MSPmentor

I hope you don’t mind if I brag for a few paragraphs. Back in September, I predicted Cisco would soon unveil a managed services strategy that included new pricing models for partners. The official announcement came today, in the form of the new Cisco Managed Services Channel Program.

The program currently includes AT&T, CDW Berbee, Bell Canada, BT, Calence, Dimension Data, Getronics, NetStar, Sprint, TELUS, Verizon Business and VSNL. The program includes three managed service program levels, Cisco Powered Managed Service, Strategic Managed Service, and Legacy Managed Service. The premium Cisco Powered Managed Service level currently includes designations for Connectivity, Unified Communications, Security, Mobility and Data Center Services. The program’s entry criterion is based on the Information Technology Infrastructure Library (ITIL) framework of best practices.

By the way, I’ve stated multiple times that ITIL will grow in importance for MSPs. If you’re not familiar with ITIL, it’s time to get up to speed on the standard.

When I first heard about Cisco’s managed services strategy back in September, I wondered if the company planned to launch an MSP platform to compete with Autotask, Kaseya, Level Platforms, N-able and other business process automation companies. However, Cisco insiders repeatedly told me the company did not plan to move into the MSP platform market. Rather, Cisco’s goal is to ensure its product pricing and support models reflect the needs of MSPs.

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Kaseya COO Tim McMullen just disclosed that the company’s managed services platform will soon support Apple’s Mac OS and Linux. McMullen made the comment during a Webcast a few moments ago. Kaseya’s commitment to Apple and Linux reinforces the fact that a small — but influential — piece of the SMB market has made the move to the Macintosh. Support for Mac OS should arrive in early 2008, with Linux support to follow shortly thereafter. I’ve got reason to celebrate: I’m typing this blog entry on my MacBook Pro during a business trip, and heading home to visit my Dell/Linux desktop PC tonight.

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I have spent the past two days at CompTIA’s SMB Summit in Bonita Springs, Florida. Many of the discussions here involved managed services. Here are seven key themes at the event as they relate to running your business.

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Don’t press the panic button. The mood is generally upbeat here at CompTIA’s SMB Summit in Bonita Springs, Fla. But a few attendees have mentioned that they’ve noticed some SMB customers holding more tightly onto their money in recent months. Still, the SMB sector appears to be the most promising market segment for VARs pushing into managed services. Here’s why.

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A growing number of security-focused companies are introducing managed services platforms that support the Payment Card Industry (PCI) standard. Looking ahead, I suspect PCI compliance could emerge as a “check mark” that some customers demand from their managed service providers.

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I often hesitate to publish or quote from research reports, since the data often is designed to hype a market or drive sales of the report. A prime example: Yankee Group says managed security services generated $4 billion in revenue in 2006. Hmmm. What percentage of that revenue went to small managed service providers? And how much of it went to big players like VeriSign, Symantec, EDS, etc.? I don’t have the answer to those important questions. But perhaps the more important piece of Yankee’s research involves market growth. The company says managed security services revenue will grow 14 percent annually through 2010.

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Rewind to January 2004. At the time, Bill Gates predicted the spam problem would be solved within two years. With that single prediction, Gates was wrong, right and misinterpreted all at once. No, the spam problem hasn’t been solved. Yes, there are now tools available to help mitigate spam. And contrary to what many members of the press reported, Gates never said he would rid the world of spam. Instead, he was suggesting that best practices combined with effective tools would largely mitigate the spam problem. With that thought in mind, software companies are promoting anti-spam solutions to managed service providers.A case in point: Engate Technology has introduced a managed email security solution that extends the company’s Anti-Spam Channel Partner Program. The program allows partners to offer customers an on-demand, subscription-based email service that includes anti-spam capabilities. Engate says the program includes technical training and support, lead sharing, incentive programs, co-marketing support and access to an online partner portal.

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As you may know I blog on a range of technology topics. Sometimes, those topics converge into a single blog entry. A case in point: I’m blogging live from MuniWireless 2007: Silicon Valley. One of the hot topics of discussion here is the rise of video surveillance applications within city networks. I can’t help but believe that video surveillance is one of the next big opportunities for managed service providers.

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I got a solid — make that rock solid — tip today that Cisco Systems will announce its managed services strategy any day now. As one source close to the company told me, “the strategy is finally fully baked.”

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The folks at Cognos, one of the leading business intelligence software providers, are in a curious position. Cognos’s rivals are getting acquired by big players like Oracle and SAP AG. And the software industry as a whole is moving toward software as a service (SaaS) — think Salesforce.com and NetSuite.com. So where does that leave Cognos? The BI software provider has to get a better feel for SaaS, managed services and the channel. Fast. Cognos’s CEO is doing exactly that. Here’s how.

