April 30, 2007
The ABCs of MSPs
Continuing the raging popularity of the TLA, Ipswitch attended CMP's MSP (Managed Service Provider) seminar in Phoenix recently, and then we doubled down on channel education at Baptie's Channel Focus North America. What we learned was that it's fun and easy for VARs to make money by offering managed services. How easy? Check out this diagram from Cisco's whitepaper, Managed Services - Proof of Profitability: Business Case for Managed Services

But seriously, folks -- is this MSP thing the wave of the future or a flash in the pan?
Better pundits than I have weighed in on the pervasiveness of the MSP trend, but I think it's safe to say that it's going to touch a lot of resellers, and maybe change the world for a few. Will this be a change for the better or that other kind of change? Hard to tell, but in one interesting discussion at Baptie, somebody suggested that the move from selling hardware and software to selling services (or leasing said hardware and software while charging to manage it) would hit resellers hard in their marginalia.
Right or wrong, the state of the art moves along. Did all those buggy whip manufacturers deserve what happened to their business? Maybe not, but the smart ones either found new markets for their whips or whole new ways to do business. Resellers who live by moving boxes, whose sole value add is availability, are not going to do well in a services environment. Some will have to find new business models. Some will have to find ways to make services work for them., and that sounds like an opportunity for smart vendors.
Posted by David Karp
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