Category Archives: Case Studies

Cincinnati Bell Launches Cloud Services With Apptix and Parallels

Cincinnati Bell (NYSE: CBB) today announced in a press release the expansion of its portfolio of telecommunications and IT services for businesses with the addition of cloud-based Microsoft® Communication and Collaboration Solutions powered by hosted business services provider Apptix® (OSE: APP) and Parallels, the leading provider of cloud service delivery software. These new solutions will allow Cincinnati Bell to more effectively serve small & medium businesses, as well as key industries including healthcare, government, and education.

 

According to the 2012 Parallels SMB Cloud Insights™ report, businesses are increasingly turning to cloud solutions such as hosted communications and collaboration services. In the past year, it is estimated that more than one million SMBs in the United States have started using some form of cloud services.

 

“Purchasing and maintaining software and hardware can be daunting and expensive for many SMB customers,” said Stuart Levinsky, General Manager of Cloud Computing at Cincinnati Bell. “Cloud Solutions from Cincinnati Bell allow businesses to focus on what’s important to them – their customers – while letting us do the heavy lifting to provide a proven, reliable communications network and the top cloud-based services available anywhere.”

 

Cincinnati Bell’s new Cloud Solutions – including hosted Microsoft Exchange email with mobile synchronization and hosted Microsoft SharePoint – keep employees connected on the go, enhance productivity, and reduce the cost of IT services. Optional archiving and compliance features help businesses meet stringent regulatory requirements, such as HIPAA, PCI, FRCP, and SOX.

“We’re pleased that Cincinnati Bell selected Apptix to support their strategic move into the cloud,” said David Ehrhardt, president and chief executive officer of Apptix. “Our partner program reflects Apptix’s extensive experience in the hosted services market, providing everything our partners need to successfully transition into the cloud market. Apptix offers our channel partners flexible business models, diversified solution offerings, and dedicated sales, marketing, and support resources and staff to fast-track their revenue growth from cloud-based solutions. ”

 

“Cloud services represent a significant growth opportunity for communication service providers such as Cincinnati Bell,” said Birger Steen, CEO of Parallels. “We are pleased to join with our valued partners Cincinnati Bell and Apptix and as they use Parallels Automation to rapidly syndicate and deliver cloud services.”

 

For more information about Cincinnati Bell’s new Cloud Solutions for business customers, visit www.cincinnatibell.com/cloud.

Case Study: KT creates new revenue model with cloud services powered by Parallels Automation

 

This case study is part of series conducted by Parallels that examines how Parallels partners are optimally using our products.  For a complete copy, click here [PDF].


Partner Summary

 

KT is Korea’s largest communication service provider, delivering voice and data, fixed and mobile, and communication and broadcasting services. In 2010, it also formed a new division to deliver colocation and managed hosting services out of KT’s Internet Data Center and to look into cloud computing as a strategic new business for the company. 

 

Business Situation

 

In recent years, competition from a new breed of internet-based voice providers such as Google Voice and Skype has been putting pressure on traditional voice revenues for telecommunication services providers such as KT.

 

In response, KT announced in 2010 that cloud computing would be a major new business model for the company and unveiled the “ucloud” brand for its cloud services. The next challenge was to quickly put into place the capability to deliver cloud-based software and infrastructure services to customers in Korea, in particular over 3 million small and medium businesses (SMBs) in the country.

 

Solution

 

In September 2011, KT made the decision to adopt Parallels Automation (PA), which would enable it to rapidly deploy cloud services to SMBs efficiently and cost-effectively.

 

Parallels Automation consists of two core systems – Parallels Operations Automation and Parallels Business Automation. In addition to these core systems, specific PA modules are also deployed depending on the services being offered.

 

Parallels Operations Automation provides end-to-end automation for cloud services provisioning, server and application management, service plan creation and management, end user self-service, and reseller management. Parallels Business Automation simplifies end user ordering, account management, billing, billing system integration, invoicing, and trouble ticketing. 

