Sources say something is cooking between ConnectWise and CharTec — which specializes in Hardware as a Service. What could be brewing? At first glance, I don’t know much. At all. (Surprised?) But take a closer look and you might start to see the bigger picture. It involves PSA (professional services automation) and RMM (remote monitoring and management) software companies eventually cooperating and competing in the cloud. Here’s why.
First, I need to rewind to September 2009 to set the stage for this blog.
At the time, ConnectWise issued a press release stating that the company was interested in potential acquisitions and financial relationships.
ConnectWise took some heat for a surprise mention of rival Autotask in the press release. But anyone who focused too much on the ConnectWise-Autotask debate missed the bigger picture: ConnectWise CEO Arnie Bellini was basically writing an open letter to the MSP industry, stating that interested parties should reach out to ConnectWise about potential business engagements.
Apparently, the open letter worked. I get the sense that ConnectWise is working on multiple strategic relationships for 2010. I’m not referring to generic marketing and API (application programming interface) relationships. Nor am I referring to outright acquisitions. Instead, I suspect ConnectWise is working on a creative middle ground with a range of software and industry partners.
Step 1: ConnectWise and CharTec
Now, back to the alleged relationship at hand: ConnectWise and CharTec.
ConnectWise competes in professional services automation (PSA) software. CharTec specializes in Hardware as a Service (HaaS). CharTec CEO Alex Rogers spent considerable time down at ConnectWise Partner Summit 2009 (Nov. 4-6). If you’ve never met Rogers, here’s a quick video introduction to his energy and HaaS expertise:
Meanwhile, ConnectWise’s Bellini has increasingly mentioned Hardware as a Service during recent webcasts and conferences. In fact, he briefly mentioned HaaS during his ConnectWise Partner Summit keynote. It wasn’t a coincidence.
Fast forward to the present, and I’m starting to hear some chatter. I admit, all I’ve got from my sources so far is that something is cooking with CharTec and ConnectWise — the relationship is going to get much bigger for 2010.
But how much bigger?
Step 2: HaaS Enters the Cloud?
Now, time for my own speculation.
It starts in the HaaS market and leaps into the cloud. Several MSPs — including masterIT — already profit from HaaS. And a range of consulting firms and financial advisors (from CharTec to MSP On Demand to Stu Lustman) assist solutions providers with their HaaS efforts.
But overall, the HaaS market remains in its infancy because so few VARs understand how to make the leap from leasing to true HaaS engagements. The recent global financial crisis and credit crunch didn’t help matters.
Still, ConnectWise’s Bellini has made it clear: He sees HaaS converging with cloud computing. And CharTec’s Rogers is a dynamic HaaS evangelist. This is going to get interesting, folks.
During ConnectWise Partner Summit, Bellini told MSPmentor he’s aiming to build a channel-friendly cloud where everything — including traditional desktop hardware — gets virtualized. I suspect that means ConnectWise’s cloud strategy will involve a HaaS relationship.
Also at the summit, we captured some of Bellini’s cloud perspectives in this video:
Step 3: PSA vs. RMM Companies In the Cloud?
Today, I’m sort of stuck in a waiting game. Even as I dig for more potential news on the ConnectWise-CharTec front, I’m trying to develop a bigger-picture blog entry.
It goes something like this…
In early 2010, we will potentially see dramatic changes to the MSP software landscape. Consider the following variables:
- UPDATE (Dec. 3, 9:24 p.m. Eastern): PacketTrap Networks acquired, MSPmentor has learned.
- In addition to potential business and financial relationships, ConnectWise is preparing to launch ConnectWise 2010 — a new version of the company’s flagship software.
- Level Platforms and N-able both are preparing major platform updates.
- Autotask continues to expand its installed base in the pure SaaS market.
- Zenith Infotech is polishing its cloud efforts.
- And Kaseya is nearing the launch of its SaaS and cloud platform.
A key point in all this: During the Kaseya Connect user conference back in May 2009, Kaseya CEO Gerald Blackie told me Kaseya would offer some limited PSA (professional services automation) capabilities with its SaaS-based system.
At the time, I didn’t do much with that little item because I didn’t want to “create” the perception that a showdown between PSA and RMM companies could emerge in the cloud. All I had was a statement from Blackie that I needed to noodle on a bit more.
Step 4: Coopetition
Still, I couldn’t let go of this nagging hunch that Kaseya and the established PSA industry would wind up competing on some fronts in the cloud.
In this case, we’ve got on-the-record statements from Kaseya’s top executive from May 2009 stating that the company plans to make some limited but significant PSA moves in the cloud. By September 2009, ConnectWise was on the record stating they were open to making some industry investments.
By Q1 2010, we should see just how far Kaseya is going with PSA and just how far ConnectWise is going with deeper potential relationships with a range of partners. One such relationship — involving ConnectWise and CharTec — sounds very real to me.
Either way, I believe we’re heading for “coopetition” (that is, cooperation and competition) between PSA and RMM providers in the cloud.
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Posted In: Professional Services Automation (PSA) | Remote Monitoring & Management Software | Software as a Service and Hardware as a Service
Tags: Autotask | CharTec Alex Rogers | ConnectWise Arnie Bellini | ConnectWise Partner Summit | Kaseya | Level Platforms | N-able | Professional Services Automation | PSA | Remote monitoring and management | RMM | Zenith Infotech
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Wow! Interesting. Not sure how much truth there is about it. But interesting none the less!
