HaaS allows VARs and MSPs to earn recurring monthly revenues from a variety of hardware — netbooks, notebooks, PCs, servers and more. But every time the HaaS market seems to be moving forward it also seems to take a step back.

On the upside, companies like CharTec have made a living promoting HaaS to MSPs. Many of the engagements involve storage appliances that generate recurring revenues. And in the storage market, providers like Axcient and Zenith Infotech (among many others) have offered on-premise appliances as part of a monthly recurring revenue opportunity to channel partners. Those offerings aren’t exactly positioned as HaaS, but some folks could argue that the solutions are HaaS-driven.

Managed print services can also fit the HaaS description, since many deployments involve leasing or financing agreements with ongoing contracts for consumables (ink and paper). Moreover, hosted unified communications sometimes fits into the HaaS discussion, especially if customers pay for their desktop phones and dial-tone as part of a flat monthly fee.

Rethinking Our Enthusiasm

So far, so good. But when we launched MSPmentor in 2008, the HaaS buzz seemed to be much louder. A lot of readers thought HaaS may eventually dominate their business. MSPs, so the theory went, would become total IT service providers, including hardware as part of a flat monthly IT fee to SMB customers.

Among the trends we misread: The rise and evolution of netbooks, tablets and Google Chromebooks. Back in 2009 and 2010, numerous cellular service providers offered netbooks for free as part of a monthly broadband/mobile-wireless contract. We thought that would be a big long-term trend. But the netbook craze fizzled out when Apple’s iPad redefined the mobile user experience.

Fast forward to 2011, and MSPmentor believed Google Chromebooks had a chance to redefine the HaaS market. Google’s so-called Chromebook for Business and Education effort allowed customers and students to purchase Chromebooks and cloud-related services for roughly $20 to $30 per month. But now that Google’s partners are slashing Chromebook prices, I  get the feeling that the devices aren’t selling.

Another limiting factor for HaaS: Some MSPs became nervous about the market back in 2010, when N-able Technologies filed suit against MSP on Demand, a HaaS provider, over alleged fraud. That case apparently remains in a North Carolina court. A judge on Nov. 2 apparently asked all parties in the case to file a status report on or before Nov. 18, 2011. We’re checking in with our sources now for any potential updates.

In the meantime, HaaS remains a growing opportunity on many fronts. But will the HaaS market ever regain all that buzz from 2009 or so?

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1. No (New) Hardware Required: CharTec has launched a software version of its BDR (backup and disaster recovery) appliance. It apparently leverages existing customer or MSP hardware. Without mentioning rivals by name, it sounds like CharTec will position the software as a way for Zenith Infotech partners to potentially migrate to CharTec’s BDR solutions without swapping out on-premise hardware. eFolder introduced a similar migration strategy in October.

2. Heard Elsewhere: Former LANDesk Regional Director Jon Gibbs has joined CentraStage, and will lead CentraStage’s US expansion. CentraStage is a remote monitoring platform that got its start in Europe.

3. Plugging In: OS33, which develops an IT as a service platform for MSPs, is previewing its ConnectWise integration at IT Nation. The move is intriguing because a growing list of MSPs and data center providers are leveraging OS33 for a range of services, including alternatives to traditional VDI (virtual desktop infrastructure). Separately, Symform says it has integrated its cloud storage solution with ConnectWise.

4. Worth Noting: Symantec is on hand for the first time at IT Nation. Separately, Channel Chief Randy Cochran has been dropping hints about his managed services focus in a Symantec blog. Stay… tuned…

5. You’re Hired: Zenith RMM has named Dee Zepf VP of product management and technical services. Zepf is a veteran of Care.com, IBM, Bowstreet, Idealab and Lotus. She joins Zenith RMM at a turbulent time, as they company strives to maintain relations with Zenith Infotech while distancing itself from Zenith Infotech’s recent bond default.

6. Sales Proposals… and More: QuoteWerks 4.7, an upgraded sales quoting tool for MSPs and VARs, debuted today at the show. Roughly 25 percent of ConnectWise partners already run QuoteWerks to help with sales proposals, QuoteWerks claims. I’ll swing by the booth for more info. Meanwhile, Quosal has integrated its sales quoting and proposal software with Cisco’s QPT (Quick Pricing Tool). I’ll be catching up with Quosal CEO Kent McNall during a panel session at the conference.

7. New Company, Crowded Market?: PointClickWork apparently is launching at IT Nation. The company claims it will offer MSPs cloud solutions that span infrastructure, software licensing, and delivery.  The team includes IT solutions providers who have been in the market for 20 years. Also, PointClickWork says it will help MSPs to brand, market, and effectively convert their clients to a cloud-based model without the headaches of the traditional desktop (or hosted desktop) architecture.

