Will Cloud Computing Rain on the MSP Parade?

The problem with clouds is that they bring rain. While rain is not a bad thing, I'm wondering where all this recent discussion on cloud computing in the IT channel is going to take us.

The cloud computing/SaaS movement (does anyone remember ASP?) is neither new nor is it without utility for the channel. MSPs, in particular, have been making very nice use of cloud computing or Software as a Service models for some time now. Today, however, it seems like nothing can be called a good idea unless it involves putting data up in the cloud.

I believe everything has a purpose in this world and cloud computing/SaaS is no different. Cloud computing can make life a lot easier for many people and organizations. Data residing in the cloud, available to large numbers of physically disparate people, can alleviate information sharing and the often expensive infrastructure costs of hosting this data. But just because it is easy doesn't mean it is good or safe. Cloud computing or SaaS does make data very easy to access and can make it easier for the IT department to manage by removing infrastructure needed to support the data. But how does this technology impact the channel? Specifically, how does it impact MSPs?

The cloud computing movement is all about vendors selling services where previously they had sold hardware and/or software. In a majority of cases, this scenario will hold true. Because cloud computing/SaaS offers MSPs some very attractive service offerings with very little ramp up time, many MSPs are flocking to this model with glee.

Now, let's consider one potential downside to this scenario. The MSP starts offering a SaaS model to its clients, and the MSP gets into a dispute with the vendor. Channel conflict, pricing discrepancies, service issues, you name it and it could be an issue. Now, all the vendor has to do is switch off the service and take the client. The MSP is easily removed from the equation, the client may see very little to any disruption of service, and everything goes on as if nothing has happened.

Think it can't happen? Well, it does happen and will probably happen more frequently. Let's not forget that data loss by in the cloud providers does happen. While it may not happen frequently, it does beg the question of who will be responsible for this data and who will be advising the client on what is best for their business.

In the end, cloud computing will play a very important role in managed services. Will it replace it? I don't think so. Will it potentially disrupt the managed services profession? I hope not, but that will ultimately depend on what the MSPs do. The question is, would you trust a cloud to advise your business?

What do you think?