Brian: There’s only one real piece of speculation in the entire piece… When does the coopetition begin?
-jp
Well, it’s going to be a late night here at MSPmentor. A $600 million (+/-) software company has just acquired an RMM (remote monitoring and management) tool provider. Here are the details.
-jp
Joe:
Interesting article and interesting insight on your discussions with Kaseya. At ConnectWise we are dedicated to providing the IT Nation (all IT solution providers) the best solution to run their business and integration to the Best tools and products.
As Gerald (Kaseya) says “We take a position and we’ve made it clear to [PSA vendors] that the industry will shake out,” says Blackie. “There will be a system of record. That means there will be one base that everyone processes to.”.
I would have to agree with
Gerald. We feel ConnectWise is that solution and ConnectWise will always have deep intergration to Kaseya and all other RMM tools. It is about giving the IT Nation choices.
It is also about positioning the IT Nation to be the best providers of solutions to the SMB market. ConnectWise was founded on those principles. We will continue to advocate and empower the importance of the IT Nation; and will invest in products and solutions that make that a reality. Maybe that will be offering or promoting a HAAS solution. It certainly will be to offer a channel freindly cloud. Who knows what else? Our partners will tell us and we will listen, invest and act in their best interest. Someone has to!
Arnie Bellini
CEO, CPA, MBA
ConnectWise
It sounds fantastic – imagine the combined energy of ConnectWise and CharTec. 2010 is going to be a great year for the IT Nation, and this would be an exciting bonus if you have credible sources for your suspicions.
Arnie@4: Thanks, as always, for offering your additional insights. We’ll be listening for clues about where you and other software players are heading next.
Bill@5: Thanks for your comment as well. I have not received any official confirmation from Arnie or ConnectWise or CharTec about the suspected ConnectWise-CharTec relationship.
But I’m highly confident in my sources. Otherwise I wouldn’t have written the blog. And if I’m wrong you can count on me to eat crow in a follow-up blog. Thanks again for reading.
-jp
I’m not sure on the future relationship between Connectwise and Chartec but here is my 2cents as a MSP.
It said a lot when Chartec was referenced by Arnie in his opening and closing presentations. I did not feel it was any type of build up for future acquisition purposes, but what do I know.
For those that have witnessed Arnie’s “passion for Dell” over the recent years and the speculations he has put out there about commoditization of what many of us “little guys” used to build out businesses on, you get Arnie’s excitement that a company like Chartec is making huge strides to offer a creditable alternative to our “IT Nation”. Is this more than excitement? I like to hope not.
Now if you have had the opportunity to catch the very excited Alex Rogers speak, you know he shares this “passion for Dell” with Arnie. I was in CA in August when the two first met and it was like fireworks. Alex has been in the little guys shoes for 17 years and worked through what many of us go through. He knows many of our pains, has come up with his solutions and in turn bottled it.
I feel like Arnie mentioning Chartec is him letting our IT Nation (he is helping to build) know there is a badly needed alternative out there right in the crowd. Is it that simple? I hope so.
We have been using Chartec and ConnectWise for a couple of years. So here is my perspective. Both partners have helped me increase my business (had our best month last month), even in this market! As for their support to me? It’s been fantastic!
Chartec has given me the ability to compete with companies like Dell on a level I could never have done on my own without the huge up front investement. I have stopped using Dell due to their business practices because of how they deal with VAR’s. Sharing my love for Dell!
ConnectWise has also been a great partner in that I am now able to manage my small IT business like the big boys without a huge investment. The ability to integrate my partners into one system is a huge plus.
To the point! If ConnectWise and Chartec are partnering together to provide a more complete solution that allows me to provide services with the big boys? I don’t see the downside!
Just my two cents!
Steve Eyton
President
MSP Provider
Ayce IT / Expetec
Nice! We can Haas it or Buy it from CHarTech Right? Private labeled also. I have been a Connectwise partner for a year now and first heard about Chartech at MSPU – I continue to hear great things about them. Can anybody tell me any other experiences with Chartech. I have realized that Haas is definitly on our roadmap and needed. I saw Alex speak at a conference earlier this year (He is Wild and has some serious passion for our industry)but it almost seems to easy. Whats the Catch? Alex’s big point was you can easily get back to making money with hardware instead of dealing with DELL or just sending your clients to DELL. Which I agree big time – I cant say what i really want to say about DELL but i am sure you can imagine. If Arnie does in fact see somthing in this company I am going to look a little closer at them. What else does he have up his sleeve Joe? Any Ideas? Maybe invest in a training company also that would teach us how to put all these pieces together in one fantastic offering.
Joe – thank you for this site I love it!
James
Jim: Thanks for your perspectives. We’ll continue to watch ConnectWise for potential signs of a deeper CharTec relationship (stay tuned… we stand by our report) and I think it’s safe to say we’re going to see a range of additional relationships surface. Sorry I’m not saying more (yet…).
And no need to “thank” me for this site. A lot of people at Nine Lives Media Inc. are responsible for MSPmentor. And without reader and sponsor support we’d be sunk. I’m just the lunatic within Nine Lives who grabbed the keyboard and started blogging.
-jp
Spider sense is tingling. Got a hunch (or more) that this long-rumored relationship is moving forward… Stay tuned…
-jp