Reverse Engineering Karl’s $249 package

IT Business

Karl has made quite a bit of noise with his $249 / 5 user package and how he’s making money hand over fist. As usual, the devil is in the details but you can sign up for his Cloud Podcast over at and at $5 a month it’s a steal – not to mention that it comes with 17 hours worth of service. Karl has blogged at length about it but this is really where it makes more sense to study than to just push the button.

Here it is in a nutshell:

5 Exchange Mailboxes w/ Antispam, Antiav..

250 GB File Storage

Destkop AV.

Vlad’s Pack:

The Exchange 2010 hosting package from Own Web Now – $10/user. This solution comes with SharePoint 2010. Mailbox, public folders, mail enabled contacts, all of SharePoint goodness.

ExchangeDefender – $0/user. This solution comes with SPAM filtering, antivirus, web filtering, business continuity (1 year worth of archiving powered by Exchange 2010) and so on.

Amazon S3 / Jungledisk – $5/user, $0.16/GB. Gives you a mapped drive on a Windows system tied directly to S3 service.

Note: You can get all the specific pricing and marketing plans, assistance from Own Web Now Corp. Because we don’t sell direct (only to IT Solution Providers) there is a short app but it’s free and just meant as a deterrent so we don’t end up with a law office as a client. 🙂

Let’s total this up, for 5 users and 250 GB of storage: $50 for Exchange, SharePoint, ExchangeDefender, LiveArchive, AV/Antispam, Web Filtering, Web File Sharing. $65 for 5 users of JungleDisk and 250 GB storage.

Total cost: $115. / mo

Total profit: $134. /mo

This price is far less than what people currently charge to manage an SBS server (for example) and the profit margin is higher. Besides, you don’t have to do a thing! Just crank out sales agreements and collect over a grand for it. When they ask for support, pile on more!

As usual, see for more. ABP.

6 Responses to Reverse Engineering Karl’s $249 package

  1. Andrew Moon says:

    Loved Karl’s idea. We’re going to be offering your exact pkg, but w/Rackspace files. No diff in price. Love it!!

  2. Vlad Mazek says:


    Awesome, let me know if I can help on the Exchange/SP/ExchangeDefender frontend.


  3. karlp says:

    Dude. Once again you make the point that there is no secret sauce. And there’s no “competitive” advantage.

    Cloud based services might not be for everyone. But the folks who aren’t going to offer this to their clients need to know that I will.

    Just saying. Thanks as always for the pimp.

  4. Stuart Crawford says:

    Karl, we should talk…I can send some business your way since part of my Internet coaching business is on how small business can leverage the web.

    Stuart Crawford

  5. CharlesB says:

    I have been looking at this exact setup, great for the smallest of clients, but the problem comes back when trying to address LOB apps like quickbooks or law software. Some clients you could put in a Foundations server, would be nice to do a cheap terminal server but the changes the pricing quite a bit.

  6. raffi says:

    You can probably skip the jungledisk bit by just using sharepoint and map a drive to a sharepoint folder.

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