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HaaS: Equus Countering CharTec… and More?

17 Comments on “HaaS: Equus Countering CharTec… and More?”

1. Frank Gurnee Says:
   
   May 20th, 2011 at 6:41 pm

   Hi Joe,
   Thanks for the write up! I would like to clear up that we are not creating a battle line between CT or any of the PSA’s. Can I call us Switzerland? We would like to create partnerships with Autotask, Connectwise, and Tigerpaw. All three have very solid communities and I have close friendships in all three organizations. Our goal with the solution was to do quite the opposite of creating dividers but instead allow “any” MSP to provide a solid, affordable, and sellable solution no matter which platform they have chosen. I would love to sit down with you at AT to go over exactly how we are doing just that.

2. Joe Panettieri Says:
   
   May 20th, 2011 at 6:49 pm

   Frank,

   Sorry if I pumped up the drama but I do see your move as heads-on competitive against CharTec. And of course I do look forward to speaking at Autotask Community Live.

   Best
   -jp

3. Terry Cole Says:
   
   May 23rd, 2011 at 2:52 pm

   Hi Joe,
   I had to put this is a “say-it-anyway” type of format. And, note that this is a pre-coffee response.

   I’m a CharTec partner and have attended their academy. I’ve personally spent time with Alex and the CharTec team. They are an open book. I mean, you really do receive the keys to the castle to their training and products.

   But, this has to be every owner’s biggest pain. I’m trying to put myself in Alex’s shoes right now. Hire someone, teach them everything, provide keys to the kingdom per se, and then they go make a copy of the keys and sell them to someone else?

   This may be a perfectly fine thing, but it hits me sideways.

   I’m not requesting a comment or response. Just my 2 cents.

4. Brian Nunn Says:
   
   May 23rd, 2011 at 4:25 pm

   Joe

   I’ve been a CharTec Partner for several years and have made numerous trips to their facility in Bakersfield. I’ve spent some quality time with both Alex and even Frank when he was with CharTec.

   I’m always looking for ways to improve my MSP business. And, I can appreciate that Frank has designed what appears to be (like you said) a third party vendor relationships HaaS’d with Equus hardware. This is great for price points and building relationships.

   Here comes the BUT… I need more tools for my business. Anyone that owns their own MSP business knows we need solutions for hiring, marketing, operations, organizing ticket load, tech training or even just someone to brainstorm with and bounce ideas off as a sounding board. CharTec does this for me. I’ve personally spent hours with Alex in his office talking about these items. Sure, CharTec has all the vendor relationships and hardware, too. But, what I really get from my membership is the personal attention, CEO service, support from the CharTec team and the ability to have the run of their 19,000sf MSP facility. Frank says that his solution has no membership barrier and will allow ‘any’ MSP to participate. I’m sure this is a great benefit for startups and gives them access to his solution quickly. But, I’m telling you I would pay to have access to the knowledge of the CharTec team, be able to pick Alex’s brain and visit their MSP facility for the same reasons I would pay to go to Disneyland rather than hang out at my local park for free.

   Thanks for the story, Joe. I’ll be following it.

5. Chip Bell Says:
   
   May 23rd, 2011 at 4:53 pm

   Joe,

   To echo the sentiments of others here, I think the fact that Chartec *is* a real MSP, really shows that it’s about a lot more than hardware an HaaS. In fact, after attending academy and striking up a professional friendship with Alex, I would say HaaS is 3rd or 4th on the list of benefits in terms of what we’ve gained by becoming a partner. I have increased our revenue over $400k, and it hasn’t even been a year yet. Yes we use HaaS, but I use ideas and materials from Chartec that I wouldn’t have ever even thought of on my own.

   What Chartec gives you is access to an absolute top dog that’s made the same successes and mistakes you have, albeit on a grander scale. It’s like SAN guys having access to GFS, or marketing people having access to Steve Job’s mindset. If you are learning from the best, guess which direction you’re headed?

   Competition is great for us all, but from what I’ve read so far, Chartec and Equus don’t even seem like they’re in the same ballpark. One is Hardware and nothing but hardware and tools. The other is a learning institution that can also help you with HaaS and those tools.

6. Joe Panettieri Says:
   
   May 23rd, 2011 at 6:00 pm

   Terry@3, Brian@4, Chip@5: I see both sides of the conversation. Employees need to have the freedom to take their talents elsewhere. But employers need to be able to protect their intellectual property.

   I’m not suggesting that Frank Gurnee did anything wrong by launching the Equus HaaS program. That’s really a conversation for Frank and Alex Rogers since I don’t have the inside details. And to their credit, both Frank and Alex have taken the high road during separate conversations with me in the past few days.

   For Equus to succeed with HaaS, Gurnee will need to execute, execute, execute. And for CharTec to maintain momentum, Rogers will need to maintain the customer service levels that each of you have described above.

   In my mind, business plans and strategies don’t matter all that much. Remember: Bill Gates described the Wallet PC back in the 1990s. But somehow, Apple created the world of iPhones and iPads while the initial Windows CE devices and Zune devices imploded.

