LuxCloud Case Study by Parallels | Service Provider Case Study
LuxCloud uses Parallels Automation to enable ISVs and VARs to start a SaaS business
In 2010, Europe’s DCL Group had already been providing Internet-based services for over ten years. But there was a new opportunity in the market – Cloud computing. In March 2011, Marco Houwen, CEO and founder of LuxCloud launched an offering enabling IT resellers to sell Cloud-based applications on a white-label platform, without having to invest in any infrastructure.
DCL group’s strong reseller network prevented it from creating an end-user focused SaaS model. Indeed offering Cloud services directly to consumers or organizations and potentially competing with existing partners was not an option.
As a result, the decision was made to launch LuxCloud, a company that would offer a Cloud services distribution platform to IT resellers on a white-label basis. This approach would avoid any competition with resellers, while also giving those resellers a fast, easy way to deploy SaaS without investing in any infrastructure.
Parallels Automation was the only solution that could meet LuxCloud’s requirement to easily enable an ecosystem of SaaS providers and resellers.
Parallels Automation, consisting of Parallels Operations Automation and Parallels Business Automation, has enabled LuxCloud to develop a white-label Cloud services platform quickly and easily. The solution provides a complete and customizable operational and business support system for delivering SaaS. Every aspect of the solution, from delivery through to management and billing is automated. This enables LuxCloud and its resellers to rapidly deploy new services while minimizing operational costs and maximizing revenues and profitability.
LuxCloud is primarily targeting two main customer groups with its white-label Cloud services offering:
- Service providers, including ISPs, web hosting providers, city carriers and telecoms operators
- Traditional IT channel partners including systems integrators and value-added resellers (VARs)
For both groups, and for LuxCloud itself, the ability to launch a new Cloud service quickly creates competitive advantage. After receiving full training from Parallels, LuxCloud set up an onboarding process for its resellers covering the transfer of key information and solution training. This process enables LuxCloud to get a new partner up and running within a few days.
Total scalability, maximum value
Parallels Automation offers LuxCloud and its resellers outstanding scalability in terms of service breadth and the number of users they can support. After a 6-month pilot phase, LuxCloud took its service online in March 2011. Initially, the service portfolio included Linux-based shared hosting, e-mail, Open-Xchange, BackupAgent (an online backup solution), domain name registration and ePages (an online E-commerce solution).
Since then, Microsoft Exchange hosting, Microsoft SharePoint and Microsoft Hyper-V Server have been added. Resellers select which services to offer and add new ones quickly and easily. They can potentially scale up from a few hundred users to a million – all without investing in any infrastructure. Finally, they can also integrate their own branding onto the platform, so customers directly associate the value delivered with their business.
A bright future
After just a few weeks of operation, LuxCloud had already won ten reseller partners across Western Europe, and feedback has been extremely positive. “Thanks to the LuxCloud platform, EuroDNS was able to add new Cloud services to its offering in record time and without a glitch,” comments Xavier Buck, EuroDNS CEO, adding, “LuxCloud is the ultimate solution to grow our business!”
Above all, resellers have found the platform easy and fast to integrate and deploy. And because they don’t have to worry about service maintenance and management (all of which is handled by LuxCloud via Parallels Automation) they can focus on their core business – selling services to their customers.
Furthermore, LuxCloud is already planning the next phase of expansion using the Parallels Automation platform. First, it will broaden its service portfolio to include Microsoft Windows-based shared hosting and Microsoft Office Communications. It will then turn its attention to growing market share within Western Europe and expanding the offering globally, adding additional services and applications according to market demands.
Ultimately, Parallels enabled LuxCloud to translate a concept into a highly sophisticated Cloud services platform covering all reseller models within one scalable solution. Thanks to Parallels, LuxCloud has established itself as an early leader in the fast growing Cloud services distribution market. Moreover, its resellers are also gaining a competitive advantage in being able to offer Cloud services before many of their peers.
Business Situation Summary
DCL Group wanted to take advantage of new opportunities in delivering Software-as-a-Service to customers, without alienating its existing base of IT reseller customers.
LuxCloud selected Parallels Automation as the only Cloud services delivery solution that could meet all its automation and scalability requirements.
Parallels Automation is helping DCL Group/LuxCloud:
- Launch an innovative white-label Cloud services business
- Gain competitive advantage through early entry into the Cloud services distribution market
- Strengthen relationships with reseller customers
- Expand its portfolio of Cloud services quickly
- Build a business model that enables rapid expansion Parallels Products Used Parallels® Automation.
Parallels Products Used
LuxCloud is the Cloud services distribution arm of DCL Group, a Luxembourg-based provider of hosting, internet domain and VoIP services.
Luxembourg & Western Europe.
Web hosting/domain registration/ VoIP call termination/Cloud services distribution.
Founded in 2010 and headquartered in Luxembourg, LuxCloud will have 20 employees by the end of 2011.
— Lorenz Meis, COO, LuxCloud