At first glance, ConnectWise and OnForce have vastly different business strategies. But take a closer look and you’ll find that the two companies appear to be on a collision course — especially as managed service providers (MSPs) seek to outsource work to one another through trusted partnerships.
ConnectWise specializes in professional services automation (PSA) software — which allows VARs and MSPs to automate many of their business processes. OnForce, in stark contrast, operates a large online marketplace that allows VARs and MSPs to outsource work to one another across the US and Canada. And OnForce earlier today announced major enhancements to its marketplace.
Now here’s where things get interesting:
- Autotask — which is ConnectWise’s primary rival — recently announced a relationship with OnForce. The deal provides integration links between Autotask’s PSA software and the OnForce marketplace; the relationship allows Autotask customers to manage outsourcing engagements with OnForce’s 13,000 active community members.
- ConnectWise, meanwhile, operates ConnectWise Network — an online marketplace for ConnectWise customers to outsource work to one another. During the ConnectWise Partner Summit last week in Orlando, CEO Arnie Bellini described several forthcoming enhancements to the network.
Both efforts offer a range of benefits. The OnForce strategy allows any VAR to work with any VAR — as long as they join the OnForce marketplace. The ConnectWise Network, in contrast, is far more targeted but allows ConnectWise’s customers (many of whom are fiercely loyal to Bellini) to work with one another.
Next Moves?
Over the next few months, I expect ConnectWise and OnForce to sort out their respective global marketplace strategies. During the ConnectWise Partner Summit, Bellini hinted that a broader push for the marketplace could be coming — though the company has no comment about those potential efforts at this time.
Meanwhile, OnForce has opened its marketplace in Canada and is now exploring potential opportunities in Europe. OnForce insiders say the company is evaluating several next-step strategies including:
- Whether to build or buy an IT marketplace in Europe.
- Or whether to hold off on Europe, and instead launch new types of marketplaces in North America focused on other industries — such as home improvement/home maintenance services.
Regardless, I expect Bellini to continue investing in the ConnectWise Network as a targeted alternative to the OnForce marketplace.
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Tags: Arnie Bellini | Autotask | ConnectWise Network | IT service provider marketplace | MSP outsourcing | OnForce | VAR outsourcing
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Joe: ConnectWise and OnForce are actually creating integration. Both OnForce and ConnectWise don’t see each other on a collision course….rather we see ourselves creating meaningful integration to help the independent service provider a broader set of resources. The ConnectWise Network will always be in place and will surplant of of the reasons an IT Service Providers would use OnForce…but in the big picture, when IT Service Providers get used to working with other IT Service Providers all the rules change. It is that change that ConnectWise and OnForce have in common. So we have agreed to integrate and work together. Ray Norda of Novell said it best…it is Coopetition. Cooperate and compete at the same time. Both OnForce and ConnectWise are very excited about this arrangement. We think the channel benefits tremendously.
Arnie: Has the ConnectWise-OnForce development work been announced yet? I fully agree with the spirit of “Coopetition” (to cooperate and compete at the same time). You’ll find that it’s a common theme across all of our sites (MSPmentor, The VAR Guy, etc.). Thanks for your perspectives. Looking forward to seeing the next round of ConnectWise Network enhancements.
Interesting. So, what happens when you add “Master MSPs” to this network of vendors helping service providers outsource to other service providers? This idea of “coopetition” I think will become a “do or die” way of doing business in the Channel. Meaning, those vendors who integrate the most with other vendors will allow their partners to flourish in the face of serious competition and that is good for both sides of the equation.
For partners that means if you want to go head on with the Dells and Microsofts of the Channel, you better be thinking about working closely with your Community of vendors and peers. And, the vendors you want to work with the most are the ones who are open to integrating and seeing ways to co-compete.
Amy Luby
http://www.mspsn.com
aluby at mspsn dot com
Amy: Hopefully, the Master MSPs will help readers navigate and integrate multiple services across multiple clouds.
Readers: Master MSP is a trend describing Amy’s business (MSPSN) and other MSPs that host services for other VARs. Additional Master MSP examples include Ingram Micro Seismic and Do IT Smarter.
These so-called Master MSPs help channel players speed the transition to managed services. And hopefully, as new cloud services emerge, the Master MSPs will drive integration between those services.