Cohesity introduces consumption-based pricing for service providers
Cohesity, a provider of unstructured data management solutions that address the problem of mass data fragmentation in enterprises and mid-size organisations, is strengthening its service provider (SP) offering with consumption-based subscription pricing for its full suite of data management services covering backup and recovery, archiving, file shares, object stores, dev/test and analytics.
The introduction of a pay-per-use model, whereby SPs only pay for the data management services they use each month instead of committing to set blocks of capacity in advance, gives Cohesity’s 100 MSP partners, including M247, Iomart and Vanquish Tech in the UK, more flexibility, predictable pricing and lower operating costs.
For Martin Smith, Cohesity UK and Ireland Partner Manager, this represents a significant enhancement to what is still a relatively new part of Cohesity’s business – albeit a fast growing one, with a 100% increase in service provider revenue between Q1 and Q2 of FY2020 and an 87% increase between Q2 and Q3.
“October 2018 was when we really began our offer for Service Providers (SP), so it’s been an incredibly fast-paced evolution,” he said.
“After consultations with our SP community, we’ve invested significantly into building a platform that’s both innovative and drives simplicity and reduces costs for customers. The scale and the efficiencies of the platform are big factors in why we are chosen over our rivals. This is primarily because of our capabilities with deduplication and cross-tenant deduplication and compression. We have a low upfront investment in our service provider model, so SPs don’t have to buy lots of boxes to get a lower per-Terabyte cost. As they add tenants and capacity, they do so as and when they need.
“What we’ve launched recently is a value-add that improves profitability and is easy to use; that’s something every SP is looking for.”
Smith adds that the introduction of pay-per-use financing will bring Cohesity into play with more established rivals and allow SPs to be more responsive to customer needs.
“The reality is that software costs need to be fine-tuned for demand, and not forecast over three years. Given what the world has just been through and in some corners continues to go through, it’s clear that there are many unforeseen factors that will drive up and, in some cases, reduce need for cloud spend. It just allows SPs to be more responsive to their customers’ needs and the market, without a huge CAPEX cost, without overprovisioning and without lengthy procurement procedures.”
It will also make Cohesity a more attractive option as it seeks to recruit more service providers.
“We have over 100 service providers working with us now – in under two years. And we are not stopping there. I would say our goal is quality over quantity. Some of the legacy suppliers of backup, for example, have tens of thousands of SPs on their books. That isn’t scalable; it doesn’t create market differentiation properly. We are looking for players with good reach, perhaps specialists in vertical segments, such as financial services, healthcare and professional services. And not only those that service enterprise-scale organisations, as we’ve got a great offer for midsize business too. Across Europe, we’ve just signed up several more big players in June, and you’ll likely see more announcements coming through on this in the next few months.”