Reseller Hosting – What Does it Entail and What Can You Expect?

Infrastructure-as-a-Service (IaaS) solutions such as dedicated servers, private and public cloud infrastructure, block storage solutions, with DDoS protection may offer the foundation for the provision of reseller hosting services. Although we commonly refer to it as reseller hosting, some reseller hosting clients might feel that the term is somewhat inaccurate for their business and their use cases. This is because reseller hosting services are often integrated into a wide range of other products and services that can be offered as unique new solutions. In this article we will stick to the term reseller hosting anyway, mainly because it is a commonly used and well-known term in the market.

It’s usually the somewhat larger providers of IaaS solutions, such as Zumiv, that are able to provide IT channel partners with the best fitting reseller hosting services. As a reseller of the IaaS solutions, it allows channel partners to benefit from scale while enabling them to provide white-label hosting services at limited upfront investment cost. It also allows them to set their own prices, resell these services as such and generate additional revenue, or seamlessly integrate these IaaS solutions into unique total offerings.

Executive Summary

Reseller hosting offers a variety of business advantages, such as increased revenue, cost reductions, and integration into other products and services. Reseller hosting also offers the advantages of economies of scale, the chance to broaden a product offering, potential for distinctive branding, access to excellent engineering support, and availability of a solid network backbone. An IaaS provider delivering reseller hosting services must be able to provide a high-quality network backbone with a smart architecture, infrastructure scalability, high quality hardware, and expert engineering support to meet the needs of reseller hosting clients. Customers of reseller hosting services may expect high levels of engineering assistance with lightning-fast engineering support 24/7 as well as discounts from their IaaS provider to make it economical for them to resale and integrate IaaS products into other solutions.

Both the IaaS provider and the IT channel partner may profit from reseller hosting services, which can be utilized by various user types and for a variety of applications. Reseller hosting services give MSPs and systems integrators for example the chance to concentrate on the areas where they can make a difference while leaving the infrastructure-related aspects of their data center environment in the hands of third-party professionals. Reseller hosting enables web design & development companies to offer a full end-to-end online solution without having to spend money on server hardware and software upkeep.

Business Benefits of Reseller Hosting

A reseller hosting package offers a variety of business advantages to companies that purchase these plans. No matter the exact use, it typically can offer buyers the following advantages.

Increased Revenue – Reseller hosting plans may give businesses a fresh stream of income. Companies may make additional money from it without requiring investments in data center space, server hardware, networking and accompanying hosting infrastructure services. Additionally, they are spared the expense of investing in the engineering expertise, personnel, and resources needed to deliver hosting services complementary to their main products and/or services being offered.

Cost Reductions – Deploying and maintaining multiple servers yourself as a business might be more expensive than utilizing reseller hosting solutions. By purchasing server infrastructure including engineering support from a large IaaS provider and market it yourself through reseller hosting services, you can usually benefit from economies of scale. Also, when it comes to utilizing network bandwidth, for example. Zumiv has a global redundant network backbone with 10Tbit/s of bandwidth available and only 45% utilization, but for most parties, in-house development of such a network backbone is quite complicated and certainly too cost intensive. Reseller hosting may offer the cost reductions needed to enhance profitability.

Expanded Product Portfolio – Another great advantage of employing a reseller hosting plan for an IT channel organization is the expansion of its product line. By adding IaaS solutions to its portfolio, a channel organization may increase the range of products it offers and the value it provides to customers. When adding hosting services to the software systems predominantly sold by a channel company, for instance, the company may provide its customers with a one-stop shop by delivering both the software and hosting services required to operate it. By doing so, the channel firm may increase customer retention and create new revenue streams.

Unique Branding Opportunities – By enabling IT channel companies to provide hosting services under their own brand and with their own distinctive branding and marketing, reseller hosting packages may give them improved branding and revenue prospects while they can rely and fall back on the IaaS provider’s engineering expertise. This can help companies develop a reputation as a reliable provider of hosting services while boosting client retention. Additionally, it enables channel companies to provide clients with unique and highly customized hosting plans for specific niches. It gives them the freedom to configure and provide custom hosting solutions under their own brand name which may address the unique requirements of their clients, for example within specific verticals.

Access to Top-Notch Engineering Support – By giving access to reliable support systems and skilled engineering teams, reseller hosting packages delivered by an IaaS provider may increase engineering support levels and ultimately end customer experiences for the clients of IT channel organizations. A reseller hosting plan usually includes round-the-clock engineering assistance, which may aid companies in effectively and rapidly resolving technological difficulties, provided the IaaS provider delivering these reseller hosting plans has a positive reputation for engineering expertise and speed in handling technical questions and resolving potential issues.

