MSPmentor

I’ve spent a bunch of time the past several days thinking about ways to reconnect with people who’ve been important to me in various periods of my life. I’ve done a so-so job staying in touch, but the older I get the more important staying in contact feels.

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I got an email yesterday from a managed service provider located in the Southeastern United States. In it, he wrote:

“Joe we have had three clients pare back their contracts just today due to layoffs. We charge by the machine. What are u hearing?”

Unfortunately, I’m hearing similar stories from across the United States. But I also heard a key story from a managed service provider in Michigan. Here’s how he’s staying close to customers and driving new revenue opportunities in the bad economy.

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John Roberts is sitting in the middle of the perfect storm. As CEO of SugarCRM, he leads one of the fastest-growing open source application providers. And roughly 30 percent of SugarCRM’s customer wins now involve software as a service (SaaS) or an on-demand approach — meaning the company competes with traditional CRM (Siebel) and hosted models like Salesforce.com.

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RightNow, a CRM (customer relationship management) developer, gave skeptics reasons to believe companies can successfully leap from traditional software to newer software as a service (SaaS) business models.

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RightNow, a CRM provider that has been shifting to a software as a service (SaaS) business model, is scheduled to release financial results after US markets close today.

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Managed services aren’t just for small business. In fact, the managed service providers see ample opportunity in mid-size businesses. But targeting the mid-market often means competing with well-funded, profitable consulting firms that specialize in host ERP (enterprise resource planning) applications.

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