   Apple innovated and executed. Microsoft did not. The story will be the same in the HaaS market. Success will come down to execution.
   -jp

7. Alex Rogers Says:
   
   May 23rd, 2011 at 8:07 pm

   Wow! Lots of chatter on this, Joe. Here are my thoughts:

   While we welcome Equus into a market space CharTec created and is flourishing in, it can be a slippery slope for those considering a partnership relationship with just any HaaS vendor.

   Everyone knows imitation is the greatest form of flattery, but the years we have spent in developing and enhancing our solution have evolved them into something much more than HaaS or hardware or even third party vendor relationships. At this point, it would be impossible to imitate the value.

   What separates CharTec from an imitator is the knowledge gained from spending two decades training, supporting and listening to our own MSP clients at ARRC. We understand our Partners needs and pain—we have them, too! Every solution our MSP creates is available to our Partners: sales training, BDR, VoIP, marketing, business operations, etc. This leads to a community of exclusive, successful and loyal partners who continue to grow their businesses as we grow ours. And, it is no small task to build and manage a community of successful MSP’s. The time invested and the relationships built are invaluable and can’t be imitated.

   And as you said, this all takes execution. Business execution. Educational execution. Industry execution. Personal improvement execution, and by that I don’t mean just exercising.

   We welcome organizations that grow and help the IT Nation, but we also need to shield our communities from business practices not on the up and up. As the MSP community knows, I am very passionate and vocal about what we do and how we protect and build our Partners’ businesses. And, I am seriously concerned about the attempt to commoditize the HaaS model by making it available to everyone. I’ve already been alerted to D&H and other component suppliers attempting to enter this market. If any company can HaaS, the integrity of the offering is actually threatened. Not every MSP company has the structure in place to support HaaS. And, component and system supply oriented companies do not always understand the support necessary to innovate HaaS. Dell is still trying to do it. Once this commoditization occurs, the results will be less profits for the legitimate, hardworking MSP’s which forces a lower service delivery level. This is not a gift to the channel, it is a poisoned apple waiting for a bite.

   CharTec is devoted to the integrity of our model and helping our community of Partners succeed by helping them be unique, stand out and sell. In fact, we have expanded an additional 10,000sf to provide our Partners with the training space, tools and over 25 different solutions they can access for their MSP offering. And, this expansion is just one of the 2011 values implemented. There are many more creative and revolutionary solutions in the pipe. CharTec’s goal is to serve and help our Partners continue on with their education and success. It’s about fueling innovation. Theirs and ours.

   And, I think we can all agree imitation can never replace innovation.

   Alex Rogers
   CharTec CEO

8. Leslie Eyton Says:
   
   May 23rd, 2011 at 9:17 pm

   Well said, Alex, right on target.

   As a former owner of a technology franchise location, I completely agree with Brian Nunn’s comments on what an MSP needs in order to grow successfully. My franchisor started off in the right direction by providing marketing, hiring and operations tools, but that gradually gave way to collecting vendors and trainers and offering them up for me to pick and choose from, and if I signed on with any of them, it was on my location’s dime. So for what was I paying royalties and marketing fees?

   In today’s information climate, “innovative” MSPs don’t need someone to go out and gather all the tools for them. In fact, most of them already either have the tools, or they sure know where to find them. The real issues involve how to use those tools and to do so with maximum effect. That’s what CharTec promises, and it takes a lot of commitment and sacrifice to put together the kind of support structure and training that they offer.

   My only recommendation to CharTec would be to not forget how it got to be where it is – i.e., to not lose track of its roots…

   But, Godspeed, Frank and company. You have a long road ahead of you.

9. Bill Black Says:
   
   May 23rd, 2011 at 9:40 pm

   As the leading CharTec HaaS partner, I’ve got to chime in here.

   I’m not surprised to see this announcement. I can tell you that Alex Rogers and his team have built an offering that will transform an MSP business. It was only a matter of time before someone else tried to imitate it.

   During the last two years, I have been able to grow my business using the tools, processes and techniques that everyone at CharTec has shared. Times change, people change and this crazy channel changes all the time. I’ve built great friendships with everyone involved and wish Frank all the best with Equus.

   CharTec has evolved from the large and successful ARRC Technology, and CharTec continues to adapt, learn and share ongoing successful processes and technologies from ARRC. I’m confident in CharTec’s abilities to continue to not only continue to provide excellent training and services, but to also share in relationships and the strengths of the combined companies.

   As a CharTec partner, you are able to not only learn and apply a myriad of solutions, you are also able to work with CharTec to develop a system that takes the pain out of everything from quoting to selling to implementation. The ability to sit down with Alex or anyone at CharTec or ARRC and get the “keys to the kingdom” is priceless.

