Can solutions providers profit from Amazon Web Services? The VAR Guy found the answer by spending some more time with Levementum, a solutions provider that integrates multiple open source applications (such as SugarCRM and Compiere ERP) into Amazon’s cloud for customers. Here’s a bit about Levementum’s strategy and future direction.
In many ways, Levementum represents an IT consulting firm and integrator designed for the age of cloud software. Founded in 2004, Levementum has grown to 31 employees through software as a service (SaaS) married to the Amazon Elastic Compute Cloud (EC2).
Shameless plug: Geoffrey Mobisson, managing director at Levementum, is among the confirmed guest speakers for The VAR Guy Live, an April 15 webcast exploring SaaS opportunities for VARs (with an emphasis on Amazon’s cloud and Google Apps).
What’s Real Today?
More than 20 Levementum customers now run their applications in EC2, according to Mobisson. “EC2 is the only solution we offer for SaaS hosting,” says Mobisson. “This is no longer a bet, it’s our strategy.”
Indeed, Levementum plans to build out its Amazon cloud offerings to include open source options like:
- Alfresco content management (an alternative to Microsoft SharePoint)
- Magento (e-commerce software)
- And a Levementum Enterprise Open Source containing SugarCRM, Compiere ERP and integration capabilities from Talend
The Money Keeps Coming
Some consulting firms charge a one-time fee to move applications into Amazon’s cloud. But in Levementum’s case, the company generates recurring revenue by charging customers a monthly fee for all of the application services. Instead of receiving multiple bills (from Levementum, Amazon and the application provider), customers get a single monthly invoice from Levementum.
The VAR Guy remains intrigued by the Amazon cloud model. Few VARs have successfully mastered SaaS, and even fewer have plugged into Amazon’s cloud to generate monthly recurring revenue. So far, Levementum seems to be among the leaders in this emerging market.
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Tags: Alfresco | Amazon EC2 | Amazon Elastic Compute Cloud | Compiere | Levementum | Magento | SugarCRM | Talend
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Amazon should really join Open Cloud. What they do at the moment is immobilise and proprietarise Free software.