MSPmentor

It’s a question I get asked all the time: How much is a managed service provider (MSP) business worth, and what metrics should MSPs use to set their company valuations?

I still don’t have an exact answer for readers, but here are some clues based on anecdotal info I’ve gathered plus Hewlett-Packard’s buyout of Electronic Data Systems (EDS). Read More >

Call it a technology paradox: Even as the managed services market grows rapidly, it also consolidates through mergers and acquisitions. The latest such deal involves two Cisco Systems partners — ePlus and Network Architects — getting together to better target commercial customers.

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If Hewlett-Packard buys Electronic Data Systems, as The Wall Street Journal is speculating, it could mean good news for managed service providers.

Think about it for a minute: Dell has already moved into the managed services market. And Microsoft is sizing up the MSP space. Likewise, Hewlett-Packard could be developing software or buying platform providers to better manage the company’s own servers and desktops — especially in small and midsize businesses.

But an EDS buyout could distract HP for years to come, leaving MSPs plenty of opportunity to manage small and midsize businesses that deploy HP gear.

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When ConnectWise and Kaseya announced new cross-company efforts earlier today, it made me wonder: Which managed service platform providers are best positioned to sit at the middle of the MSP universe?

First, let me tell you a little about the ConnectWise-Kaseya relationship. Then, I’ll share a few theories about how the MSP platform universe is evolving.

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As I was scanning a few of my favorite blogs, I noticed CNet writing a bit about Untangle — the open source security gateway provider.

Untangle, as MSPmentor readers know, has gained some momentum with managed service providers. But CNet’s blog, The Open Road, takes a closer look and tracks Untangle’s successful transformation from a proprietary software provider into an open source specialist. Here’s what CNet had to say.

This is the latest indication that open source truly has penetrated the managed services and SaaS (software as a service) markets. Here’s an earlier piece I wrote about open source converging with managed services. I think the trend continues to accelerate because savvy MSPs can “get under the hood” and truly customize open source to fit their needs.

I’ve been on the road all week, moderating events in New York, Minneapolis and Boston. Reliable WiFi connections have been critically important to me during this extended road trip. But unfortunately, a lot of big-name hotels and conference centers still don’t understand how to deploy and manage WiFi networks.

Instead of offering WiFi on their own, hotels should leverage managed service providers to set up, maintain and troubleshoot WiFi systems.

The situation is particularly shocking when you consider how many homes now have super-fast, highly reliable WiFi networks. Upscale hotels are supposed to offer all the comforts of home — and more. Yet when I visited the Millennium Hotel Minneapolis, the Hilton New York and the Park Plaza Boston, I was greeted by weak or non-existent WiFi networks.

Here’s why and how things have to change.

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I spotted a very interesting article on GigaOm today. It explores the factors you should weigh before launching your own storage cloud. It’s a particularly timely read for managed service providers that may own multiple companies, or may be seeking to get economies of scale for multiple customer settings.

Evidence is mounting that the software as a service (SaaS) industry is doing well — but not quite as well as financial analysts had expected. The latest anecdote comes from Blackboard Inc., a company that offers hosted applications to colleges and universities.

I’ve tracked Blackboard for numerous years while working at a college and also contributing to University Business magazine. Blackboard was among the first niche, vertical market software companies to truly master the SaaS business model. So, how are things at Blackboard, and what does the data mean to managed service providers (MSPs)? Here’s a look.

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