I'm going to need some feedback here from the MSPs because this speaks to the heart of your profession and future. A recent editorial from Channel Insider discusses the potential shift by vendors in going more direct and less through the channel. Now, initially, this could be a discussion devoid of any mention of the term managed services. However, since managed services are such an important element in the channel today, I think it deserves some discussion.
Are vendors going to do away with their channels? Some of them would love to do just that but my guess is they can't. Here's why.
The vendors, being good business people, are always looking for the most direct path to the customer. Channels can be very efficient (if done correctly) and they can scale (again, if done correctly). A direct approach, while the shortest distance between the vendor and the customer, does not always work. The vendor can see the customer, they know where they are, and they know what they want (most of the time). So why not go direct? It's a simple matter of trust.
Vendors represent their own solutions and products. Customers know this. MSPs, the good ones, serve the interests of their clients firs and foremost. That is their job. This is their purpose! If I am a client and I know I want brand X then I'll go directly to brand X company and buy from them. If I don't know what I want and need an independent opinion, I go to my MSP and get it. So much value in such a simple relationship. This is why, in my opinion, the vendors will never do away with their channels. When it comes to managed service providers, they have a deep level of trust that is difficult to break and even harder to replicate (particularly for vendors).
MSPs are living in uncertain times; economy, direct vendor plays, etc. However, the biggest reasons business customers are seeking out MSPs, trust and certainty, are the very reasons why vendors cannot simulate this relationship with the customer directly.
MSPs, stand your ground and do your duty!
Tuesday, July 29, 2008
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5 comments:
I think the mistake is when an MSP has it backwards. The vendor should be seeking the MSP, not the other way around.
You know we stopped selling product a long time ago and still grew our MPS business. I don't see that a SaaS solution or for that matter any direct vendor relationship is going to hurt the MSP. Remember we are providing a service NOT a product.
The Channel article is the typical journalistic hype claiming the death of another industry with a small stroke of technological advancement. Agreed. SaaS will revolutionize the software industry. But, the last time I checked, most of our clients were still confused by Word. If we aren't around to help guide them in their technology decisions, who will?
good point Dave. In all fairness, I should point out that this appears to be an editorial by a guest writer and probably not the view of Channel Insider. By and large Channel Insider produces very good content when it comes to maanged services.
I just think these types of articles don't represent channel companies (e.g., MSPs) in a very positive light.
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