What to Expect
1. Available Network Backbone

A truly critical aspect of the infrastructure deployed and provided by an IaaS provider to reseller hosting clients is the quality of the network backbone. The network’s quality is actually a key component of the infrastructure that an IaaS provider offers. The network must be fast, redundant, and reliable, while able to meet all requirements set by reseller hosting clients including for example high network availability and unforeseen network peak load.

To guarantee that the network is highly available and capable of providing resources swiftly and effectively, also during peak loads, the IaaS provider must have designed a smart architecture with smart routing including network points-of-presence (PoPs) spread across various geographic locations – to safeguard the network from cyberattacks and other security risks. An IaaS provider must also have a strong security architecture in place, including firewalls, intrusion detection systems, and other security measures.

As a leading worldwide IaaS supplier, Zumiv has its dedicated servers, cloud infrastructure offerings, DDoS protection, storage infrastructure, and other IaaS solutions backed by its proprietary 10 Tbit/s network backbone with only 45 percent of network bandwidth utilization. It guarantees reseller hosting clients and other customers using our backbone ultimate scalability and DDoS protection.

2. Scalability, Hardware, and Expert Technical Support

A scalable infrastructure that can expand and alter as the demands of reseller hosting clients change is also a prerequisite for an IaaS provider delivering reseller hosting services. To satisfy reseller hosting client demands, an IaaS provider must be able to quickly deploy additional hardware, network resources, and accompanying IaaS services if needed. Customers of reseller hosting should pay special attention to this as it’s anticipated that their hosting needs will change and develop over time as their companies evolve and expand.

Another important aspect of the infrastructure provided by an IaaS provider to reseller hosting clients is the quality of the hardware being used. The servers, network equipment, and storage systems must be quick and reliable, preferably from top brands. If the hardware should malfunction or function slowly, the reseller hosting services would be at risk of performing poorly, which might cost them clients in the end and hurt their reputation. So, using top-notch hardware for reseller hosting services really is a no brainer. At Zumiv, we currently use server and network hardware brands including Dell, Fujitsu, and Arista, which enables us to provide optimal quality for our IaaS customers including reseller hosting clients.

Customers of reseller hosting services often also expect a high degree of technical assistance from their IaaS provider. Professional technical technical support should preferably also be delivered as quickly as possible in the event of end-customer questions or issues, to avoid those end-customers becoming dissatisfied or burdening the IT channel partner with inquiries which the company might not be able to handle or be knowledgeable about. Customers often demand access to this technical expertise 24/7, by phone, email, and live chat, to satisfy their ultimate needs. Such expert technical assistance can be crucial to ensuring the smooth operation of their IT business and offerings and the prompt and efficient resolution of any potential issue.

Zumiv is striving for extremely high levels of client satisfaction at all times for reseller hosting clients and others, enabling the engineering teams in our data centers to reply in an average of 7 minutes and to handle technical questions and issues around-the-clock at lightning speed. Of course, any business will claim to offer the finest assistance, but we setup an NPS (net promoter score) to assess how our customers including reseller hosting partners felt about us, and the results speak for themselves. With a stringent US-based NPS methodology, we are achieving a market leading client satisfaction score of 70 (May 2023).

3. Reseller Hosting Discounts

Customers buying reseller hosting services often also anticipate discounts to make it economical for them to resale IaaS solutions such as dedicated servers, cloud infrastructure, DDoS protection, and storage solutions. Also, for integration of IaaS solutions into completely new total solutions, the pricing and possible discounts associated with reseller hosting services can be important, so the end solution can carry with it a pricing that makes it truly attractive to purchase.

IT channel companies may be more inclined to select an IaaS company that provides discounts for their reseller hosting services since it enables them to save expenses and boost earnings. Discounts can assist them to accomplish their objective of maximizing earnings while decreasing expenditures. A specific type of discount anticipated by reseller hosting clients is for example through volume discounts. Clients buying a significant volume of IaaS resources, such as dedicated servers, network bandwidth, DDoS protection, cloud infrastructure, and storage solutions, should rightly expect to receive a reward in return in the form of discounts.

Long-term IT channel partners may also anticipate price reductions for their customer loyalty. If they have been utilizing an IaaS provider for a long time, they may anticipate a discount as a means of thanking them for their loyalty. Such a loyalty discount for reseller hosting services can be advantageous for both parties since it may strengthen the intimacy between the IaaS provider and IT channel partner while it may also help to increase the number of IaaS solutions being bought as a result of channel partner customer satisfaction.

IT channel partners might also anticipate benefits for paying in advance when purchasing reseller hosting services. Channel clients who pay their bills upfront thus expect to be rewarded with discounts from their IaaS provider, such as receiving a discount for making annual payments as opposed to monthly ones. A discount for employing such a means of payment can benefit both parties, much like loyalty discounts do. IaaS solution providers can profit from an expedited income stream that enables quicker reinvestment, while buyers of reseller hosting services can get even better deals if they pay the bill upfront and account for a postponed payback term.

