MSPmentor » Master MSPs

Cloud Aggregators vs. Master MSPs: What’s the Difference?

Joe Panettieri — Fri, 22 Apr 2011 15:23:19 +0000

Master MSPs — which offer VARs and peer MSPs a range of services — are evolving in multiple directions. Some Master MSPs continue to successfully onboard VARs and assist the MSP transformation process. Others have exited the market because it’s challenging to recruit and retain fledgling MSPs as paying customers. And generally speaking, I think some Master MSPs are shifting their focus to a cloud aggregator role. So what’s the difference between a cloud aggregator and a master MSP? Here are some educated guesses.

First, let’s rewind a bit and explore the history of the Master MSP market. Back in 2008, I expected dozens — yes, dozens — of Master MSPs to emerge, supporting thousands of VARs and MSPs across North America. Companies like Do IT Smarter, MSP Services Network (MSPSN) and Virtual Administrator led the early Master MSP charge. Distributors such as Ingram Micro also weighed in with the Seismic partner program.

Fast forward to the present and it’s clear some of my assumptions about the Master MSP market were wrong. Some Master MSPs have thrived, but others struggled because recruiting, training and retaining small VARs and aspiring MSPs was either too costly or too complicated to master (pun intended).

Who’s In the Game?

So what’s the state of the current market? Master MSPs like Do IT Smarter and Virtual Administrator continue to march forward; players like MSPSN have exited the market; veterans like Cloud Services Depot have become MSP software distributors; and giants like Ingram Micro and Arrow ECS (Enterprise Computing Solutions) are talking more about cloud aggregator services. So what’s the difference between a master MSP and a cloud aggregator?

Virtual Administrator’s Rich Forsen says true Master MSPs are like health care clinics while cloud aggregators are like medicine cabinets: The clinic provides hands-on assistance and long-term nurturing to MSPs, while medicine cabinets offer a range of products that may or may not help your specific needs.

Distributors may object in some ways to that comparison, but I understand Forsen’s point. Over the past year or two, Virtual Administrator has spent less time emphasizing third-party MSP tools (i.e., aggregation), and more time promoting Virtual Administrator’s own education, support and content services. Somewhat similarly, Do IT Smarter emphasizes its single point of contact and support services — rather than leading with third-party MSP software tools.

Cloud Aggregators

Meanwhile, distributors such as Ingram and Arrow ECS are talking up cloud aggregator services. As a whole, I believe distributors remain committed to MSPs, but the managed services strategics increasingly fit under cloud umbrellas.

At the Parallels Summit earlier this year, Ingram Micro VP of Managed Services and Cloud Computing Renee Bergeron said Ingram was the leading cloud aggregator. Then earlier this week, Arrow Fusion VP Lee Fawcett described Arrow’s own cloud aggregator strategy to me. The efforts so far…

Ingram in November 2010 launched the Ingram Micro Cloud, which helps VARs to find managed and cloud services from big names (Amazon.com, IBM, Rackspace, Salesforce.com) and upstarts (Intermedia, NetEnrich, etc.).
Arrow promotes managed IT services within the broader Arrow Fusion Cloud Services strategy. NetEnrich, here again, plays a role. There’s also an emerging cloud relationship between Arrow and Terremark, which will host SaaS applications for VARs and MSPs. And I’d also watch to see if an apparent Arrow-Verio relationship blossoms.

On the one hand, I believe Ingram, Arrow and other distributors are committed to MSP education. In fact, Synnex just launched a major managed services push earlier this month. But smaller Master MSPs also have a unique take on the market since they live every day as SMBs themselves — a potentially comforting fact for VARs and MSPs seeking help.

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Arrow Fusion: Distributor’s Managed Services Strategy Comes Into Focus

Joe Panettieri — Thu, 21 Apr 2011 13:33:27 +0000

Distributors continue to ramp up their managed services strategies. The latest example: Arrow ECS (Enterprise Computing Solutions) is building out an Arrow Fusion Services strategy that includes professional services, consulting, cloud services, education and support. Within the cloud initiative, Arrow has introduced selected managed services for VARs and MSPs. Lee Fawsett, VP of Fusion Services, shared some updates with me yesterday.