Intriguing… but portions of that sales pitch are starting to sound familiar. ChannelCloud, also launched by MSP veterans, has been helping channel partners get into the cloud for a year or two now. And LevelCloud — also launched by MSP veterans — is leveraging OS33 and seeking to make some noise at IT Nation.

8. Printing Money?: Tim O’Brien, director of managed print services for Oki Data Americas, will be talking up recurring revenue opportunities for VARs and MSPs. Yes, I believe in the managed print services market. But I’m also a realist: Fewer than 20 percent of the world’s top MSPs offer managed print services. The data has been consistent for the past four years, based on our annual MSPmentor 100 survey. It’s up to O’Brien, Oki Data and other printer makers to convince MSPs that managed print is worth the effort.

9. Half A Solution: Cloud computing — particularly cloud storage — will generate lots of noise at the conference. But don’t ignore the other huge trend: Mobility, and in particular… Mobile Device Management. MSPs have to re-work their pricing, onboarding and support practices to reflect modern IT environments that include Google Android, Apple iOS, tablets and smart phones.

10. Beyond the Modern Office: ConnectWise CEO Arnie Bellini described his modern office vision at least year’s event. It basically helped MSPs to understand (A) which IT services would remain on-premise, (B) which IT services would shift to the cloud and (C) how to monetize both realities. Bellini’s told MSPs to build in-house help desks to maintain close customer engagements, and to focus on vendor management to help customers navigate multiple engagements.

Another key theme for Bellini: Defending the last mile of IT, as big cloud services providers attempt to potentially sell direct to customers. It’s safe to expect Bellini to build on those themes this year… with some surprise twists mixed in.

That’s all for now. We’ll offer regular updates from IT Nation the rest of this week.

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“We introduced MPS to the market about 11 years ago but we called it MOS — Managed Output Services,” Joyce explained. It wasn’t until 2003 that Xerox landed its first major MPS/MOS deal –a seven-figure contract with a well-known pharmaceutical company. That’s also when Xerox was named to the Gartner Hype Cycle — a report that evaluates the maturity of technology companies. According to Joyce, the evaluation outcome is almost an afterthought compared to just being on the Hype Cycle itself. “The minute you get on that Hype Cycle, it starts to legitimize your business,” he said.

More recently, Xerox has repeatedly landed on the Gartner Magic Quadrant for managed print services.

Of course, competition looms around every corner. Joyce identified Ricoh and HP as Xerox’s two main competitors. And the market has been active with merger and acquisition (M&A) activity. For instance, Xerox has acquired NewField IT and HP has acquired Printelligent.

True believers in managed print services include colleges and universities. A recent Xerox win involves a major Ohio community college, while Ricoh scored a deal with Benedict College.

Still, Xerox claims to control 47 percent of the managed print services market. Most of the company’s MPS revenue comes from North America and Eastern Europe, with developing markets like Asia gradually picking up steam, according to Joyce.

But where do MSPs fit into the conversation? Xerox promotes solutions like PagePack and eConcierge to help MSPs generate recurring revenues. However, only about 19 percent of the world’s top MSPs offer managed print services to their customers, according to our fifth-annual MSPmentor 100 survey, which runs through Dec. 23, 2011.

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“The mid-market as we define it is spending $250 billion annually, and 80 percent of those companies are buying “X” as-a-Service,” Monshaw said. IBM defines the mid-market as all global clients with less than 1,000 employees that are not part of a multi-national company. IBM learned from a recent study that it needs to improve its customer relationship management efforts within the mid-market. Indeed, mid-market clients, according to Monshaw, like to buy from local and trusted business partners. “The channel moves a lot of our hardware and software, but the channel is not what I’m talking about,” he explained. “I’m talking about MSPs.”

IBM found that the most important engagement for a mid-market company is the engagement with its MSP. “They [MSPs] are our next generation business partners,” Monshaw said. The catch: IBM currently works with a large group of reseller channel partners, so in order to cater to the mid-market, the company has to try to turn those resellers into MSPs. That’s exactly what IBM is trying to do.

“We are working with resellers that want to become MSPs and some regional system integrators are already becoming MSPs,” Monshaw said. “They need to evolve and we are helping them by teaching them how to be cloud providers and cloud builders.” For instance, the IBM Developer Relations Program connects partners with ISVs (independent software vendors) so that partners can create their own cloud experience or resell the IBM SmartCloud.

