The time to achieve positive Return on Investment is the foundation of every business decision. Investments can be made for strategic or competitive reasons, but eventually, those investments have to provide a positive return that can be measured monetarily. It is foundational in every business decision made. Over the past few weeks, we have been sharing some of the reasons why the Multapplied Networks’ SD-WAN is a best-in-class platform for Service Providers who rely on connectivity for service delivery. Obviously, performance, security, customer support, and flexibility are all critical. However, if the Return on Investment (ROI) isn’t there, or the time to positive ROI is too long, all those benefits are moot.
A Gartner study stated that by the end of 2019, 30% of enterprises will have deployed SD-WAN. Adoption of SD-WAN will accelerate as enterprises shut down their data centers to migrate to Cloud services and use SD-WAN to facilitate easy, secure access to Cloud. By 2025, Gartner forecasts that 80% of enterprises will have migrated to Cloud services. It’s likely that most organizations are already investigating both Cloud and SD-WAN. With 80% of enterprises expected to shut down their traditional Data Centers to migrate to the cloud by 2025, you’re most likely already looking into SD-WAN pricing and what will work best for you.
We believe that the SD-WAN pricing models in the market are overly complex and provide no real relief from traditional telecom tiered bandwidth pricing models. SD-WAN is supposed to simplify, but most competitor models don’t deliver on that promise and also don’t deliver on the cost-relief that end-customers expect.
The simplicity, clarity and positive ROI achieved through Multapplied’s SD-WAN pricing model has been a major reason that many service providers have adopted Multapplied for their SD-WAN platform.
Many of our partners have stories about how they were perplexed by the pricing models being offered by some of our competitors. Their stories are eerily similar. They start out simply enough; they contact the potential vendor for a price quote. After that, they are given a pricing formula that requires a statistical mathematician analysis to figure out what they will be paying each month.
One of our great partners, Mike Gach, VP of Sales at Tierzero, recently stated that the flat rate model used by Multapplied really made it easy to cost things, but referring to our competitor’s model, he said: “The other stuff we looked at was super confusing.”
That is the foundation of Multapplied’s pricing model. We believe in keeping it simple and scalable. Our model is based on a flat-rate monthly subscription that is based on a per-site or per-port fee that scales up or down on a monthly basis, depending on the growth of your customer base.
Multapplied’s pricing model provides the following benefits:
Delivering the Promise of SD-WAN
SD-WAN came into being to free organizations from the tyranny of proprietary hardware, software, and networks. Advances in processing speeds, software development, and the growth of Cloud services led to initiatives by major industry players such as Google and Facebook to reduce their hardware and maintenance costs by investing in software-defined networking that legitimized the Software-Defined world.
But somewhere along the line, SD-WAN providers went off-script and reverted to the standard networking and telecom model. They started creating parallel networks to the telecoms and manufacturing hardware. So now, with many of the hosted SD-WAN providers, you’re investing in a traditional proprietary telecom network combined with a proprietary hardware manufacturer and you’re paying pretty close to traditional, proprietary costs. No wonder that for many Service Providers and end-customers, the ROI of SD-WAN has been difficult to achieve.
But Multapplied’s model changes that and enables you to deliver on the promise.
Bring Your Own Hardware
Many SD-WAN vendors require you to use purchase their proprietary hardware. Mostly, this hardware is a standard white-box platform manufactured overseas that simply features a custom branded faceplate and software load. But at triple the price.
Proprietary hardware not only increases the cost of implementing SD-WAN for the end-customer but also goes against the whole principle of being “software-defined.” Not only are you locked into that vendor’s infrastructure, but you also have less control of the solution and are paying for a “software-defined-hardware-based” environment.
Multapplied Networks’ SD-WAN platform is hardware-agnostic. We are a truly software-defined platform that operates on any x86 white-box device. Buy your own boxes or manufacture them according to your specifications, you control the solution. Brand them if you wish, but it’s your brand in front of customers. If you want, deploy additional containerized software on the CPE – again, it’s your choice because it’s your solution.
Flat Rate, Subscription Pricing
Our pricing model is simple: a subscription-based monthly price per site or per-port. It doesn’t matter the bandwidth or feature sets being used. This means that you know, month-to-month, exactly what your cost will be and can determine end-customer pricing and margins knowing that changes in customer requirements don’t reduce your profitability or require customer explanations for the additional charges. Charging based on per-site (or per-port) monthly fees and NOT by the amount of bandwidth used. This structure helps our Partners manage their costs and match revenue and expense. Your costs don’t grow unless your revenues are growing!
Our partners love this model since it allows them to grow with predictability. When you bring on a new customer, costs start when they come online. Should a customer churn or reduce the number of sites they have with you, your monthly costs fall accordingly.
Multapplied Networks is a proven market leader offering SD-WAN solutions for service providers of all sizes. From a feature and ROI perspective, If you are nervous about upfront and ongoing costs of implementing an SD-WAN, relax, we got you covered.
By Logan Campbell
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