I met Fawsett during an Arrow ECS open house near Atlanta, Ga., where the distributor showcased a new lab that VARs and MSPs can leverage for testing and proof-of-concept work. Most of my conversation with Fawsett focused on cloud computing, with a touch of managed services mixed in. So far, the Arrow Fusion Cloud Services include:

Remote monitoring and IT as a service, including managed services. I suspect NetEnrich is assisting in this area, since Arrow and NetEnrich have a business relationship.
Security as a Service and Software as a Service: Fawcett described how Arrow plans to line up vertical market SaaS applications for VARs. It sounds like the SaaS applications will be hosted in Terremark data centers.
Infrastructure as a Service: Including public cloud services and managed server options.
Business Continuity and Disaster Recovery: Including offsite backup and mirror imaging to safeguard businesses during a disaster.

It’s safe to expect Arrow to add more Fusion Cloud Services in the next few months. Among the potential moves I’m watching: During the Arrow open house yesterday, some Arrow presenters described a relationship with Verio — the web hosting specialist.

Competition Looms

Still, managed services seems to be a small piece of the broader Fusion Cloud Services strategy. In stark contrast:

The Ingram Micro Seismic team has helped to transform more than 1,000 VARs into MSPs… though Ingram has also spent more time emphasizing cloud computing in recent months — pointing partners to the Ingram Micro Cloud site, which launched around November 2010.
Synnex recently expanded its managed services push, hosting Level Platforms‘ remote monitoring and management (RMM) software for VARs and MSPs. Synnex also entered managed services relationships with Axcient and Intronis (cloud storage), Reflexion (anti-spam and email security) and Symantec.

Generally speaking, I think transforming VARs into MSPs has been a challenging task for most distributors. In addition to identifying best-of-breed software tools for aspiring MSPs, distributors have also worked to educate VARs on recurring revenue business models and MSP sales compensation plans. Cloud computing may accelerate the transition, however, since end-customers are starting to demand cloud services — forcing VARs and MSPs to either develop recurring revenue models or bow to competition.

Synnex Managed Services: Chasing Ingram Micro or Truly Innovating?

Joe Panettieri — Thu, 14 Apr 2011 17:53:08 +0000

A new round of competition may be emerging in the managed services market. It goes something like this: Ingram Micro spent several years building its Seismic managed services business for VARs and MSPs. Now, Synnex — an Ingram rival — has launched its latest managed services initiative. So is Synnex chasing Ingram — or is Synnex truly innovating on its own? I’ve organized some thoughts based on this week’s Ingram Micro VTN (Chicago) and Synnex Varnex (Boston) channel gatherings.

When it comes to distributors navigating managed services, I think Ingram Micro gained first-mover advantage — building a pretty large portfolio of MSP software relationships. But first-mover advantage also comes with some risks… Navigating an emerging market is a bit like grabbing land in the wild west — you’re bound to take a few arrows in the back.

Meanwhile, Synnex in August 2008 launched an initial managed services strategy but the effort didn’t seem to set the world on fire. Synnex has quietly spent the past year revamping and enhancing its managed services strategy. Synnex CEO Kevin Murai and Senior VP Robert Stegner are Ingram veterans who understand cloud computing and managed services. And Synnex has also built MSP- and cloud-centric teams that include:

VP of Cloud Computing Programs Rob Moyer, formerly of MotherApp, Microsoft and Wyse
VP of Design and Support Services Kirk Nesbit, formerly of ComputerLand
Senior Director Amy Luby, formerly CEO of MSP Services Network
Western Regional Services Manager Brian Freistat, formerly of ARRC Technology

Marriages and Divorces

The Ingram Micro vs. Synnex story has some interesting plot twists. On the remote monitoring and management (RMM) front, Ingram spent several years working with Level Platforms while Synnex bet on IT Control Solutions.

Publicly, Ingram and Level Platforms always spoke professionally about one another. But privately, Ingram and Level Platforms often didn’t see eye-to-eye, and their RMM hosting relationship dissolved earlier this year.

Ironically, Synnex and IT Control Solutions also had a divorce of sorts — right around the time that Level Platforms put the final touches on a new RMM platform that earned positive feedback from early adopters. Synnex ultimately bet on the new Level Platforms offering, deploying and hosting it within a Synnex data center.

Lining Up Technology Partners

Here again, Ingram had first-mover advantage in a lot of ways — building MSP-centric relationships with such companies as Autotask, CA Technologies, Intermedia and NetEnrich. Some of the Ingram relationships are top down — involving big technology companies (CA, IBM) that are pushing down into the MSP market.