In addition, reseller hosting clients may anticipate price reductions for IaaS solutions in the form of promotions. Temporary promotional discounts, such as those on the first month of service, or a specific discounted package. These can be seasonal discounts, for example, to get through the months with generally slack sales. Or discounts for specific technologies, for instance, to encourage certain configurations to be bought. Again, this can be mutually beneficial in terms of revenue enhancement and profit maximization, for both the IaaS provider and the IT channel partner who purchases the reseller hosting services.

Examples of Reseller Hosting Use Cases

Reseller hosting services can be used by different types of users and for various applications. The examples we’ll present below don’t cover the complete field of play, but they do give a sense of how these reseller hosting services may be employed.

• Managed Service Provider (MSP) – An MSP may have focused on for example workspace management, storage management applications, backup & data recovery, and cybersecurity, to name a few specializations. Reseller hosting services can offer such an MSP the opportunity to leave the infrastructure part in each client’s data center environment to third party experts, while allowing for a focus on those things where the MSP can really stand out. At the same time, discounts on reseller hosting packages offer an MSP the opportunity to still make a healthy profit margin, while their end clients can be completely relieved through a one-stop-shop including the IaaS solutions on which the MSP services run.
• Systems Integrator – A systems integrator may be active for example in the healthcare sector, providing an integrated automation software system which combines solutions delivered by multiple suppliers. It includes hardware, software, networking, and storage, but the main focus is on the software and its healtcare related features. The systems integrator delivers the integrated solution as a single system while assuming full responsibility for it including SLAs. The system may be onsite, remote, or implemented in a hybrid fashion, but hosting infrastructure is merely an add-on service. In such a case, the systems integrator can opt for reseller hosting services, to relieve the customer and himself and focus on where he can make a difference.
• VPS Hosting Provider – It may be attractive for VPS hosting providers to supply VPSs on dedicated servers through a reseller hosting account, which in turn may even function as a sub master host for disaggregated VPS hosting services. When as an IaaS provider you’re in the chain at distribution level, like Zumiv, this can surely be of interest to VPS suppliers in terms of cost and infrastructure expertise/experience. In this way, the VPS hosting provider only has the responsibility of setting up and maintaining the virtual private server system environment, while being completely relieved when it comes to the data center, the physical servers, and the network.
• Web Hosting Provider – For web hosting companies, reseller hosting may be a useful tool in a variety of circumstances. Small web hosting companies that are just starting out are one such example. SMBs might not have the means or know-how yet to run their own servers. At the same time, they might acknowledge that it is more affordable to use a larger IaaS supplier, like Zumiv, to lean on when to comes to the deep engineering part. It could help a startup web hosting company focus on expanding its business by freeing up the time and resources that would otherwise have been used for server deployment and maintenance. Another usage example can be found when businesses want to include web hosting in their portfolio of services while they just don’t want to deal with the process of deploying and maintaining their own servers. Using an IaaS provider like Worldstream may allow them to provide their clients premium web hosting without having to invest in server hardware and software maintenance and knowledge.
• Web Design & Development Agency – Offering their clients a very complete end-to-end web solution, including the hosting, is one of the key benefits of reseller hosting for web design and development companies. By using a reseller hosting account, web designers and developers can buy server space from a large IaaS provider like Zumiv and then break it up into smaller sections to sell to their own customers. This may boost customer satisfaction by enabling the agency to provide their clients with a one-stop shop for all of their digital needs. Another advantage of using reseller hosting for web design and development is the fact that the performance of a developed web environment also depends on proper technical integration between the server backend and the web frontend. Utilizing reseller hosting from an experienced IaaS supplier like Worldstream provides web design and development agencies the ability to optimize and control the overall end-to-end web experience for their clients.

Zumiv Reseller Hosting Offering

Zumiv provides an expending Infrastructure-as-a-Service (IaaS) solutions portfolio to clients globally, including highly customizable bare metal dedicated servers, private and public cloud, intelligent DDoS protection to mitigate large and under the radar attacks, colocation, and more. This is all supported by our own proprietary 10Tbit/s global backbone. With IaaS deployments conceivable in data centers across Europe, we have plenty of options for reseller hosting partners.

As a reseller hosting partner, you can also take advantage of a variety of other infrastructure as-a-service solutions delivered by Zumiv such as private cloud, public cloud on-ramps, block and object storage, firewalls, and more. These solutions are powered by Zumiv Elastic Network, an SDN/NFV network with EVPN VXLAN technology and built on Zumiv 10Tbit/s global backbone.

The Zumiv Reseller Program offers IT channel partners the chance to quickly expand their company portfolios with highly scalable, secure, and compliant IaaS solutions. The Reseller Program is flexible and easy to use. With the best profit margins in the industry and a generous partner incentive package, our reseller partner program really stands out.