10. Joe Panettieri Says:
    
    May 24th, 2011 at 8:09 am

    Alex@7, Leslie@8, Bill@9: Thanks for stepping away from work for a few minutes to share your views above. I think a lot of readers are trying to get their arms around HaaS. But that will change this summer. Google Chromebook for Business will take the HaaS conversation to the masses starting around June 15. But I think experts like you will continue to drive the HaaS conversation in the channel.

    Best,
    -jp

11. Terry Cole Says:
    
    May 24th, 2011 at 8:43 am

    Heard this past Saturday on an NPR talk show: “Google’s new Chromebook, a doorstop that can boot in 8 seconds.” (I know nothing about the Chromebook, but it’s funny anyway!)

    A product for a monthly fee is not unique or game changing in my opinion (see the copier industry), it’s a commodity. Getting a team that brings a business operating system (aka: network, experience, et al) with them for a monthly fee is a different conversation and value prop. Like Alex said above, Dell’s power and pockets haven’t been able to figure out how to do it yet.

    I’m not visionary enough to see the complex customer relationship that is embodied in a HaaS client-relationship being converted into something that can be bought out of a gumball machine at WalMart.

12. Joe Panettieri Says:
    
    May 24th, 2011 at 11:41 am

    Terry: There’s a small clarification here…

    Chromebooks are low-end notebooks from Samsung and Acer that will be available at retail.

    Chromebooks for Business is a HaaS/SaaS offering from Google and its partners, positioned for businesses and education customers. Not a consumer play. I don’t know if Chromebooks for Business will succeed or fail but the marketing efforts will allows VARs and MSPs to bring up HaaS alternatives/approaches with customers far more easily.
    -jp

13. Steve Phillips Says:
    
    May 25th, 2011 at 3:35 pm

    As of the “ANY” MSP’s that are talked about, I thought I would chime in. I have had many conversations with the Chartec, even with Alex himself at a few events. Chartec is the way to go when you are at a position to spend the money for the system. But in the meantime while I am barley making ends meet having been in business for a few months. I have a few clients that need HaaS but I can’t afford the CT start up cost.
    What I see Equus doing is filling that gap between start up and growing MSP. When I have talked to other business owners in the channel they have all said that CT was the best MSP education that they could get. Yes they offer products and services but everyone talked about the education. Even in the other posts in this thread say this.

    Would I rather start with CT right away and save my self some pain along the way? Well that’s a no brainier that I would. But I also need to make sure that I do the right thing for my family. And today that is going the long road with the Equus has until I can afford the CT program.

    -Steve
    SPhillips Consulting

14. Erick Wilson Says:
    
    May 25th, 2011 at 10:38 pm

    After several months of bugging Frank on the road last year, he finally convinced me to sign up with CharTec by ensuring me it was far more than HaaS. So we took him up on the offer and immediately attended an academy. Working with Jaime, Alex, Brian, Monique, Ginger and Frank one on one forever changed my business. We adopted many of the business processes from CharTec and that has caused us to be more profitable than ever.

    While I can’t speak for everyone, the biggest issue we had is closing the HaaS deals due to pricing. Even in trying to hide the costs in the monthly fee it was not doable for us in our market. So with the smaller items, such as firewalls, we just resorted to HaaSing these ourself to keep the costs lower.

    On the other hand I have also been working with Marianne and Jim with Equus for sometime and they are also one of the best vendors that I have ever worked with. The have an awesome RMA policy and best in class hardware just like CharTec. So when I learned on Monday that Frank and Equus would be rolling out a HaaS solution, I was elated.

    Having competition works in the favor of the MSP by keeping pricing competitive and customer service levels higher. This also keeps innovation alive as each tries to differentiate their business to better serve the channel. Equus is just another tool for us MSP’s to have in our tool box much like CharTec. It is no different than having an account with Synnex, Ingram and Tech Data. It allows you to have choices to find the best product or service for your business and I recommend every MSP have a partnership with both of CharTec and Equus.

    For CharTec and Equus it will come down to who does the best at paying attention to the details with their clients and not letting items fall through the cracks. It is things like when my sales rep mentions on Facebook that she is struggling to close a deal and someone like Frank and Brian makes themselves available to give personal advice on what to do to close the deal. If one becomes too busy to handle their client load and starts losing that personal touch, then I could easily see that MSP moving over to the competitor.

    I look forward to what is to come in the near future as I believe that Equus entering into this market is a definite game changer for HaaS.

15. Joe Gregory Says:
    
    May 29th, 2011 at 12:16 pm

    Interesting how there is so much talk of imitation considering IBM really pioneered HaaS with mainframes, Zenith revolutionized the MSP model and brought the BDR to the channel, and CEO and Sales tracks have been used for years in MSPU’s training. So who’s imitating whom?

16. Burgess Says:
    
    July 16th, 2011 at 9:12 am

    Thanks for the great insight. I think I will go with both Chartec and Equus. I am in total agreement with Eric.

17. Joe Panettieri Says:
    
    July 18th, 2011 at 2:33 pm

    Joe@15: Everything old is new again in high tech.-jp

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