In stark contrast, I think Synnex is using a bottom-up approach — working mostly with small but purely MSP-centric software companies like Axcient, Intronis and Reflexion. The net result: The Synnex software partners understand MSP market opportunities from day one.

Who’s Following, Who’s Innovating?

Now, back to this blog’s headline: Is Synnex chasing Ingram Micro or truly innovating?

Look behind the curtains at both companies and you’ll find innovations.

At Ingram Micro, the distributor is using custom-built business intelligence systems to help MSPs more effectively serve customers. And the recently launched Ingram Micro Cloud portal is more than a showpiece for partner logos. Ingram VP of Managed Services and Cloud Computing Renee Bergeron told me earlier this week that Ingram’s SaaS relationships will truly generate revenues for Ingram. As she put it, the cloud and managed services efforts aren’t charity initiatives.
At Synnex, the distributor has added some extensions to the Level Platforms offering to help MSPs in such areas as product warranties. Also, Synnex has launched a mobile App development team. In theory, MSPs and VARs can leverage the Synnex team for custom Apps — iPhone, WebOS, BlackBerry, Windows Phone 7, Android — that tie back to managed services and the cloud.

So there’s innovation in both camps.

Growing the Market

Also of note: Ingram and Synnex aren’t really talking about each other on the cloud computing and managed services fronts. Sure, they compete in some ways. But ultimately, I think each distributor is striving to assist their existing VAR and reseller bases on the road toward managed services and the cloud.

Master MSPs: New Missions, Evolving Ambitions?

Joe Panettieri — Mon, 28 Feb 2011 16:39:44 +0000

Master MSPs — which offer education and multiple hosted services to VARs and aspiring managed services providers — seem to be evolving in multiple directions. Some are becoming cloud aggregators. Others are expanding their SMB channel training services. But one thing is clear: No two Master MSPs seem to have the same business plan these days. Here’s why.

Rewind to early 2008. At the time, MSPmentor was somewhat guilty of hyping master MSPs. We figured dozens established MSPs would launch Master MSP business practices — training and empowering VARs and resellers to emerge as next-generation MSPs. Fast forward to the present and only a few Master MSPs have built sustainable businesses. Fact is, it’s very expensive and time consuming to recruit, train and convert VARs into MSPs. And in some cases, Master MSPs have had to compete with SaaS services from MSP software vendors.

Overall, the Master MSP market seems to be segmenting. A few areas worth noting:

Established Master MSPs: Companies like Do IT Smarter and Virtual Administrator come to mind. They have have focused heavily on training, educating and supporting emerging MSPs. The companies offer a mix of third-party remote monitoring, management and SaaS applications to those aspiring MSPs. Do IT Smarter was acquired in 2010 but continues to operate under its own brand. Virtual Administrator, meanwhile, recently announced a relationship with MessageWire and is working on multiple new business relationships (stay tuned).

In this space, we’re also watching MSP Services Network and Cloud Services Depot — which also promote NOC, help desk and other services to MSPs. Another crowd worth watching: Cisco solutions providers that potentially offer their NOC services to peer Cisco channel partners.

Distributors: Some critics say distributors aren’t Master MSPs. But I think business units like Ingram Micro Seismic fit the Master MSP definition. Still, the distributor MSP model is evolving. Ingram Micro VP of Managed Services and Cloud Services Renee Bergeron positions Ingram as the leading cloud aggregator for the channel. Meanwhile, Synnex apparently is working on a range of cloud and managed services efforts with companies like Level Platforms, Intronis and Reflexion. And I believe Tech Data is developing a cloud and managed services strategy that may involve a growing relationship with Parallels.

Software Vendors: In some ways, software vendors can be considered Master MSPs. Zenith Infotech, for one, offers remote monitoring software, NOC (network operation center) services and now managed telepresence services (through sister company Vu Telepresence). And in some ways, I guess Kaseya could be considered an emerging master MSP, since the company is building out SaaS services that include remote monitoring, backup, security and perhaps even PSA capabilities for MSPs.

Like I said: It’s getting more difficult to categorize master MSPs since business plans seem to be evolving rapidly. I’ve skipped dozens of potential Master MSP examples in this blog entry. And I wonder: As VARs and MSPs seek more training and cloud services options, which of the Master MSPs will evolve most effectively to meet those needs?