It’s not as if IBM doesn’t have MSP partners. One example is Maclean, which partnered with IBM in May, 2011 to bring cloud computing to the mid-sized market. But it makes sense for IBM to try to turn its large base of reseller partners into MSPs before going out and looking for new partners.

Not all IBM resellers are buying into the model. About one-third of IBM partners are moving to an MSP model, another one-third want to move but don’t know how, and another one-third say they will ride out their current business strategies, according to Monshaw. Those who have switched to an MSP model are already seeing a payoff. IBM does not release specific numbers, but Monshaw said some partners who first made the switch about a year ago are making about 30 percent of their profits through their MSP model, and he expects that to continue to grow.

“I believe what’s going to happen here is we’re going to see the MSP business model accelerate faster than the average market,” Monshaw predicted. “MSPs that deliver to the mid-market will experience a growth rate that will be higher than the actual consumption in the mid-market.”

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The goal of the partnership, according to GreatAmerica Senior VP of Strategic Relationships Greg VanDeWalker, is to offer both companies’ clients more MPS solutions. It’s important to understand that GreatAmerica is not in this to compete with other managed print services providers. The company has partnerships with Kyocera, Oki Printing Solutions and Xerox, among others. GreatAmerica is in it to handle the financing aspect and to help businesses lease print solutions if they cannot afford to purchase them.

MWAi claims it will be able to help its clients reduce operational costs and create greater profit margins by leveraging GreatAmerica’s customer service capabilities and financial clout with its own enterprise solutions. GreatAmerica operates in every U.S. state and some U.S. territories. We’ll keep an eye out for more GreatAmerica partnerships in the MPS, VAR and MSP sectors.

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To hear Mike Cullen, N-able’s VP of Sales, tell it, managed print services represent a huge opportunity for MSPs – if they can prepare now.

“Increased competition is coming,” he said, as the copier and printer dealers look to back into the managed services space through a managed print offering. “In the past the manufacturers have taken the approach where they either buy or build their way into managed services, and that will continue. Now there’s the copier dealer network and they are migrating toward this space.”

But why these guys, and why now? Cullen pointed to a period of dormancy after years of incredible growth in the printer and copier space, when such companies had more money than they knew what to do with.

“Copier guys with too much money are like drunken sailors – they were, at one time, buying companies left and right,” he said. But they were buying specialty companies such as those that only offered Lotus Notes, for example, rather than general IT companies. “And that strategy failed miserably. So they’re being much more cautious now,” he said, with many using a multitiered strategy that involves both acquisitions and organic learning.

But what the copier companies have that makes them a threat to MSPs is coverage, Cullen said.

“You can take [a copier company’s] direct sales force and have coverage across the board,” he said.

Which means MSPs offering or contemplating managed print services need to strike now while the opportunity is there, especially with their existing customer base.

“Keep those [copier and printer] guys out of your accounts,” he said. “Having a managed print service gives you the ability to plug that hole that exists in your customer accounts.

“We’re seeing MSPs adding managed print services as a revenue opportunity as much as a defense mechanism,” he added. “So partnering with vendors such as Oki or Xerox that have those complete fulfillment processes in place, you’re making margin but you’re also keeping these guys out of your customers.”

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In recent weeks, Chromebooks have taken four small steps forward – including remote access support. Moreover, Google is promoting Chromebook training and prep work for IT help desks. The online training and FAQ information prepares IT help desks and service desks to address most of the major known issues with Chromebooks.

Generally speaking, I don’t see a market — at least not yet — for MSPs to offer Chromebook help desk support. No doubt, some large businesses, colleges and schools have been rolling out Chromebook pilot programs. But so far, Google has yet to announce an official channel partner program for Chromebooks.

Initial Chromebook sales activity involves Amazon.com, BestBuy.com and TigerDirect.com selling the Acer and Samsung Chromebooks to end-customers. The sales can involve outright Chromebook purchases (one-time fee) or three-year Chromebook payment programs (which essentially combine hardware as a service with software as a service).

If we spot any MSPs adding Chromebook support to their IT service desks, we’ll be sure to report it.

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Xerox’s free mobile print solution is called PrintBack; it can print any document, from any mobile device, to the nearest printer, regardless of that printer’s connection type, print technology or manufacturer, Xerox claims. PrintBack also supports Microsoft Office documents and PDFs, and Xerox claims it produces high quality jobs by using the print driver on your computer and holding the default settings of that driver. Users can access PrintBack from any Mac or PC-connected printer through any Google Android or Apple iOS mobile device.

