VelociHOST Reduces Costs and Improves Service Quality for Companies Transitioning to Cloud Hosting

TL; DR: Cloud migration drives innovation and can make processes more cost-effective for enterprises. But SMBs have not been well-served by hosting providers that tend to cut corners — and service quality — to decrease expenses and risks. VelociHOST provides an alternative funding model and a commitment to customer engagement that keeps service levels high. It also offers robust support for dedicated servers, GPU servers, or VPS. VelociHOST is also working on automation and billing enhancements to make the move even more seamless.

One significant roadblock in adopting cloud-first infrastructure lies in its complexity. Small and medium-sized businesses may experience a significant disruption in IT when they move from self-hosted servers to a full or partial cloud-based platform. Selecting the right vendor partner is crucial to navigating the process with minimal disruption.

VelociHOST was founded in 2013 as an alternative to cloud hosting services that were complicated to manage and expensive for SMBs to adopt.

“Most small businesses and individual developers were struggling to accommodate their cloud adoption needs. They normally do not have the resources or in-house expertise to untangle the complex billing models and service offerings from industry leaders who have designed their offers around big corporations and government agencies,” said Roger Rivera, a Business Development Leader with VelociHOST.

VelociHOST delivers solutions for those SMBs by investing heavily in its own infrastructure and deploying cloud services that include VPS and bare-metal servers. It also offers cloud GPU servers at price points that fit the budgets of entrepreneurs.

“To drive innovation and emerge in a highly competitive market, small businesses and developers needed to have access to a cloud solutions provider that offers enterprise-class cloud infrastructure, scalability, reliability, a high-performance network, and human support,” Roger said. “But the main premise is to deliver our services with simplicity and affordable pricing.”

VelociHOST has datacenters in Miami and New York, from which it helps smaller companies move efficiently from local or fragmented hosted solutions to a full-featured cloud experience.

Although small businesses often struggle to adapt to cloud solutions, providers are locked in a cycle of innovation and transformation that may lead to conflicting incentives. For example, a top selling point of cloud services is reducing ownership costs compared with the cost of on-premises hardware. However, lower margins for providers must be made up somewhere. That often comes at the expense of customer support.

“The hosting industry has been hard-pressed to deliver exceptional customer service while maintaining the highest standards of security, reliability, and high performing infrastructures,” Roger said.

VelociHOST controls the entire service delivery pipeline by owning and operating its own equipment. The company passes those savings on to customers by sticking to its own financial resources and avoiding third-party capital investment and costly loans to back its operations.

VelociHOST’s financial model limits its ongoing debt service expenses, which frees up capital for other investments. Most hosting providers differ in their mix of price, service, and niche offerings, but VelociHOST isn’t pressured to cut costs in its service-delivery model to balance its books.

“Moving to the cloud is not an easy task for many adopters, and that is where customer service plays a big role,” Roger said. “We provide professional guidance on what the digital transformation entails and how to overcome any barriers to migrate to the cloud with minimal friction.”

Traditional cloud vendors may charge a premium for access to extensive customer support or technical account managers. But VelociHOST provides that customer engagement at no additional charge. And it includes free customer support in all of its service plans — from pre-sale through the entire life cycle of customer projects.

Emphasizing customer service provides another benefit for clients. Closer contact means VelociHOST can work more with customers to help them contextualize cloud migrations within a more extensive financial and operational framework.

Its model prioritizes feedback and sets the tone for product development, but it’s the availability of customer support that serves as the company’s real market differentiator.

“Our core principle is to allow small businesses and developers to access to enterprise-grade cloud services with global-class networking and premium customer service at a cost that is aligned with their small business models,” Roger said. “This approach allows them to reduce friction on their path to cloud adoption, improve customer experience, increase productivity, and elevate profitability.”

Although switching to a public cloud provider makes sense in the abstract, a significant chunk of the return on investment arises from cost savings related to routine business operations. Those who start this journey may account for IT-related costs, but it can help OpEx across the board.

For example, a small-scale manufacturer that migrates to the cloud may see a significant process-level improvement in its shipping and receiving department. So the shipping team becomes more efficient — and thus less costly — even though these savings didn’t factor into the original project budget.

“We provide our customers with cloud services that not only offer the enterprise-class infrastructure but also provide the realistic OpEx they can afford,” Roger said. “Therefore, we give them the ability to cut their time to market needs, adapt quickly to supply chain requirements, and respond rapidly to changing customer expectations.”

VelociHOST designs and implements its services with 100% customer input. Roger said that the company offered services in the past with a more rigid model, and they quickly proved not to be the solution businesses needed. VelociHOST removed those rigid cloud service offerings from its product pipeline in favor of flexible, scalable, and more customer-centric solutions.

Service delivery is often the pain point with low-cost hosting providers. VelociHOST’s funding model allows it to deliver the service level of a more expensive provider while offering the pricing of a more budget-minded platform. That works well for SMBs that need better support and a lower transition cost to justify the short-term investment.

VelociHOST also ensures that customer input drives its service portfolio. That means businesses receive services optimized to their needs, which often translates to substantial OpEx improvements above and beyond what’s accounted for in the IT project budget.

“With our GPU bare-metal servers in the cloud, developers are making graphical rendering, scientific modeling, machine learning, and other parallel computing solutions a reality. They are also keeping their operational costs down while backing their compute requirements with a scalable and flexible infrastructure,” Roger said. “This high computing power with thousands of NVIDIA GPU CUDA cores is now accessible to small businesses, a resource that once was reserved only for big corporations via traditional cloud hosting providers.”

Freeing SMBs from computing constraints that their larger competitors don’t face is a core driver of innovation and growth. VelociHOST’s product offerings give those under-resourced companies a chance to compete with major players in their respective markets.

Roger said that the company would continue to evolve and expand its footprint to other regions to enhance connectivity for global markets. In addition, VelociHOST’s long-term road map includes better automation and more granular billing cycles that will provide even more flexibility to the company’s customers.