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Level Platforms Cloud Edition: Hello NaviSite, Goodbye Ingram

Joe Panettieri — Wed, 23 Feb 2011 22:39:15 +0000

Level Platforms has launched Managed Workplace Cloud Edition, a hosted remote monitoring and management platform for MSPs. Take a closer look and you’ll notice some evolving partnership strategies in the managed services ecosystem. Indeed, NaviSite is hosting Managed Workplace Cloud Edition for Level Platforms. Plus, a longstanding relationship between Level Platforms and Ingram Micro Services and Ingram Micro Seismic is evolving…

First, the straight news: Level Platforms has long-offered SaaS and on-premise versions of its managed services software. Generally speaking, the latest Managed Workplace 2011 on-premise release has been well-received by MSPs — hundreds of which have attended a Level Platforms roadshow in recent weeks. Now, Level Platforms is looking to build on that momentum with its Managed Workplace Cloud Edition release, hosted by NaviSite.

“NaviSite is excited to expand our relationship with Level Platforms,” said Denis Martin, Executive Vice President and CTO at NaviSite, in a prepared statement. “We have been providing their hosted version to partners and use Managed Workplace internally to manage our extensive internal IT environment. This new Managed Workplace Cloud Edition solution offers an innovative set of new cloud management features.”

Now for a few potential twists.

Twist one: Ingram Micro Services is now reselling Managed Workplace Cloud Edition, rather than hosting it directly, Ingram Micro and Level Platforms confirm. According to a spokeswoman for Ingram Micro:

“Partners who have previously purchased the hosting from Ingram Micro are being supported by LPI [Level Platforms]. There are no changes to the services and customer experience, plus they can still escalate to Ingram Micro as they did before if they experience any delivery issue. The main reason for this change is to ensure that our mutual customers (Ingram Micro and LPI) get the latest version of the SW at any point in time.”

Twist two: Time Warner Cable is set to acquire NaviSite for an SMB cloud computing push. Some of the Time Warner effort will involve direct sales into SMBs. But I also believe NaviSite remains committed to channel partners. And the NaviSite-Level Platforms relationship sounds promising, considering NaviSite’s deep expertise managing applications for partners and end-customers.

Twist three: What ever happened to the potential managed services relationship between Level Platforms and Synnex — an Ingram Micro rival? We’re still poking around for updates. But it sounds like Synnex has hosted training sessions for MSPs in recent weeks. And I believe the training sessions involved education about Level Platforms’ software.

Meanwhile, Level Platforms also sees an opportunity for Managed Workplace Cloud Edition to catch on with Master MSPs. As frequent MSPmentor readers know, Master MSPs host software and provide training to aspiring MSPs and VARs.

Notes Level Platforms CEO Peter Sandiford: “We also provide our Hosted Cloud Edition for those that want to operate as Master MSPs using the platform to create distinct offerings with services, features and pricing appropriate for their target markets.” Sandiford says the hosted cloud edition is highly customizable for those Master MSPs.

Ingram Micro, Synnex Prep Managed Services, Cloud Updates

Joe Panettieri — Fri, 18 Feb 2011 02:04:25 +0000

Ingram Micro and Synnex, two large rival distributors, each are preparing more moves in the managed services and cloud computing markets. Some details may emerge the week of April 10 — when Synnex hosts Varnex in Boston and Ingram Micro hosts VTN Spring in Chicago. In the meantime, Renee Bergeron, VP of managed services and cloud computing at Ingram Micro, may provide some updates at the Parallels Summit in Orlando, Fla., next week.

While Bergeron continues to speak at traditional channel partner conferences, she’s also busy attending cloud-centric and MSP-centric channel events. MSPmentor spotted her at the Rackspace Partner Leadership Summit in October 2010 and at the ConnectWise IT Nation event in November 2010.

At the Parallels Summit (Feb. 22-24, Orlando), Bergeron may address as many as 1,000 hosting providers, VARs, MSPs and cloud services providers (CSPs). One potentially big theme for the Parallels event: Hosted PBX services for VARs and MSPs.

For her part, it’s a safe bet Bergeron to update Parallels Summit attendees on the Ingram Micro Cloud, a portal and educational center for VARs and MSPs that want to resell third-party SaaS applications. As of January 2011, more than 1,500 VARs and MSPs have registered to use the Ingram Micro Cloud portal. Since Ingram Micro Cloud is a website, anyone worldwide can access the destination. But it sounds like Ingram is weighing some long-term expansion plans that are specific to Europe… I’m curious to note if Bergeron will also discuss Ingram Micro Seismic, the distributor’s MSP-centric effort.