 

With Parallels Automation as its service delivery platform, KT can easily extend its service portfolio with offerings such as ucloud backup and ucloud storage. 

 

To address Software-as-a-Service (SaaS) opportunities, the Parallels Automation SaaS module enables KT to automate application deployment, updating, and recurring billing, so that it can quickly and easily offer SMBs a broad choice of open source and licensed commercial SaaS applications.

 

For example, KT has been appointed the sole syndication partner for Microsoft Office 365 in Korea, and using PA enables the company to rapidly provision and deliver the Office 365 suite of services to its customers and channel partners. With Parallels Automation, KT can also create a customized marketplace of hundreds of SaaS applications from leading independent software vendors, which can then be delivered by its channel and resell partners through their own white-labeled stores.

 

Benefits

 

The deployment of the Parallels Automation platform is critical in helping KT achieve its leadership position in the cloud and to strengthen its IaaS and SaaS offerings.

 

Creates new revenue streams

 

Parallels Automation enables KT to offer SMBs enterprise-class applications with subscription plans that scale from individuals to thousands of end users. These applications can generate net new customers, as well as increase both average revenue per user (ARPU) and customer retention, as customers rely on KT for additional value added services.

 

“There are a number of SMB customers in Korea who have been waiting for critical business applications that are easy to subscribe to with no upfront costs. Being small and nimble, they do not want to worry about updates and software maintenance,” said Hyeon Kyu Lee, vice president, Advanced Platform & Software Business Center of KT. “Parallels Automation enables KT to address this critical business need, and takes it a step further by enabling our reseller partners to offer their own independent private label cloud storefronts.” 

 

Reduces time to market

 

The Parallels SaaS module helps KT bring new applications and cloud services to market quickly. It comes with a go-to-market kit that includes service plan templates and messaging directed at SMBs, plus control panels that simplify support by letting KT delegate control to end users.

 

“Our customers are looking forward to leveraging products in the cloud from the likes of Microsoft, and our partnership with Parallels enables us to quickly implement a solution that delivers swift provisioning and billing of the Office 365 platform,” said Lee.

 

Case Study: Leading Australian web hosting provider Net Logistics builds up new revenue streams with Parallels Plesk Panel and Parallels Virtuozzo Containers

 

This case study is part of series conducted by Parallels that examines how Parallels partners are optimally using our products.  For a complete copy, click here [PDF].

 

Partner Summary 

 

Net Logistics is a leading web hosting service provider in Australia with over 6,000 customers. It offers flexible, easy-to-use and affordable solutions tailored to companies ranging from small businesses to large enterprises.

 

Net Logistics started out by providing shared hosting services, then organically expanded into reseller hosting and then to Virtual Private Server (VPS) and dedicated server hosting as customers demanded more of such services. Today, 60 per cent of its revenues come from VPS/dedicated servers. Another key segment is the developer and reseller market for white label offerings, which today makes up about 30 per cent of its customer base.

 

Customer support, both pre-sales and post-sales, is a key focus for Net Logistics, said Joseph Salim, Business Development Manager. The company has about 50 employees, with over 20 involved in back-end support. One of its core value propositions is the fact that it has its “hands on the ground”, providing customers with direct access to technical expertise within the company. This has helped strengthen the company’s reputation for customer support excellence, with high positive ratings in forums such as Whirlpool.

 

Business Situation

 

In 2008, the commoditization of shared hosting led to lower profitability for this segment of the business and presented a significant business challenge to Net Logistics. In response to this, the company began looking into opportunities in the reseller hosting market as well as the VPS and dedicated server hosting market where it could differentiate itself with customized managed services. At the same time, the company also sought to increase its average revenue per user (ARPU) by providing scalable solutions to its customer base. 

 

“VPS was identified as a key part of Net Logistics’ strategy to move upstream. As we moved up the hosting value chain, it was also imperative for us to maintain or even enhance our customer support standards, and continue to provide customers with fast resolution of any issues that they may encounter,” said Karthick Rajendran, Managing Director, Net Logistics.

