The Business Solutions Network

This morning I spoke with Sean Vojtasko, executive VP at BlueWave Computing, LLC, one of the largest MSPs (managed services providers) in the country. I was getting his input on a tech trend article I'm working on, and he mentioned something to me -- almost as an aside -- that I thought was so valuable that I wanted to share it with you right away. 

As the end of the year is quickly approaching, and I'm reflecting back on the nine trade shows, conferences, and events I've attended, plus the many conversations I've had with managed services providers (MSPs) and VARs, I've been thinking about the most important themes I've picked up this year, and I wanted to share one that I think will resonate with a lot of our readers. There's all kinds of research pointing to the fact that the channel is moving from the traditional break-fix business model to a subscription-based recurring revenue model. The sad reality is, however, that even those who now refer to themselves as MSPs, the majority of their customers (more than 80%, according to N-able's research), have yet to buy-in to this new business model. 

Rather than getting caught up in the holiday celebrations of Hanukkah or the upcoming celebration of Christmas this year, many people are instead turning to a more sober topic: the end of the world. What I'm talking about, of course, is the Mayan calendar, which ends on December 21, 2012, and with it an overabundance of sources are speculating this to be the end of the world. Whether the end is coming via rogue planets, asteroids, or solar storms colliding with the earth or shifts in the earth's polarity, doomsayers can't agree -- only on the date is there any consensus. This topic is generating so much buzz, that it's being covered by all major media sources and even NASA scientists created a video trying to address the claims.

Jenaly Technology Group, a managed services provider (MSP) based in Portsmouth, NH, was featured in Business Solutions magazine earlier this year in a cover feature story titled, "Why Now Is The Right Time To Sell Cloud Computing." In the article, Jenaly President MJ Shoer shared his growth strategy for 2012 and beyond, which included starting a cloud services company called TOGL. This joint venture, which comprises Jenaly and 16 other IT solution providers, opened for business on January of this year. I caught up with Shoer recently to find out how his business plans were turning out as we approach the end of 2012.

In the January issue of Business Solutions magazine, we'll feature the results of our first ever product review editorial. The test focused on seven RMM (remote monitoring and management) solutions from the following vendors: Continuum, GFI, Kaseya, LabTech, Level Platforms, N-able, and PacketTrap. While it's true there was no silver bullet winner in every category our testers at Remote Technology Management (RTM) considered, there was a clear underperformer in a key category that led RTM CEO Eric Brown to declare, "This would be a show stopper if we were considering this product for our company." Check out my three-minute video and see for yourself.

David Dadian is CEO of powersolution.com, a solutions provider/MSP, based in Ho-Ho-Kus, NJ. His practice specializes in business continuity, and he was featured in a case study in this month's issue of Business Solutions magazine. Not long after my interview with Dadian, his company's DRBC (disaster recovery and business continuity) service was put to the test following Hurricane Sandy.

Recent studies show that managed services providers as a whole are struggling to convert their customers over to a recurring revenue model. While attending a recent N-able Technologies conference, former MSP, Gary Pica, CEO and founder of TruMethods, an MSP mentoring company, addressed this pain point to an engaged audience of managed services providers. Pica shared a story from his managed services days when he presented a plan to convert a customer over to a recurring revenue model and was met with the classic objection many MSPs face: "Our IT is fine. Why should I spend more money with you?"

Earlier this week I spoke with Dan Haurey, president of a 21-employee MSP company called Exigent Technologies, which is based in Mount Arlington, NJ. Like many companies and residents in Haurey’s area, he was without power and his business (and many employees’ homes) was flooded out following the super storm that hit the East Coast on Monday evening on October 29.