Silent Success?

Meanwhile, it sounds like Synnex is preparing multiple briefings and updates on its cloud and managed services strategies. Synnex has yet to officially announce MSP-centric and recurring revenue channel partnerships with Level Platforms, Intronis and Reflexion. But it sounds like the relationships have been in place since November or December 2011. Sources say Synnex educated MSPs about the relationships recently in San Francisco. Another Synnex managed services and cloud training event apparently is planned for North or South Carolina within the next few weeks.

We’ll also keep an eye on Synnex Varnex, scheduled for April 10-12 in Boston. Bob Stegner, senior VP of marketing, North America, and executives involved in the Synnex managed services and cloud strategies are expected to be on hand.

Distributor Questions

This is a tricky time for distributors. On the upside, I understand how distributors can generate profits by hosting managed services platforms for VARs and MSPs. But on the downside, I’m not sure how distributors can hope to generate big profits from third-party public cloud and SaaS platforms.

I’ll go searching for answers at the Parallels Summit, Ingram Micro VTN and Synnex Varnex gatherings.

Tenzing Managed IT Services Launches Partner Program

John Moore — Mon, 14 Feb 2011 15:10:26 +0000

Tenzing Managed IT Services has launched its first channel program, formalizing relations with partners and putting the company on the master MSP path. The company’s Tenzing Partner Program lets integrators, VARs, and other partners offer its managed hosting services. Tenzing, based in Canada, operates data centers in Toronto, Vancouver, and Kelowna, B.C. The centers support SaaS and e-commerce applications.

Raj Atwal, vice president of engineering and partner development for Tenzing, said the company has historically worked with partners, but had no formal framework for doing so. He said Tenzing aims to derive 20 percent of its revenue through the partner channel this fiscal year.

The company seeks to do business with a range of partners including ATG e-commerce systems integrators, SharePoint specialists, and Web application development companies. Atwal said the channel program doesn’t focus on any particular vertical markets, but he noted an increase in partner opportunities in segments such as healthcare.

The Tenzing program has two tiers.

Referral partners, the company noted, refer ad-hoc projects or leads to Tenzing.
Premier partners, meanwhile, build go-to-market strategies with Tenzing, based on shared key performance indicators. Atwal said the idea is set specific goals with partners, such as conducting to a certain number of demand generation campaigns or committing to a particular revenue target.

Toronto-based imason, an integrator focusing mainly on SharePoint, taps Tenzing for its customers’ SharePoint hosting needs. Jeff Dunmall, president of imason, said those needs have been growing of late for a couple of reasons.

First, SharePoint 2010 lets customers pursue more externally facing scenarios than previous versions, in which capabilities for external workloads weren’t fully fleshed out, Dunmall explained. He noted that organizations that have invested in SharePoint may look to extend that outlay when deploying an externally facing Web site. This external push has sparked interest in hosting services.

Second, cloud computing has caused customers to think more about hosting alternatives, Dunmall added.

Atwal acknowledges that Tenzing, as it continues to cultivate a partner channel, is becoming, in essence, a master MSP. Future plans for the channel program include creating a partner marketplace in which partners can team with each other to create new MSP offerings, he said.

Tenzing’s partner program may well boost the company’s exposure among partners and networks of partners. As for the latter, the aggregation of services seems a natural consequence of cloud computing. Tenzing, itself, has direct experience in that regard, through its integration of Alert Logic’s intrusion detection service.

Synnex Quietly Launches Big Managed Services Efforts

Joe Panettieri — Tue, 25 Jan 2011 17:24:04 +0000

Multiple sources confirm that Synnex, the massive distributor, has launched a multi-vendor managed services effort that includes Axcient, Intronis, Level Platforms and Reflexion Networks — though additional software partners could be coming. Here’s the update.

Synnex in December 2010 was expected to announce the multi-vendor managed services push. But an official announcement was pushed back amid the holidays. Sources say a potential press announcement is still pending, though Synnex’s revamped managed services push is officially under way.

