Introduction: The Shift from CapEx to AppEX
For Cloud Service Providers (CSPs) managing extensive, multi-tenant cloud infrastructure, traditional hardware load balancers are both costly and inefficient. VMware Avi Load Balancer (formerly NSX Advanced Load Balancer) redefines this by turning a cost-center into a revenue generator. Avi’s features—Centralized Control, Elastic Scale, Multi-Tenancy, and comprehensive Application Analytics—align perfectly with the CSP Recurring-Revenue, Transactional, and Consumption-based Model. The key to monetization is moving beyond simple feature bundling to selling outcomes.
Here is the CSP’s guide to monetizing VMware Avi Load Balancer.
1. Consumption-Based Tiers: Selling Elasticity, Not Appliances
The most effective monetization strategy utilizes Avi’s core benefit: elasticity. Instead of a fixed fee for a black box, charge based on customer consumption or security needs.
| Monetization Model | Avi Feature | RTM Pricing Metric |
|————————-|——————————————–|———————————————————|
| Basic Load Balancing | Local L4/L7 Load Balancing, Health Checks | Per Virtual Service (VS) or Per Mbps/Gbps of Throughput |
| Elastic Bursting | Auto-Scale/Auto-Heal of Service Engines | Hourly/Daily Burst Charge (e.g., $X per additional SE) |
| Capacity Reserve | Reserved SE Capacity | Fixed Monthly Tier based on maximum capacity |
| Global/DRaaS | Global Server Load Balancing (GSLB) | Premium Add-on or Per-Site GSLB Management Fee |
Key Takeaway: CSPs should use a Service Unit (SU) or Capacity-based subscription license from VMware/Broadcom and translate that into granular, utility-style pricing for customers.
2. Security as a Premium Service (WAF/DDoS)
Avi offers integrated Web Application Firewall (WAF), DDoS protection, and Bot Management. These should be monetized as distinct, high-value security services.
-
Managed WAF Service: Offer WAF as a premium security tier.
- Tiered Pricing: Basic (OWASP Top 10 protection), Advanced (Custom rules), and Pro (Managed, 24/7 Security Operations).
- Metric: Charge Per Protected Application or Per WAF Rule Set.
-
DDoS Protection & Rate Limiting: Charge an add-on fee for activating L3, L4, and L7 DDoS protection policies.
-
Security Analytics: Bundle security insights and automated threat updates into a “Security Insights” monthly fee.
3. Application Visibility and Analytics (The Operational Premium)
Avi’s real-time analytics provide visibility into application health, latency, logs, and user experience, saving DevOps and AppOps teams time and offering monetization opportunities.
-
Self-Service Analytics Portal: Charge a monthly fee for access to Avi Controller’s logs, health scores, and dashboards.
-
SLA Premium: Offer an “Accelerated MTTR (Mean Time to Resolution) SLA” at a premium using Avi’s telemetry.
-
Consultative Services: Offer Application Optimization Consulting based on Avi’s data.
4. Cloud-Native & Multi-Cloud Enablement
As applications move to containers, CSPs can charge for modern application services using Avi’s capabilities.
-
Kubernetes Ingress-as-a-Service: Charge a monthly fee Per Kubernetes Cluster or Per Ingress/Gateway API Object.
-
Multi-Cloud Brokerage: Use Avi’s control plane to manage deployments across private and public clouds, charging a Multi-Cloud Management Uplift or Cross-Cloud GSLB Fee.
5. Pricing Matrix: Per Virtual Service (VS) Consumption Model
Here is a proposed pricing matrix based on the “Per Virtual Service (VS)” model, which is straightforward and scales with application complexity and security needs.
| Service Tier | Core Features Included | Pricing Metric | Estimated Monthly Rate (Example) | Monetization Driver |
|————————|—————————————————————————————-|————————|———————————-|——————————|
| I. Standard L4/L7 | L4/L7 Load Balancing, Basic Health Checks, Standard SSL Termination, Basic Logging | Per VS / Per Month | $50 – $75 | Core Load Balancing |
| II. Secure L7 (WAF) | Includes Standard L4/L7 Features PLUS: Integrated WAF, L7 DDoS Protection | Per VS / Per Month | $150 – $250 | Security as a Service |
| III. Global & Advanced | Includes Secure L7 Features PLUS: GSLB, Application Analytics Portal Access | Per VS / Per Month | $350 – $500 | Availability & Visibility |
| IV. Elastic Burst | Automated
