Symantec Protection Network (SPN), a software as a service (SaaS) platform launched in May 2008, is off to a solid start with managed service providers and VARs, according to Symantec Senior Director Chris Schin.
Still, Schin concedes that SaaS and the IT channel “are warming up to each other slowly.” His point applies to SaaS across the board — and certainly isn’t limited to Symantec. I spoke with Schin today to get an update on SPN and Symantec’s SaaS strategy for partners. Here’s a quick recap of the conversation.
From Microsoft to Symantec, dozens of software companies are trying to keep partners engaged with their new SaaS networks. But the results will vary from company to company, since many SaaS business models remain a work in process.
Symantec, like just about every other software company in the world, has been wrestling with the following question: If a small business can buy and activate a SaaS service with just a few clicks of a mouse, what role does the partner play in that process?
Schin and Symantec spent portions of 2007 weighing that question. Schin came up with the following answer: Symantec Protection Network needed to be customizable at the partner level. Specifically, partners would need a co-branded version of SPN in order to sign up customers. And on the back-end, SPN would need to track every partner, and the customers they bring into SPN. Using this approach, partners can receive recurring revenue based on the customers the sign up for SPN.
Symantec launched SPN as a full-blown network in May. The system has attracted “hundreds of active, trained, registered resellers bringing us customers,” says Schin. “We’re seeing an upswing in sign-up process.”
Is SPN perfect? Certainly not. In June, Jeff Kaplan of Think Strategies provided a great recap Symantec’s progress — and setbacks — with SPN to date.
Coming Soon: Security as a Service
At launch, SPN supported online storage services. Going forward, the company is working to build closer links between SPN and Symantec Hosted Mail Security (a solution that hosts Brightmail in a SaaS delivery model). Also, Symantec will begin to integrate security services into SPN, according to Schin.
When? Schin is a bit coy, but says partners should expect Symantec to discuss beta tests for new SPN services within the next few months.
So far, SPN is a US-only SaaS network because privacy and data management laws vary from country to country. Schin did not disclose if or when Symantec will begin testing SPN outside of the United States.
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Posted In: Managed Storage Services | Software as a Service and Hardware as a Service
Tags: Chris Schin | Managed Service Provider | Managed Services | MSP | Online Security | online storage | Software as a Service and Hardware as a Service | SPN | Symantec Protection Network
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Hey Joe,
I wrote a post close to a year ago now that outlines some of the ways I see SaaS ISV’s and IT Service Providers working together:
http://www.metricz.com/2007/08/saas-and-the-channel-what-now-what-next/
I’d love to hear what you and your readers think.
One key thought: I think there are great opportunities for new SaaS ISVs to leverage the incredible force that is the IT Channel, by keeping the IT Channel at the forefront of their business strategy, not an after thought.
I don’t in anyway mean to imply that other incumbent ISVs have made the IT Channel an afterthought in thier strategies. I can’t speak to that. However, I do believe that the opportunities for new entrants to form strong bonds with the IT Channel by coming up with creative ways to engage them and involve them in their businesses right from the start are huge. It’s more than just margins. It’s let’s create a brand new way to partner and serve our customers better.
Jesse: Good to hear from you.
I’m about to say something that goes against the channel in some ways, so I expect some flames: New SaaS companies often have little reason to partner with the channel. Look at companies like Salesforce.com. There’s little reason, initially, to work with resellers and integrators because the fastest way to the customer is direct through the web browser.
I’m not suggesting that all SaaS companies should have a pure direct model. An example of a good hybrid approach involves SugarCRM, the open source app company. Customers can deploy SugarCRM on-premise, or they can turn to a hosted model.
In the hosted model, customers can choose between SugarCRM’s own data centers or service providers that host SugarCRM on their own. That’s right: SugarCRM is competing with its own hosting partners. And that’s healthy, since it leads to better solutions for customers. The hosting provider typically has some specific vertical market expertise that allows it to differentiate from SugarCRM’s own hosting efforts.
So, the go-to-market model depends on the company. But on a few cases, SaaS software providers won’t necessarily work with MSPs and integrators. Microsoft and Symantec, however, are more inclined to work with partners because they don’t want to burn bridges with existing partners.
Hi Joe:
That’s exactly my point. Conventional wisdom says that new SaaS companies have little reason to partner with the channel. However, if you are the new SaaS company that DOES build the channel into your model, you instantly have a leg up on your competition.
SugarCRM may not be the best example, because of two important factors – their hybrid approach and their commercial open source model. It’s really a killer model, which has afforded them great strategic advantages and allowed them to grow their business at an impressive rate.
SugarCRM may or may not have actively tried to build a channel when they first started. I don’t think they really had to. It grew organically for them because of their business model. As interest and usage picked up, customizations did as well. Niche customized versions of SugarCRM began popping up, and firms began making money supporting, installing, customizing and hosting SugarCRM. SugarCRM just did a phenomenal job nurturing that community.
A pure play SaaS ISV would have a hard time scaling their business the same way, because they would need to build their application as an extremely flexible platform from the start. They would also need to find a way to get people engaged in using their platform, support those users, and build a strong community without simply providing the entire application source code.