The overhaul began to take shape around October or November 2010, as Synnex and former MSP software partner IT Control Solutions parted ways. By mid-December 2010, it was clear Synnex was mulling a million-node freemium strategy for VARs and MSPs seeking recurring revenues. Initial partners on the effort apparently included Level Platforms (remote monitoring and management), Intronis (online backup) and Reflexion (email security and anti-spam). But more recently, multiple sources say Synnex has added Axcient — another cloud storage specialist — to the mix.

Axcient is relatively new to the MSP partner channel, but early anecdotes appear promising. In a recent interview, CEO Justin Moore said Axcient’s recurring revenues in December 2010 were 800 percent higher than December 2009. Moore declined to discuss speculation about a Synnex relationship. However, MSPmentor found this Axcient-related data sheet on the Synnex web site.

So what exactly is Synnex up to? In some ways, it sounds like Synnex hopes to compete with Ingram Micro Seismic and Ingram Micro Cloud, a pair of efforts that have helped more than 1,000 VARs and MSPs to generate recurring revenues. In a way, Synnex appears to be pursuing the Master MSP market — where Ingram and companies like Do IT Smarter, MSP Services Network and Virtual Administrator host services for VARs and peer MSPs.

Publicly, Synnex remains mum about its growing list of MSP- and cloud-centric software partners. But privately, multiple sources say Synnex is in the market promoting the MSP and cloud efforts to channel partners. We’re still pushing for official details from the distributor.

Do IT Smarter: Behind a Managed Services M&A

Nicholas Mukhar — Fri, 07 Jan 2011 18:44:44 +0000

It’s been roughly three months since ClearPointe acquired Do IT Smarter, a well-known Master MSP. We decided to check back in with Do IT Smarter’s Lane Smith (pictured) to get some perspective on (A) how he built Do IT Smarter and (B) key lessons learned from the M&A process. Here’s the update.

In terms of the M&A process for managed services providers, Smith confirms “obviously recurring revenue is king, this is what brings the multiples on the valuation.”

But to really focus on growth and a potential M&A, Do IT Smarter brought in a virtual CFO to run the finance side of our business. That virtual CIO completely re-organized Do IT Smarter’s financial books, helped with cash flow and really helped the company focus on profitability.

“We did this about two years ago and it was the best thing we ever did for our company,” says Smith. “When it came time to show potential acquirers our books not only did we know they were accurate but they showed a very strong company from not only a “managed services” side but also from a management perspective. They were actually impressed with how we ran our finances.”

M&A Guidance

When Do IT Smarter began exploring potential M&A opportunities, Smith reached out to Weaver & Associates Ltd., an M&A firm, for guidance. Weaver & Associates was launched by Charles Weaver, president of the MSPAlliance, an association serving MSPs. Smith has been an active MSPAlliance member over the years.Smith notes that M&A is like a marriage — one party proposes, the other says yes… but there are finances involved and you need to carefully consider the pre-nup (the actual financial arrangement). Smith says Weaver was very helpful working through all of those details and considerations.

No doubt, there seems to be a boutique industry for MSP M&A advisors. In addition to Weaver & Associates, some MSPs have mentioned Cogent Growth Partners to me as a buy-side advisor on M&A deals. Also, Martin Wolf Securities has advised dozens of service providers on M&A deals for more than a decade.

Back at Do IT Smarter, Smith says there isn’t much he’d change about his M&A experience — other than to “get the lawyers involved sooner, this definitely slowed us down a bit.”

Next Moves

Now owned by ClearPointe, Do IT Smarter retains its brand, remains a master MSP, and is “looking to focus our efforts on more established MSPs.”

Smith points to an MSPmentor article about five-year entrepreneurial fatigue — “those are exactly the guys that we are looking to work with. We know that we can take a stalled MSP and get them to that next step. We will be helping our partners with all aspects of their business, finance, marketing, sales, services, etc… getting into their business and figuring out what is holding them back and helping them overcome those obstacles.”

Looking Back to Get Ahead

But how did Do IT Smarter get to this point? That is, how did Smith and his team actually build Do IT Smarter?

“Our vision was to do something different,” says Smith. Do IT Smarter launched back in 1999. At the time, managed service providers (MSP’s) were not as prevalent as they are today. The MSP sector was an infant industry, and companies like Do It Smarter that offered managed services to VARs and aspiring MSPs were untested. No one knew how successful a company could actually be in such a sector.

“Back then they even had a different name for MSP’s,” said Smith, recalling the early unpredictable days of the company. “They were called ‘smart support’ at the time.”

