Independent software vendors (ISVs) have always been the lifeblood of Microsoft’s business. But these days, Microsoft is maintaining a careful balancing act — promoting software as a service (SaaS) directly to customers while also recruiting managed service providers to assist the effort.
The latest example: Attenda Limited, which describes itself as the “Always On Managed Services Company,” has joined Microsoft’s SaaS Incubation Center Program in Europe. SaaS specialists and MSPs should be watching this Microsoft partner program closely. Here’s why.
Microsoft’s incubation efforts help MSPs and hosted software providers to master the intricacies of Microsoft’s online applications. The program also helps partners understand the commercial, financial and technical challenges that ISVs face when moving into the SaaS space, according to a statement from Attenda.
Based in the United Kingdom, Attenda is an HP Signature Partner, Microsoft Gold Certified Partner, SAP Adaptive IT Hosting Provider and SunTone accredited MSP.
Microsoft’s SaaS initiatives represent both an opportunity and a challenge to partners. Even as the software giant strives to empower partners, Microsoft is also tempted to use direct sales to compete head-on against Salesforce.com and other early SaaS market leaders.
MSPmentor in October 2007 provided readers with these 10 key points to help partners better understand Microsoft’s overall SaaS and managed services strategies.
Posted In: Attenda | Finance | Managed IP Services | Managed Service Provider | Managed Services | Marketing | Microsoft | Sales | Service Level Agreements | Software as a Service and Hardware as a Service
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This is interesting stuff! I think the most nerve racking thing about planning for success in this business over the next few years is understanding the relationship and economics of how MSPs will interact with the major software/service providers. Microsoft and most others selling to small business are heavily reliant on the channel; it will be interesting to see how business model come together to make it equitable for both parties.
Mike
http://www.everonit.com
http://www.smbitpros.com
I participated in Microsoft first presentation of their SAAS incubation initiative in NY about 1 year ago.
Firstly I liked the idea very much and wanted to go through the whole qualification process and join the excited crowd. The pitch was that the ISVs (independent software vendors) lacking management expertise and capabilities. So Microsoft wanted to put MSPs and ISVs together. But after the announcement more news started coming up. First that Microsoft investing huge amount of money in datacenter building their own capacities, then we saw Microsoft moves against SaaS vendors like SalesForce and small business software like QuickBooks. Microsoft also announced their initiatives in remote storage and cloude computing. So to “join” Microsoft MSP program is like join your competitor’s initiatives.
Microsoft also forces to use Microsoft tools to manage participated datacenters and were talking about helping ISVs to take and rewrite their software.
Microsoft is a big shark that can run over a small company like ours without even noticing us. At the same time we are the chefs in restraints. They just supply raw products. We are the ones who decide what is good for our clients and what is not. Digital Edge decided that we should not comply or follow or participate.
My strong opinion is that we have to stay on the client’s side and carefully assess software and hardware vendors, their effectiveness and efficiency. Do what our client would benefit the most versus of doing what vendors what, even though they are big.
http://www.digitaledge.net/aboutarchitecture.dex