Then there’s the wireless WorkCentre  6015 Color MFP solution — a Wi-Fi enabled device. The Xerox MFP solution combines print, copy, scan and fax capabilities, and works with the PrintBack solution to offer SMBs a more efficient way to manage documents, according to Xerox. The WorkCentre 6015 MFP solution starts at $499. The Xerox PrintBack solution is available via free download on Xerox.com, the Android Market and the Apple App Store.

Admittedly, PrintBack and the WorkCentre 6015 don’t require managed print services. But both solutions are well-suited for MSPs that promote managed print services, Xerox asserts.

There’s no shortage of competition in the managed print services sector between Xerox, Nuance Communications, Toshiba, Lexmark, OKI Data and others. And as the managed print solution providers continue to develop, companies are continuing to buy. That according to CompTIA, which recently detailed the rise of managed print services in the SMB and enterprise sector.

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1. Money Matters: N-able recently received a private equity investment from Accel-KKR. It sounds like multiple millions of dollars were involved but Garbutt confirmed that the deal represents a minority investment for Accel-KKR. Looking ahead, I’m wondering how N-able plans to use the money. Garbutt has mentioned international expansion and potential acquisitions. It sounds like N-able has already made a small, strategic purchase and the technology could be announced at N-able Partner Summit.

2. Software Synergies: N-able already integrates with a range of software, hardware, managed and cloud solutions. Next up, I wonder if N-able will explore synergies with additional Accel-KKR portfolio members. As I’ve previously mentioned, key partners could potentially include Endurance International (an SMB cloud specialist), Kana Software (service experience management) and Layered Technologies (managed dedicated hosting).

Other relationships worth watching include N-able’s partnerships with Ingram Micro and CA Technologies.

3. Does Total Coverage Equal Total Dollars?: At the 2009 and 2010 N-able Partner Summits, Garbutt discussed freemium software strategies to help MSPs achieve 100 percent market penetration/SMB coverage. N-able is quick to note that demand for its software has skyrocketed. But are those SMB deployments helping MSPs to lift their own recurring revenues and profit margins? How much?

4. Six Names to Know: It’s always interesting to watch the working dynamics between Garbutt, President and COO JP Jauvin, VP of Sales Mike Cullen and VP of Marketing and Business Development Derik Belair. Each executive is strikingly different but together they blend as a team. In the days and weeks ahead, I hope MSPmentor gets a better feel for CFO John Blaine and VP of R&D August Wehrmann’s management styles. Overall, it sounds like those six minds most greatly influence where N-able is heading next.

5. Special Financing: N-able has a longstanding relationship with GreatAmerica Leasing, a financial services firm that works closely with MSPs and VARs. Some MSPs leverage GreatAmerica to help finance N-able’s software. Other MSPs work with GreatAmerica on hardware as a service (HaaS) deals. I’m curious to know how GreatAmerica is feeling about the current economic climate, and the potential implications for MSPs and VARs.

6. Managed Print Services?: I noticed Oki Data plans to promote a Total Managed Print solution during N-able Partner Summit. Generally speaking, only about 20 percent of MSPmentor 100 companies currently offer managed print services. We’re poking around to see if that figure is set to climb.

7. Unique Selling Proposition: In the crowded market for remote monitoring and management (RMM) software, what ultimately makes N-able unique? Relationships certainly matter. For instance, I know many MSPs value their deep relationships with the N-able executive team. But ultimately MSPmentor wants to get a clearer sense of what will make N-able unique in a crowded market that, I believe, is set to consolidate around fewer players in 2012.

We look forward to updates at N-able Partner Summit.

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At Toshiba, the PaperCut MF solution is a managed print service of sorts. It allows customers to track, monitor and control all of the printing, copying and scanning that takes place within their business. In theory, businesses will be able to identify areas where they can reduce waste and operating expenses.

PaperCut MF offers web-based administration, on-board design, “Find Me” printing, mobile printing, digital signatures, tracking and monitoring, and several desktop widgets. PaperCut MF is available in three different versions, as described below by Toshiba:

• Commercial: This is the primary solution for corporate users which includes support for Toshiba’s  e-STUDIO MFPs as well as other select printers.
• Educational: This version has a special configuration designed for the education markets.
• Professional: This version is similar to the commercial version with the exception that it features an advanced client billing pop-up to facilitate simple and accurate out-of-pocket cost tracking for client/department charge back.

In addition to the PaperCut MF announcement, Toshiba partnered with Lexmark in August 2011 to leverage the Lexmark Fleet Manager 2.0. The Toshiba-PaperCut initiative surfaces just as Hewlett-Packard is launching a managed print services effort that involves channel partners and the SMB market.

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