Since its founding, Do It Smarter has expanded from a small firm offering its services to MSP companies exclusively in San Diego to a business with offices in San Diego, Wisconsin and a soon-to-come facility in Dallas, Texas. Additionally, Do It Smarter has key partnerships in Europe and Canada and business relationships with McAfee, Labtech Software and Level Platforms, among others.

Do It Smarter faced several inflection points that led to new growth. One came in 2000 when the company released a comprehensive support package that includes help desk services, on-site services and remote monitoring. In 2005, Do It Smarter began offering business and technical knowledge to value-added resellers (VARs) from coast to coast. All the success of the company has come almost entirely without direct sales. With over 100 channel partners, today’s Do It Smarter profits come exclusively through channel relationships, so the company’s main 2011 goal should come as no surprise:

“We want to increase our channel partnerships,” said Smith.

While other similar service providers are striving to expand overseas, Do It Smarter is focusing on offering its service within the United States. “We’re not actively looking for overseas opportunities,” said Smith, with an added disclaimer. “Unless a golden opportunity comes along.

Additional reporting by Joe Panettieri. Sign up for MSPmentor’s Weekly Enewsletter, Webcasts and Resource Center. Follow us via RSS, Facebook, Identi.ca and Twitter. Check out more MSP voices at www.MSPtweet.com. Read our editorial disclosure here.

DirectPointe Builds PaaS Monitoring Platform for Peer MSPs

John Moore — Tue, 04 Jan 2011 14:24:32 +0000

DirectPointe, an MSP based in Lindon, Utah, has launched a platform-as-a-service monitoring solution for its customers and will eventually let other MSPs tap the tool.

The company’s PaaS technology is now in use with more than 170 customers. The solution brings together Quest Software’s management and monitoring tools for SMBs and MSPs and Wendia’s Point of Business Service Desk Management and ticketing system. The scope of the monitoring effort includes networks, servers, PCs, and applications.

DirectPointe said the monitoring platform represents an outgrowth of its participation in the Quest Service Provider Alliance Program. Wendia, a service management software company based in Switzerland, also partners with Quest.

The PaaS approach will let customers avoid the burden of deploying and maintaining monitoring environments, according to DirectPointe.

MSPs also pursue tool innovation to boost their own efficiency and margins. CMS, for example, reported its use of layerX Technologies’ prism software has cut problem resolution time by 50 percent.

Dan Atkinson, vice president of marketing at DirectPointe, said the company hasn’t been operational with the new platform long enough to generate specific data regarding gained efficiencies.

“Although we are seeing improvements, it is too early to predict what the gains will be,” he noted.

Prior to PaaS monitoring, DirectPointe used a combination of “some commercial tools for remote desktop support and tools that were developed in-house,”Atkinson said.

DirectPointe plans to let other MSPs use its monitoring platform. Atkinson said the company will begin with a beta program, which it has yet to define. The company’s PaaS move will provide another option for service providers who lack the in-house development skills, alliance partners and/or desire to focus on monitoring tools.

DirectPointe is a familiar name to many MSPmentor readers. The company landed atop MSPmentor’s first-annual MSPmentor 100 research report back in January 2008. Also, former DirectPointe CEO Michael Proper now runs ClearCenter, an open source cloud platform for VARs and MSPs.

MSPmentor » Master MSPs

Cloud Aggregators vs. Master MSPs: What’s the Difference?

Who’s In the Game?

Cloud Aggregators

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Arrow Fusion: Distributor’s Managed Services Strategy Comes Into Focus

Competition Looms

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Synnex Managed Services: Chasing Ingram Micro or Truly Innovating?

Marriages and Divorces

Lining Up Technology Partners

Who’s Following, Who’s Innovating?

Growing the Market

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Master MSPs: New Missions, Evolving Ambitions?

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Level Platforms Cloud Edition: Hello NaviSite, Goodbye Ingram

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Ingram Micro, Synnex Prep Managed Services, Cloud Updates

Silent Success?

Distributor Questions

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Tenzing Managed IT Services Launches Partner Program

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Synnex Quietly Launches Big Managed Services Efforts

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Do IT Smarter: Behind a Managed Services M&A

M&A Guidance

Next Moves

Looking Back to Get Ahead

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DirectPointe Builds PaaS Monitoring Platform for Peer MSPs

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