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Monday, 01 October 2012 10:34

The Beauty of White Label Branding

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White label branding plays a big role in economics especially in spreading around income. It allows multiple businesses to flourish and brings with it healthy competition which leads to cheaper rates and better service. This is because a large provider can sell its goods or services to other businesses who brand it as their own and adding their own touches and customizations. This puts all those second party businesses in direct competition with each other because they are selling the same products or service with slightly different flavors. This puts pressure on all of them which leads them to lower prices, improved service, and diversity of choice. The best part is that the customer gets all the benefits.

White label branding has been a big part of economics since even before the Industrial Revolution. Manufacturers make products to be branded by their clients allowing smaller businesses to be able to sell their own brand of products without investing in the necessary infrastructure. This principle has largely been unchanged since then and has been adopted in today’s electronic gadgets, especially with the boom of China’s manufacturing industry. A lot of smaller businesses in Asia buy electronic gadgets like flash drives, keyboards, mice, or headphones from Chinese manufacturers, put their own brand on them and sell them in their own country.

This principle extends to cloud computing because of its large cost barrier of entry for providers. A very large capital needs to be invested in infrastructure and staff in order to meet demands, as well as a lot of time in preparation, about 12-18 months before services can really start. When the large provider is ready to sell its services, it will not appeal to all demographics, and it cannot cater to all of them anyway. White label branding is a way to increase its exposure and widen its user-base even though in an indirect manner. The large provider will sell its infrastructure and expertise to smaller cloud providers who then sell the service of that same infrastructure and applications to users in a slightly different form and for a different purpose. These companies which provide a variety of services can be said to sellers of XaaS (meaning “anything as a service”). So in essence, white label branding allows smaller cloud providers to sell their unique applications and ideas by utilizing someone else’s infrastructure and expertise. This is the same model that GreenQube offers; they allow smaller providers to solely maintain their loyal customers yet provide them with a better infrastructure and service through white labeling. That is why GreenQube is a top Citrix White Label provider.