I just bought a new filing cabinet to replace my old and failing cabinet. Now, I've got lots of space where I can throw all my old files. Trouble is, the files need to be organized more efficiently so I can find them when I need them. Somehow, the new cabinet isn't exactly having the desired effect I though it would.
I think this same approach is often found at work when businesses think about email archiving. I used to save all my emails into an archive file that would sit quietly down at the bottom of my Outlook pane. Doing this made me feel like I was being smart, staying well organized because all my correspondence was safe. Then, one day, my PC crashes, the archive file is no longer accessible (not to mention all my other non-networked files), and my little organizational system suddenly doesn't seem as mature as I thought it was.
The point I'm trying to make is, many small and medium sized businesses take the same approach to their storage and archiving processes. Buying an unmanaged NAS device, getting a license of some email backup solution but never bothering to implement a storage or archiving policy within their company, these are all examples of technology being present but ultimately serving no purpose without a clear policy that can be enforced. What is really surprising is that businesses will go out and buy filing cabinets all day long but never look at their electronic data the same way.
One day, I called my MSP and said, we really need a better way to archive and retrieve our email and files. Voila, today I'm secure in knowing that if my PC crashes I'll be able to get back all my sensitive data. All the MSPs reading this blog, do you take the time to consult with your clients about these types of issues? If not, you're missing out on a very valuable and bonding experience with your client.
Thursday, August 28, 2008
Friday, August 22, 2008
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?
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?
Friday, August 8, 2008
When Vendors Become the Competition
A recent article on Channel Web, “HP Funds New CDW Effort To Target SMB Accounts” states that HP is going to be funding 110 reps at CDW to target customers under 499 employees. While this is not a managed services play it does get you thinking. Dell is making a large direct play in the SMB, Microsoft just announced their SaaS solution, Symantec is looking to streamline their sales by cutting out the middle man (albeit for enterprise accounts). All of these topics have a lot of reseller screaming foul play. There is so much concern with channel conflict, not getting leads from the vendors, commoditization, how can we survive in a SaaS world, etc.
What this really looks like to me is these large vendors are looking for new and better ways to run a profitable business. Rather than complaining and worrying about what their vendors are going to do next, resellers need to be looking for new and better ways to run a profitable business.
I think that we all know that managed services are the way of the future for our industry. If you are just transitioning to this model or are an established MSP I think that you will find you have less and less reliance on vendors. As a Master MSP myself I can tell you that we have very little reliance on vendors, with the exception of my RMM and my PSA providers I really don’t care what any of the vendors are doing.
If you have been relying on a vendor for leads and also trusting that vendor not to target your customers directly then what do you do when both of these dependencies are gone? Again look for new and better ways to run a profitable business. Here are a couple of recommendations for you to ponder.
First off, make sure that you truly are the “Trusted Advisor” to your existing customer base. This will keep these vendors out of your existing customers so you can focus on growing customers.
Second, stop relying on someone else to give you leads. Get out there and get them yourself. Marketing is something that we, as technology people, tend to shy away from. I can tell you that HP, Dell and CDW don’t shy away from it, that is how they got to be where they are today. I am no marketing expert but my experience has been that top of mind awareness is key to acquiring new customers, so get your name out there. Send mailers, make phone calls, attend networking events, hold seminars, build a decent website, etc….
Finally, actually run a profitable business. If you don’t have a CFO, get one, there are a lot of part time CFO’s out there (much like there are a lot of part time CIO’s out there). In a time with increased competition and tighter IT budgets you really need to focus on your profitability. This means cutting costs, managing cash flow, properly forecasting your revenues and focusing on your profitable lines of business.
What this really looks like to me is these large vendors are looking for new and better ways to run a profitable business. Rather than complaining and worrying about what their vendors are going to do next, resellers need to be looking for new and better ways to run a profitable business.
I think that we all know that managed services are the way of the future for our industry. If you are just transitioning to this model or are an established MSP I think that you will find you have less and less reliance on vendors. As a Master MSP myself I can tell you that we have very little reliance on vendors, with the exception of my RMM and my PSA providers I really don’t care what any of the vendors are doing.
If you have been relying on a vendor for leads and also trusting that vendor not to target your customers directly then what do you do when both of these dependencies are gone? Again look for new and better ways to run a profitable business. Here are a couple of recommendations for you to ponder.
First off, make sure that you truly are the “Trusted Advisor” to your existing customer base. This will keep these vendors out of your existing customers so you can focus on growing customers.
Second, stop relying on someone else to give you leads. Get out there and get them yourself. Marketing is something that we, as technology people, tend to shy away from. I can tell you that HP, Dell and CDW don’t shy away from it, that is how they got to be where they are today. I am no marketing expert but my experience has been that top of mind awareness is key to acquiring new customers, so get your name out there. Send mailers, make phone calls, attend networking events, hold seminars, build a decent website, etc….
Finally, actually run a profitable business. If you don’t have a CFO, get one, there are a lot of part time CFO’s out there (much like there are a lot of part time CIO’s out there). In a time with increased competition and tighter IT budgets you really need to focus on your profitability. This means cutting costs, managing cash flow, properly forecasting your revenues and focusing on your profitable lines of business.
Tuesday, August 5, 2008
The Real State of the Managed Services Industry
When I look back at almost 10 years of this industry I am really inspired by how far we have come. Everybody is talking about managed services and I suppose in some small measure, that makes me feel like I wasn't completely crazy all those years ago telling everyone I met that this thing called managed services was the future of IT management.
Today, however, too much of a good thing can actually be bad. Case in point, conflict in the managed services channel. At some point it was inevitable that vendors would get wind of managed services and start to become jealous of all the benefits MSPs were receiving from this professional model. Today, there are some people who would have you believe that MSPs are concerned about this industry. I would take issue with such a position.
The Managed Services profession is at the early stages of end-user adoption. This means that over the next 5-10 years more and more end-users will be using MSPs to manage their IT. Naturally, this is a good thing for MSPs.
However, any pessimism that exists today in the IT channel (i.e., the MSP world at large) is primarily focused on vendors who are both courting the MSP and end-user community simultaneously. MSPs simply want a relationship with their vendors that is devoid of any conflicts. MSPs want to work with their vendors and talk about product roadmaps, solving customer problems, and other such things of importance. The last thing a MSP wants from their vendor is to worry about whether they are going to lose clients to a direct sales person cold calling on behalf of the vendor.
Yet, as serious as these issues are, I believe the average MSP out there is pretty optimistic about the future of managed services. Are you?
Today, however, too much of a good thing can actually be bad. Case in point, conflict in the managed services channel. At some point it was inevitable that vendors would get wind of managed services and start to become jealous of all the benefits MSPs were receiving from this professional model. Today, there are some people who would have you believe that MSPs are concerned about this industry. I would take issue with such a position.
The Managed Services profession is at the early stages of end-user adoption. This means that over the next 5-10 years more and more end-users will be using MSPs to manage their IT. Naturally, this is a good thing for MSPs.
However, any pessimism that exists today in the IT channel (i.e., the MSP world at large) is primarily focused on vendors who are both courting the MSP and end-user community simultaneously. MSPs simply want a relationship with their vendors that is devoid of any conflicts. MSPs want to work with their vendors and talk about product roadmaps, solving customer problems, and other such things of importance. The last thing a MSP wants from their vendor is to worry about whether they are going to lose clients to a direct sales person cold calling on behalf of the vendor.
Yet, as serious as these issues are, I believe the average MSP out there is pretty optimistic about the future of managed services. Are you?
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