 Become a CSP Reseller
Most MSPs are already doing this today, so whether you are an indirect or a direct customer success platform (CSP), you should get some type of discount or incentive for being that reseller. Typically, on Azure consumption, you may get 8-10%, and on your Microsoft 365 licensing, you may get 15-18%. That’s a quick win that doesn’t take a lot of effort.
#3 Maximize Reserved Instances and Savings Plans
Reserved instances offer discounts of up to 70% of VM compute costs when MSPs commit to a specific term (e.g., three years). While this may seem risky for MSPs offering month-to-month agreements, Marcos explained that the return on investment (ROI) can be achieved in just 2.5 months, even with early termination fees – although Microsoft does not currently charge for early termination.
Savings plans offer slightly lower discounts, around 30-40%, but they provide greater flexibility by allowing usage across different Azure regions and VM types where reservations are specific to a VM family and put into a particular Azure region. MSPs can choose the best option based on their clients’ needs.
#4 Take Advantage of Azure Hybrid Benefits
This often-overlooked program allows MSPs to save 40-50% on Windows Server licensing costs by using existing on-premises licenses in Azure. Instead of renting licenses per hour, MSPs can purchase subscriptions through CSPs.
#5 Auto-Scale
Nerdio enables MSPs to implement auto-scaling for Azure VMs, particularly Azure Virtual Desktop (AVD) environments. By dynamically adjusting resource allocation based on demand, MSPs can significantly reduce costs while maintaining performance.
Enhancing Azure Data Protection with Axcient
Data protection is a critical consideration for MSPs managing Azure environments. Axcient’s x360Recover platform provides robust backup, business continuity, and disaster recovery solutions tailored for Azure VMs. While Axcient currently offers x360Recover Direct-to-Cloud (D2C) for Microsoft Azure for rapid recovery and business continuity in the public cloud, the following product developments are currently being worked on and will be released in 2025.
- Azure Recovery Wizard: A simplified process for restoring Azure VMs, eliminating the need for a virtual hard disk export and complex manual steps to upload it. With point-and-click usability, the Wizard will hold your hand throughout the process and natively restore to your Azure tenant, making it easy to implement and execute.
- Egress Fee Elimination: Axcient is working on solutions to absorb egress fees, making Azure backups more cost-effective for MSPs.
- Azure File Share Protection: Axcient plans to launch a solution to back up Azure file shares via UNC file paths, addressing a significant gap in the market. Leveraging NAS backup protection, Axcient will make it easier to restore, recover, and reduce the cost-prohibitive barriers to Azure adoption.
Best Practices: How MSPs Can Make Money Selling Microsoft Azure
MSPs must be strategic in their service offerings, deployments, and client guidance to maximize Azure’s benefits and address common challenges. The following best practices can fuel your cost optimization strategies for maximum success.
- Educate Clients: Communicate the risks of not backing up Azure data by discussing recovery time objective (RTO) and recovery point objective (RPO) as they relate to downtime for client businesses. Many clients assume Microsoft provides comprehensive data protection, but it’s ultimately your responsibility as the MSP to ensure data integrity.
- Utilize Available Tools: Use Axcient’s RTO Calculator to estimate the ETA for different system recovery processes based on internet speed and the amount of data being restored. Take advantage of Nerdio’s cost calculator and management features to streamline operations and reduce expenses.
- Adopt a Proactive Approach: Regularly assess Azure deployments for opportunities to optimize costs, improve performance, and address emerging needs.
- Implement Comprehensive Backup: Protect Everything with Axcient’s all-in-one solutions designed to maximize productivity by simplifying BCDR data management with automation, innovation, and built-in, always-on cybersecurity features.
Ready to Start Moving and Protecting?
The future of Azure in the MSP space is bright, with adoption rates expected to grow steadily. For MSPs, moving on-prem VMs to Azure is more than just a technical migration – it’s an opportunity to build scalable, secure, and profitable cloud practices. By leveraging the strategies and tools discussed in the webinar, MSPs can overcome cost challenges, protect client data, and position themselves as trusted advisors in cybersecurity and business continuity.
To learn more, explore Nerdio’s and Axcient’s solutions to discover how they can help MSPs make money selling Microsoft Azure. Check out the webinar below to see a demo of Axcient’s Azure capabilities and hear directly from the experts. Stay tuned for more Events and Activities to learn about new feature launches and product development.
Your MSP’s next steps to make money selling Microsoft Azure:
- Watch the Webinar: Move and Protect On-Prem VMs to Azure and Retain Your Margins
- Visit the Axcient x360Recover D2C for Microsoft Azure webpage
- Explore Nerdio Manager for MSP
- Start a no-cost trial of x360Recover D2C for Microsoft Azure
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