 

Net Logistics also had to rein in operating costs and to adopt a more environmentally friendly approach to doing business. In particular, it was looking to optimize the use of its infrastructure in order to reduce power consumption, which is a relatively high cost component from both the monetary as well as the environmental perspective.

 

Solution

 

To address these business challenges, Net Logistics was looking to deploy a server control panel and automation solution together with a virtualization tool that would enable it to manage its infrastructure and provision upstream services more efficiently. After evaluating several options, it decided to go with Parallels Plesk Panel and Parallels Virtuozzo Containers (PVC). 

 

“We chose Parallels for its depth of experience in delivering solutions finely tuned to the needs of a hosting business model,” said Salim. 

 

While Net Logistics also evaluated virtualization solutions such as Xen and VMware, it decided on PVC because of its seamless integration with Parallels Plesk Panel. This integration would make it easier for Net Logistics to manage and monetize its infrastructure. Said Salim, “One of the best reasons for working with Parallels is the total stack of products that helps us to configure and bundle products. There is one vendor to work with unlike with Xen or VMware. This makes it simpler and easier to do business.” 

 

Parallels Plesk Panel is a sophisticated control panel tool which assists Net Logistics in web hosting account and server management. It includes complete, cost-effective control panel technologies designed for hosting accounts as well as for reseller, VPS and dedicated server platforms. Complementing the deployment of Parallels Plesk Panel is the PVC virtualization software which enables Net Logistics to offer greater support efficiency and implement effective backup solutions in mission-critical environments.

 

In Parallels, Net Logistics also found a partner with a common approach towards customer service and support. This synergy gave Net Logistics added confidence in going with Parallels Plesk Panel and PVC. “We need to be able to trust the vendor to provide support when needed,” said Salim. “With Parallels, support becomes much easier. We know that we can escalate any issue and have it resolved very quickly.” 

 

Benefits

 

The deployment of the Parallels Plesk Panel and PVC has enabled Net Logistics to deliver intuitive hosting services to the Australian market efficiently and cost-effectively.

 

Introduction of new revenue streams

 

With the deployment of Parallels Plesk Panel, Net Logistics is now able to deliver profitable services easily and offer its customers a quick and easy way to create and manage web sites as well as server resources. It has enabled Net Logistics to grow its VPS business from scratch three years ago, to make up 40 per cent of its customer base today. 

 

“Over the past 12 months, 60 per cent of all new customers have been buying VPS,” said Salim. Parallels has also helped Net Logistics to create greater awareness of its offerings, by providing it with opportunities to participate in events such as the Parallels APAC Summit and the global Parallels Summit. 

 

Enhanced customer support 

 

With Parallels Plesk Panel providing reliable administrative support for wide range of web hosting scenarios, Net Logistics has been able to provide better customer support without having to incur high manpower overhead.

 

“Parallels Plesk Panel provides a powerful, impressive solution to ease hosting account administration across the full range of shared, reseller, VPS and even dedicated solutions. We are now able to offer our current and prospective customers better management and higher reliability as well as being cost effective and highly profitable,” said Salim. 

 

Reduced costs

 

Net Logistics has deployed PVC to virtualize its entire infrastructure, including its dedicated servers. This has resulted in an estimated 30 per cent savings in power consumption. 

 

“Power consumption is a significant cost component in our operations. The deployment of PVC to virtualize our infrastructure addresses this by allowing us to make more efficient use of our infrastructure resources, thereby reducing power consumption and enabling us to adopt a more environmentally sustainable approach to doing business,” said Trung Nguyen, Finance Director, Net Logistics. 

 

At the same time, Parallels Plesk Panel comes with an easy-to-use and powerful management tool that reduces the need for Net Logistics to deploy costly manpower to optimize and manage its IT infrastructure, for example, to handle tasks such as patch management.