Plenty of MSPmentor readers are heading to CompTIA Breakaway (Aug. 9-12, San Antonio). No doubt, the conference will stir plenty of cloud channel chatter. I wonder: How many VARs and MSPs attending Breakaway generate some revenues from cloud and SaaS applications right now? Also, how will the worlds of managed services and cloud computing converge? Here are some clues.
Before writing this blog, I re-read recent MSPmentor contributions from:
- Jason Beal (Memo to Channel Partners: How to Avoid Cloud FUD);
- Sam Gutmann (How to Choose a Managed Services Vendor); and
- Phil LaForge (Five Sales Plays that Separate MSP Leaders From Laggards).
Here’s why:
- Beal makes the case that managed services and cloud computing are close cousins (I agree);
- Gutmann describes how VARs and MSPs can protect their brands while potentially embracing cloud and SaaS services; and
- LaForge highlights MSP sales strategies, which I think apply to the cloud industry as well.
Those themes should echo at CompTIA Breakaway 2010. Remember, CompTIA acquired MSP Partners in September 2009 — so managed services chatter has been growing within CompTIA. Fast forward to the forthcoming CompTIA Breakaway conference, and you’ll notice plenty of cloud and recurring revenue topics on the agenda.
The Real Question for VARs and MSPs
Some people still ask “is the cloud real?” Frankly, I think that debate is over. Check out The VAR Guy’s SaaS 20 Stock Index and you’ll see a lengthy list of growing, profitable, publicly held SaaS- and cloud-centric companies.
Still, channel partners face at least four lingering questions in the cloud world:
- What types of cloud and SaaS solutions, if any, do my customers want?
- How can my company profit from those potential SaaS or cloud opportunities?
- To meet those potential customer needs, do I build those solutions or partner to offer them?
- How do I maintain brand control and customer control every step of the way?
Hybrid Cloud
It’s also important to keep the cloud in proper context. Amid the mixed economic recovery, sales are booming for on-premises servers, PCs, notebooks, network hardware and other infrastructure. That’s why organizations like SMB Nation and vendors like Intel are talking up hybrid cloud business models.
The cloud may not rule the IT world. But it’s here to stay. The ultimate question: Which MSPs will participate in cloud profits and which will cower in fear? I’ll be searching for answers at CompTIA Breakaway.
Sign up for MSPmentor’s weekly Enewsletter, Webcasts and Resource Center. And follow us via RSS, Facebook, Identi.ca; and Twitter. Plus, check out more MSP voices at www.MSPtweet.com.
Read More About This Topic
Share This Post
Posted In: Events | Marketing | On Premise | Sales | Service Level Agreements | Software as a Service and Hardware as a Service | Virtualization
Tags: bkwy10 | Cloud computing | Cloud Stocks | CompTIA | CompTIA Breakaway | Ingram Micro Seismic | Intel Hybrid Cloud | Intronis | Jason Beal | MSP Partners | NimSoft | online backup | Phil LaForge | SaaS | SaaS 20 Stock Index | SaaS Stocks | Sam Gutmann | SMB Nation
Interact: Add a Comment | Trackback Link | Permalink
Subscribe: RSS Feed
Take a look at our 
Joe raises some good points, and it’s something that’s top of mind with CompTIA and its members. The CompTIA Cloud/SaaS Community is actively working on defining cloud computing and identifying business models specifically for the channel. Some of its work is probably going to be released at Breakaway next week.
Beyond the vendors providing cloud services and the market opportunities for resellers, there are several thorny issues facing the channel as it transitions into the cloud. The Channel Vanguard Council is hosting two sessions at Breakaway regarding evolving compensation models for services businesses and revenue recognition models as resellers transition from capital sales to operational sales. These sessions will address core issues of how to compensate sales people for engagements that may outlive their tenure and how to effectively designate and recognize revenue.
The cloud is more than just about the vendors and technologies; it’s about the business models and maintaining protracted viability.
Larry: I’ll be sure to check out the council. Safe travels.
Readers: This just in… Spiceworks says 14 percent of SMBs used cloud services in 1H 2010, and other 10 percent have plans to deploy cloud-based services. Also, adoption is 2X higher in companies with fewer than 20 employees vs. those with 20-99 employees. As Spiceworks notes, “It’s a classic case of it being easier to change the smaller (and often) newer you are.”
-jp