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When you throw in value added products or services, such as free software (software that will usually cost them a pretty penny), you begin to narrow the gap between you and your competitors as to why you benefit them more.
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besides, a decently sized provider will pay a lot less for these licenses (the bulk discounts get quite ridiculous) than the reseller would have to pay on his own. It's the same technique used by datacenters for control panel licenses. At the end of the day, everybody wins, the hosting provider, the reseller, the software developer and indirectly, even the end user (reseller's customer).