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TRENDSNAPSHOT
BY THE NUMBERS:
Boosting the Impact
of Cloud Service Commerce
Providers in a range of verticals—including VARs
and MSPs—are already selling cloud services to
increase customer retention, drive new revenue,
and position themselves at the forefront of
cloud innovation.
The MSPs that see the most success, however, focus on implementing
a series of key best practices. Read on to see how much these actions
can move the needle when it comes to the critical metrics that define
cloud service commerce success.
Boosting the Impact of Cloud Service Commerce
2
ABOUT APPDIRECT
AppDirect is the leading platform for selling, distributing, and managing cloud-based products and
services. Its flexible, modular technology enables organizations of all sizes to get to market quickly
and cost effectively with an offering that meets their individual business needs. AppDirect-powered
marketplaces, billing, distribution, reselling, and premium technical support services help providers—
including Comcast, ADP, Zendesk, Deutsche Telekom and others—connect more than 30 million
businesses to solutions from Microsoft, Google, GoDaddy, and more. AppDirect is headquartered
in San Francisco with 13 global offices.
For more information contact
info@appdirect.com
or visit www.appdirect.com.
650 California Street, 25th Floor
San Francisco, CA 94108
(877) 404-2777
Copyright © 2017 AppDirect Inc.
TRENDSNAPSHOT
The Comparative Advantages of Best Practices
Here are the best practices for selling cloud services, and the comparative advantages they can deliver.
Complement Your Existing Technology for Better Results
Many MSPs already have the technology assets and capabilities to start offering cloud services
and implement these best practices. The AppDirect platform can help you get to market quickly
and cost effectively by complementing your existing IT to help you meet your business objectives.
Visit www.appdirect.com to learn more.
Without Advantage With Advantage
1 PLATFORM INTEGRATIONS
Integrate your marketplace to unify service
delivery with existing backend systems. More unique visitors1X 3.7X
No. of subscriptions
per company
3 BUNDLES
Package marketplace apps with core
services and contracts. 1.1 3.3
Paying subscriber
conversion rate
2 ANCHOR SERVICE
Cross-sell a leading third-party service or
add-ons that integrate to your core offering. 0.1% 13.2%
Average payment
4 ASSISTED SALES
Enable your sales team with the right
tools and align them with incentives. $42 $139*
Marketplace monthly
churn rate
5 HUMAN ELEMENT
Offer premium tech support to assist with
activation, onboarding, and ongoing help. 2.5% 0.8%
		 Source: AppDirect research and marketplace aggregate data
	 *	Portion of increase in average payment size driven by increase in yearly versus monthly payments with a sales team

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By the Numbers - Boosting the Impact of Cloud Service Commerce (MSP)

  • 1. 1 TRENDSNAPSHOT BY THE NUMBERS: Boosting the Impact of Cloud Service Commerce Providers in a range of verticals—including VARs and MSPs—are already selling cloud services to increase customer retention, drive new revenue, and position themselves at the forefront of cloud innovation. The MSPs that see the most success, however, focus on implementing a series of key best practices. Read on to see how much these actions can move the needle when it comes to the critical metrics that define cloud service commerce success.
  • 2. Boosting the Impact of Cloud Service Commerce 2 ABOUT APPDIRECT AppDirect is the leading platform for selling, distributing, and managing cloud-based products and services. Its flexible, modular technology enables organizations of all sizes to get to market quickly and cost effectively with an offering that meets their individual business needs. AppDirect-powered marketplaces, billing, distribution, reselling, and premium technical support services help providers— including Comcast, ADP, Zendesk, Deutsche Telekom and others—connect more than 30 million businesses to solutions from Microsoft, Google, GoDaddy, and more. AppDirect is headquartered in San Francisco with 13 global offices. For more information contact info@appdirect.com or visit www.appdirect.com. 650 California Street, 25th Floor San Francisco, CA 94108 (877) 404-2777 Copyright © 2017 AppDirect Inc. TRENDSNAPSHOT The Comparative Advantages of Best Practices Here are the best practices for selling cloud services, and the comparative advantages they can deliver. Complement Your Existing Technology for Better Results Many MSPs already have the technology assets and capabilities to start offering cloud services and implement these best practices. The AppDirect platform can help you get to market quickly and cost effectively by complementing your existing IT to help you meet your business objectives. Visit www.appdirect.com to learn more. Without Advantage With Advantage 1 PLATFORM INTEGRATIONS Integrate your marketplace to unify service delivery with existing backend systems. More unique visitors1X 3.7X No. of subscriptions per company 3 BUNDLES Package marketplace apps with core services and contracts. 1.1 3.3 Paying subscriber conversion rate 2 ANCHOR SERVICE Cross-sell a leading third-party service or add-ons that integrate to your core offering. 0.1% 13.2% Average payment 4 ASSISTED SALES Enable your sales team with the right tools and align them with incentives. $42 $139* Marketplace monthly churn rate 5 HUMAN ELEMENT Offer premium tech support to assist with activation, onboarding, and ongoing help. 2.5% 0.8% Source: AppDirect research and marketplace aggregate data * Portion of increase in average payment size driven by increase in yearly versus monthly payments with a sales team