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  (Las Vegas) — For many channel companies, both VARs and vendors, the service delivery model has rapidly evolved over the past couple of years, and should continue at an even faster rate in the foreseeable future. Managed services, especially hosted versions of those offerings, and outsourcing is causing solutions providers to rethink their business and how they interact with each of their customers. In network technologies in particular, this is quickly becoming apparent as customers learn more about the benefits, such as reducing the expense of maintaining their own IT staff while preserving a high level of support. 

The channel trend towards managed services was highly evident at this year's CompTIA (the Computing Technology Industry Association) Breakaway conference. Celebrating 25 years of IT training and education, CompTIA continues to evolve and expand its annual channel event (more than 1,200 attendees this year) with additional technology and business education. The organization has thrived, despite the tumultuous environment of the IT industry. Since CompTIA's inception, the channel has witnessed the rise and fall of the COMDEX show, many IT distributors (Merisel is one example), and an extensive list of hardware and software vendors (e.g. Commodore, Compaq). The organization continues to transition its resources to the latest technologies, with managed services being emphasized in the last couple of years. 

Managed Services Increases Support Discussions
While the event featured a wide range of IT channel topics, managed services continued to dominate many of the sessions, from SaaS (software and as service) and hosted offerings to VAR sales and marketing strategies. CompTIA has taken steps to develop additional education and training resources, including research and a dedicated services initiative portal (comptia.org/sections/services/managed_services.aspx), for VARs who are hoping to transition to the new model. There is a definite need for additional managed services education resources for solutions providers, so expect to see organizations such as CompTIA and MSP Partners (msppartners.com) adding that support.

Since its inception, CompTIA has been active in education and certification for technology providers, though known primarily for its technical role. That function of the organization has been supplemented with additional resources surrounding the business growth of channel partners. "The educational needs of solutions providers are transitioning. As many of them grow and become larger organizations, we've seen a greater demand for business acumen topics, so we have added education programs, research, and tools to meet those needs," said John Venator, president and CEO of CompTIA. Some of those resources, such as a solutions provider roadmap (offers assistance such as business plan development) and business education courseware are available to members through CompTIA University (comptia.org/trainingandeducation/comptia_university.aspx).

Simplify Services, Increase Customer Support 
For VARs that don't have the resources to develop their own NOC (network operations center), hosted managed services are being offered in several flavors, from Ingram Micro's Seismic offering to remote desktop management from Everdream. Several vendors at Breakaway touted hosted solutions and the advantages for VARs, such as allowing them to build a managed services practice without the large investment in servers, network upgrades, and software that traditional offerings require.  

Web services are another opportunity for VARs looking for cost-effective solutions for smaller customers. For example, e-Folder allows resellers to offer an IP-based data backup service (with AES-256 encryption) to their customers with several pricing models. These types of Web services provide resellers with a recurring revenue stream and are typically easy to set up and support. Providing services for smaller customers today doesn't require the same on-site support and the increased technical labor that entails. With managed and Web services, VARs can actually increase the level of support and reduce expenses regardless of their clients' size and location.   

Do VARs Understand The Value They Provide?
Managed services is growing faster than expected, possibly for the same reason that solutions providers own the SMB segment — customer service. Businesses are attracted to solutions that reduce downtime or provide additional benefits that help their companies meet their business goals. Defining the value you should provide to your customers is a difficult task, since each client's needs and preferences may vary significantly. One way to keep on top of those needs is to survey or get feedback from your customers on the products and services you provide to them. Develop a program to receive timely information from current and past clients and look for patterns or significant issues and address those concerns. 

In one panel discussion at Breakaway, Brian Deeley, owner of solution provider Graymar Business Solutions, suggested that the term 'VAR' is as dysfunctional as the term 'managed services.' Neither properly represents a need for customers that resellers can provide. "A better acronym for solutions providers would be TAPs [technology advisors/partners], since it better symbolizes the role we play in the channel." The point Deeley was making was not that we need another acronym in the channel vernacular, but that vendors and end users must clearly understand the place a VAR has in delivering solutions and services to customers. If vendors help develop and clients tap into the advisor potential of solutions providers, this will exponentially increase the advances in many markets. But the true responsibility lies with VARs to develop their own solutions and market them properly to the right customers. Utilizing resources from organizations like CompTIA will help solutions providers grow and reach their own milestones in longevity.

CompTIA CEO John Venator discussed training initiatives and presented several college scholarships at this year's conference.	Tech Data Senior VP of U.S. Marketing Bob O'Malley presented several awards at the CompTIA Breakaway dinner and gala.
Microsoft COO Kevin Turner provided a look at the software vendor's future, from technology innovation to increased services offerings for the channel.	(L to R) Tanya O'Connor of Gartner; Paul Rodriguez, comedian and headline entertainer at Breakaway; and Lou Becker of Gartner enjoying the evening after the awards show.

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