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Like a Big Mac and a large fries, IT service franchises now go hand-in-hand with managed services. The latest example: Expetec Technology Services — an IT services franchisor in 20 states and Canada — has embraced the ConnectWise managed services platform. The move comes roughly one week after the Fast-Tek franchises announced plans to leverage Kaseya and SecureMyCompany’s managed services. The bottom line: If break-fix franchises are embracing managed services, surely more sophisticated solutions providers need to do the same.

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I may have underestimated the MSP industry’s disdain for Dell. On the one hand, I’ve personally been a Dell customer for about a decade. But as I speak with managed service providers across the industry, most of them simply don’t trust Dell. Does the PC giant deserve the benefit of the doubt? Or is Dell’s move into the managed service market doomed to fail?First, I’ve got to disclose a bunch of items to you. Yes, my retirement account includes a few shares of Dell — but the total value is less than the cost of a nifty plasma TV. Second, I use a Dell PC running Ubuntu Linux and I love it. Third, all the TVs in my house are from Dell. So, I’m pretty happy with the company.

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MSP Alliance President Charles Weaver spent some time telling me about the organization’s new accreditation program during a conference last month. Sounds like the program is gaining some traction.

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Bob Hope and Bing Crosby. Jake and Elwood Blues. Heck, even Xerox and Do IT Smarter love a good road trip. I hear the duo is hosting a Managed Service Provider road show with stops in Charlotte, N.C. (October 11), Houston, Texas (October 17), New Orleans, La. (October 24) and Hollywood, Fla. (October 25). SonicWall and MX Logic also are joining the event series, which offers practical tips for selling managed services. For details, check out the Do IT Smarter event site.

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Imagine if The Geek Squad embraced managed services. That very scenario is occurring at Fast-teks, a nationwide computer services company that’s working with Kaseya and SecureMyCompany to master managed services. Under terms of a new initiative, Fast-teks is using SecureMyCompany’s hosted offerings to service customers in more than 120 North American markets. The online services include Kaseya Managed Services software, which offers asset management, software inventory and remote management capabilities.

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When it comes to managed services, Trend Micro certainly has a sense for timing. The security company has launched a “pay as you go” managed service with Ingram Micro. The offering comes as Trend rival Symantec prepares to launch its own software-as-a-service (SaaS) platform, know as the Symatec Protection Network. Let the showdown begin.

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LogLogic’s corporate blog contains a quick overview of the company’s new managed service provider program. Early participants in the program include Internet heavyweights like BT and VeriSign. You’ll find some info about LogLogic’s MSP program here.

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I didn’t have a chance to attend the recent SMB Nation conference in Seattle. But Larry Lentz, a Microsoft Small Business Server guru, spotted a few trends at the event — including some thoughts on manged services. You can find Larry’s observations over on his personal blog.

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Forgive me for this shameless plug, but here’s a prime opportunity for successful MSPs to step into the spotlight. Is your company among the industry’s top managed service providers? Click Here to take survey and your company could appear in our inaugural MSPmentor 100 list.

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Most managed service providers focus on the small business market. But there’s ample opportunity to offer managed services into larger vertical markets — including the federal government. In the months ahead, Uncle Sam’s appetite for managed services will grow significantly, according to the Defense Department’s CIO. Federal Computer Week has a quick story about this trend that’s worth reading.

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When people mention the city of Detroit to me, I think of struggling car companies and Thanksgiving football. But for Cbeyond, a managed service provider and Cisco Systems partner, Detroit represents a growing business opportunity. Cbeyond expects to employ roughly 100 people in the Detroit area by the end of this year as it seeks more small business customers for its IP telephony services. Equally important, Cbeyond has found creative ways to publicize its expertise. Here’s a look.

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October is shaping up to be a busy month for Symantec’s various online software efforts. While the company prepares to launch Symantec Protection Network (a software as a service platform for partners), Symantec is also promoting its Managed Security Services (MSS) to customers. Here’s what Symantec’s strategy means to managed service providers.

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So you want to be a manged service provider? Recurring revenue from multiple customers sounds wonderful. But don’t forget, MSP rewards also involve some big risks. Johnny Kessel, one of the most vocal managed service providers I’ve met on the Net, has created a list of seven potential traps awaiting MSPs. Here’s a rundown of the challenges you’ll face when leaping from IT solutions to managed services, according to Kessel.

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