By Jeffrey Burt
A company with a strong presence in Israel and the rest of the Middle East is expanding its white-label cloud infrastructure service globally, looking to gain traction in a crowded market based on the strength of its 13 data centers in four regions around the world.
CaaB (Cloud as a Business) says it already owns about 40 percent of the domestic market in Israel – where it’s based – and has grown in other parts of the Middle East. Now the company is pushing into the larger global market and already has partners in the United States, Canada, England, France and Australia, according to Mor Mordchaev, CaaB’s partners channel director for global markets.
CaaB, which is part of the OMC Group, has more than 150 partners across the globe. The company gives MSPs, resellers and hosting firms access to its data centers in North America, Asia, Europe and Africa/Middle East, enabling them to offer cloud solutions to end customers without having to invest in their own infrastructure.
“Essentially what we do is we give them the ability to leverage our infrastructure, our technology, our capabilities and brand as their own company and sell those cloud services in their respective markets all around the world,” Mordchaev told Channel Futures.
Through CaaB, partners get access to flexible and scalable cloud services that they can use as the basis for their own cloud offerings or to complement the reseller programs they already have in place with such major public cloud providers like Amazon Web Services (AWS), Microsoft Azure and Google Cloud Platform, an important consideration at a time when enterprises increasingly are adopting multicloud strategies by leveraging more than one cloud provider.
White-label cloud service providers have been around for several years, with such names as Lume Technologies, NewCloud Networks, Awesome Cloud Services and Evolve IP. The top cloud players also let partners leverage their infrastructures to bring cloud services to end users.
Paul Teich, principal analyst with Liftr Cloud Insights, told Channel Partners that offering MSPs and other partners white-label cloud services is a “time-honored tradition,” even for larger vendors, noting that Chinese IT giant Huawei operates cloud services for a number of telecommunications companies. Channel companies need to get into the cloud given that’s where their customers are going and for many, the key is scale, Teich said.
“Operating costs decline asymptotically with scale, so at a certain point getting a little more margin out of purchasing and operating data centers at scale takes adding a lot of infrastructure,” he said. “White-label clouds get those additional points of operating margin and enable their customers to offer cloud services for competitive costs without those customers having to play the scale game. So, for smaller MSPs with no hope of competing on low costs with the big public clouds, white-labeled cloud enables them to offer competitive and perhaps differentiated cloud services without investing in cloud infrastructure and cloud IT operations.”
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