Guest Column
MSPs Must Be Ready To Sell SaaS And Virtualization
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•Guest Column: MSPs Must Be Ready To Sell SaaS And Virtualization
By Gennifer Biggs, Business Solutions magazine
After attending a handful of managed services conferences over the last few months, I am excited about the resiliency that managed services providers (MSPs) have shown during the current economy. At these events, MSP attendees have cited a 2% to 3% drop in revenue, but the enthusiasm they have about their business model remains high. Part of the reason behind their optimism is that, as customers struggle to cut costs and shrink internal IT staff, they have more clearly seen the value proposition of managed services, which has been a boon to MSP sales. Fueling those sales are technology offerings such as SaaS and virtualization, just to mention two.
SaaS A Hot Topic Among MSPs
"We see SaaS as having reached the tipping point for adoption and, for some applications and certain businesses, it is becoming the norm rather than the exception," says Mike Byrne, group manager of channel services at managed services vendor HoundDog Technology. "The current economic downturn has played a big part in driving adoption because organizations can now get access to functionally rich applications at a cost that better fits their operational profile and usage." Most of the vendors with whom I talked agree. Jim Hamilton, executive director of MSP Partners, adds that 2008/2009 research by that organization indicates 33% of MSPs currently support SaaS offerings and that almost 40% are planning to support SaaS offerings. "Customer demand is the primary driver for SaaS service delivery, but other important factors include a lower perception of risk and simplified support processes for the MSP," says Hamilton. He adds that even more growth is expected with SaaS as it expands into nearly all technology categories. "Furthermore, the adoption of SaaS increases the importance of web connectivity and network infrastructure. Both those areas will continue to see growth as a result of SaaS adoption."
•Guest Column: MSPs Must Be Ready To Sell SaaS And Virtualization
Used with permission from Business Solutions magazine.
