I’m hearing a familiar trend in the managed services market: MSPs seem to be embracing more and more open source tools. The latest example involves Zenoss, a commercial open source company that specializes in applications, systems and network monitoring.
I am not suggesting that open source will dominate the managed services sector. But a growing number of service providers are deploying open source administration tools from Zenoss, Groundwork Open Source and Untangle. Here’s why.
Different Cars for Different Drivers
Open source tools like Zenoss come in two flavors: A free version (consider it the “Chevy”) and a paid, subscription-based version (consider it the “Cadillac”), notes Mark Hinkle, VP of community at Zenoss. While the “Chevy”version is fully funtional, the “Cadillac” version includes features for larger service providers managing tens of thousands of devices, notes Hinkle.
Zenoss adopters include:
- Rackspace, the big hosting company chose Zenoss over OpenView, Hinkle says.
- OpSource, a platform provider that helps businesses move to SaaS. OpSource used Red Hat Command Center before switching to Zenoss, Hinkle says.
- Coleman Technologies Inc., a major Cisco managed service provider. The company switched from Dell Silverback to Zenoss, claims Hinkle.
In recent months, Zenoss and GroundWork both claim to have disrupted traditional IT management tools like OpenView, CA Unicenter, IBM Tivoli and BMC. GroundWork, in particular, has been attacking OpenView on multiple fronts.
Meanwhile, some top MSPs — including DirectPointe — have built businesses on top of open source. In fac, DirectPointe is now spinning off a new, open-source focused business to help further automate small businesses.
Six Reasons for Open Source
What’s driving open source’s momentum with managed service providers? Here are six possible answers:
- Fast Starts: MSPs can download code for free can get started instantly without signing complex licensing agreements
- Code Access: MSPs can get under the hood of open source and customize code to meet specific client needs
- Software as a Service: More and more open source tools are available through a SaaS model, further accelerating deployments
- Fast Answers: Many open source companies have strong online communities, where volunteers and hackers (the good kind…) are eager to answer user questions
- Linux: Now firmly established in data centers and network operation centers, Linux has paved the way for MSPs to push forward with open source applications and management tools
- The Economy: During bad economic times, MSPs are more inclined to aggressively search the market for niche solutions that they may have overlooked during boom times.
Again, I’m not suggesting open source will dominate the MSP market anytime soon. I suspect fewer than 5 percent of MSPs use open source remote management tools. But I bet that figure grows 50 percent annually for the next three to five years, taking open source market share among to 7.5% of MSPs in 2009, roughly 11% in 2010 and roughly 16% in 2011.
Of course, those are guestimates. Even if you think they’re too optimistic there’s no denying open source’s growing influence in the MSP industry.
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Posted In: Platforms
Tags: BMC | CA Unicenter | Cisco Powered Managed Services | Coleman Technologies Inc. | Dell Silverback | DirectPointe | GroundWork Open Source | IBM Tivoli | Open source managed services | OpenView | OpSource | Rackspace | Untangle | Zenoss
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Three follow-up stats I should have included in the original blog. Zenoss has…
1. 18,000 customer deployments
2. 20,000 downloads per month
3. 750,000 downloads in total since launch
Interesting stats, to say the least.
Coleman Technologies Inc. is a good outfit and I trust their judgement on remote management. But how “free” is “free” when it comes to Zenoss? Is the free version really a Chevy or is it a Yugo?
I’m biased, so please take that in to account with what I write below - but I’ve also been working for monitoring solution providers for over 20 years, so I’ve seen lots of pretenders.
Zenoss quote Rackspace as a customer, and no doubt that’s true. But did you know that Rackspace are also major customers of Nimsoft, and have been for 4+ years. See the press release here http://www.nimsoft.com/mspzone/news/press-releases/2006-18-11.php
They also quote OpSource as a customer, and I happen to know that Opsource are also customers of multiple other tools as well.
So…when Zenoss are quoting these companies as “our top MSP references”, are they really saying that they “downloaded our software and are using it in a small part of their business” or are they saying that they are running their mission critical business with their products?
The title of the article includes the word “(Again)” and I think you are spot on Joe. Without wishing to be a cynic, but “opensource” monitoring companies like Zenoss have to make money too and if the software is “free” then they have to charge a fortune for services. After all, last I checked I didn’t see many other of the opensource monitoring vendors growing their business much (several will fail in the next 12 months).
An MSP’s business is all about providing a quality customer experience and to do that they need a provider of monitoring software that actually wrote the code themselves and are going to be there to support them and understand their business.
Sure, there are always going to be MSPs that are looking for the cheapest possible alternative, but as you scale the business, quality of service becomes a much more important differentiator.
I’d invite your readers to check out the Nimsoft MSP Zone, http://www.nimsoft.com/mspzone/index.php
As we like to say, “we are not the first monitoring solution that an MSP will need, but we are last”.
surprised no mention of Hyperic?
@Frankie Your skepticism is fair but then again the software is out there for you to download(http://www.zenoss.com/download) and draw your own conclusions. Our forums(http://forums.zenoss.com) are out in the open warts and all (we’re good but not perfect). I don’t think you could be much more open with your kimono then that.
I would challenge you to download and try Zenoss and get back to me. I guarantee at a minimum you could effectively monitor your whole infrastructure at a level similar to any commercial alternative.
Mark Hinkle
VP of Community
http://www.zenoss.com
mrhinkle (at) zenoss.com
MatthewM: Care to tell our readers how Hyperic is influencing the MSP market? The floor is yours (we welcome readers weighing in with perspectives). If you’d rather pass, we’ll follow-up with some Hyperic info later this week.
Gary: Thanks for your thoughts. I think the media — and IT managers — spend far too much time associating open source with “free.” The open source vendors are guilty of that, too.
If you’re looking for a free solution, you often get what you pay for. I think the open source conversation has to shift from “free” to quality and value. Access to source code allows everyone to polish and/or enhance the code.
We also need the IT media to offer both sides of the story. As you’ve pointed out, a large number of open source companies have struggled to monetize their products … and many will go out of business.
Think about it: Only Red Hat has managed to launch a major open source IPO in the past decade. MySQL chose to sell to Sun; SUSE Linux sold out to Novell. The lack of IPOs suggests that the open source model needs refining.
I see value in a blended approach — MSPs should open their eyes to both open and closed source approaches, picking and choosing best-of-breed solutions.
But MSPs who completely ignore open source are over looking some great opportunities.