If you attended the recent DattoCon 2018 event, it’s dollars to donuts you heard about near-term opportunities in the small and medium business (SMB) market.
Managed service providers (MSPs), however, also got a peek of what might transpire a bit further down the road. Ian McChord, vice president of product management at Datto Inc., outlined five potential directions for MSPs attending the data protection and MSP business management software vendor’s annual partner conference:
- Proactive management
Currently, customer pain — a server failure, for example — is typically what spurs an IT services provider into action. McChord suggested analytics and improved diagnostic data will shift the MSPs’ focus from reactive to proactive management. He said diagnostic capabilities, as part of an MSP’s toolset, are still in their infancy. But those features will have plenty of data to explore once they mature: McChord said remote monitoring and management tools already collect large amounts of data, but most of it remains untapped. Eventually, MSPs will be able to measure how many customer issues they manage proactively by determining the percentage of tickets generated through automated means versus end users.
- SaaS application management
McChord pointed to increasing use of SaaS among businesses as a form of shadow IT and a potential regulatory compliance issue. He pointed to the example of a hypothetical company that loads customer data into a newly purchased SaaS-based automated marketing tool, but lacks any sort of governance plan. “There is no backup strategy, no administration strategy and nobody is looking at who has access to customer data,” he said. For an MSP, the current situation will open future opportunities to provide SaaS application management, which he believes will be bundled into what some MSPs offer today as virtual CIO, or vCIO services. SaaS application management could also fall under the umbrella of a cloud governance service.
- User-centric backup
At DattoCon 2018, McChord said he expects to see a data protection paradigm shift as the current emphasis on backing up individual technology components gives way to “backup by user, not infrastructure.” The conventional thinking on protecting data on a laptop or other endpoint device ignores the reality that an employee’s data could just as easily exist in a SaaS application. The trend, McChord suggested, will be toward backing up a user’s data — wherever it lives.
- Home office IT
The growing ranks of employees who work full-time or part-time from home may also spark MSP opportunities. McChord called working from home the “Wild West of IT,” noting that companies’ work-from-home policies have little to do with IT policy. He said home-based employees may lack a standard set of IT tools and miss the mark when it comes to adequate home office security. MSPs have a chance to create a home-office package for businesses that don’t have the time to think about what a remote employee’s desk should look like, how it should be linked into the corporate network and how to provide security around it.
- Physical access control
Many MSPs attending DattoCon 2018 are likely to be already involved in providing customers some level of digital security. But physical security may not appear on the list of services. McChord believes digital and physical security should be linked in some way, noting that access to customers’ offices may be less secure than access to their mobile devices.
What’s life like in the Apple Authorized Service Provider program?
The example of ComputerCare, a computer repair and IT consulting firm with offices in Santa Clara, Calif. and Seattle, sheds some light on that topic. ComputerCare has been an Apple Authorized Service Provider, or AASP, since 2008. The company also provides warranty service and repair for Lenovo, Toshiba and HP products.
Company president Georgia Rittenberg said the scope of ComputerCare’s Apple repair business extends to all of the company’s products, including the iPhone. In 2017, Apple chose ComputerCare for a program that lets it manage iPhone repairs and calibration at the AASP’s location. Typically, such repairs would take place in an Apple Store. But customers can walk into ComputerCare’s office for an iPhone fix, rather than making an appointment with an Apple Store’s Genius Bar.
“We’ve had an additional influx of customers because of our ability to have faster turnaround time for iPhone repairs,” Rittenberg said.
Consumer and business services
The iPhone/iOS business has generated consumer walk-in traffic, but businesses in the San Francisco Bay Area and Seattle are also looking to get iOS devices repaired.
“We have seen an increase in those corporate accounts providing mobile devices to employees as part of the onboarding process, so we have seen an increase in corporate business,” Rittenberg said.
For business clients, ComputerCare offers free pickup and delivery for Apple devices and the other hardware brands it services. That’s no small consideration in the Apple world.
“So, instead of the IT person having to take five laptops and make five different appointments at the Genius Bar, we send a driver to pick up the equipment,” she said.
In addition to supporting laptop repairs, the pickup service also makes life easier for businesses that need to repair iMac all-in-ones or Thunderbolt displays, which they would otherwise have to lug into an Apple Store.
“People really appreciate that,” Rittenberg said.
ComputerCare’s Apple repair service has carved a niche among midsize companies that haven’t hit the purchase threshold at which Apple will provide an onsite warranty solution. “There’s not a ton of options for those mid-level companies, she said, noting such business either take their equipment to an Apple Store for service or ship their gear to an Apple depot for repair.
Rittenberg estimated about half of the company’s Apple support customers fall in the mid-sized business category.
Apple Authorized Service Provider program levels
A look at the Apple Authorized Service Provider program structure places ComputerCare in a broader context. AASPs, in general, are companies that provide repair services to consumers and businesses. Companies with full AASP status are authorized to repair Apple gear for any customer. Limited Service Providers, however, are restricted with regard to the products they may service and customers they serve.
Apple Premium Service Providers, meanwhile, occupy the top tier of the AASP program. Companies must meet Apple’s requirements from both a technical and customer service standpoint to become a Premium Service Provider. To document their adherence to those requirements, program participants survey customers on subjects such as how well technicians carry out repairs, how quickly those repairs are made and the technicians’ ability to answer customer questions.
ComputerCare maintained Apple Premium Service Provider status for 2016 and 2017, narrowly missing out in 2018. Rittenberg said the company has “set some goals to work toward … to qualify for next year.”
Filling the gap
Apple, working with companies within the Apple Authorized Service Provider program, has been able to expand the availability of repair services to business and consumer customers. Rittenberg said Apple is making its customers aware that service providers are available as an alternative to a Genius Bar appointment.
“There are limited ways to get service on your device and sending [customers] every time to the Apple Store isn’t a solution,” Rittenberg said. “I really value the way Apple has partnered with their service providers. They really do view them as a partner and understand service providers are very important to the market and filling that gap.”
IBM is spurring partners to win more deals in the storage market, specifically around its software-defined storage and all-flash array products.
The company this week introduced a new set of sales performance incentive funds (SPIFs) for its storage systems and software portfolio. IBM said the incentives are the latest move in the transformation of its channel strategy and partner program. Earlier this year, IBM overhauled its incentives programs for hardware and software.
“As we all know in the competitive, demanding space around storage, as a lot of [IBM partners] and a lot of our clients continue to focus in on the cloud and the migration to the cloud, storage is a huge piece of that business model,” said John Teltsch, general manager of global business partners at IBM.
He described the new SPIFs as part of “the rolling thunder” of IBM’s “incremental incentive changes to our partner channel.”
The incentive program provides eligible partner sellers and system engineers with up to $100,000 in SPIFs that they can earn annually.
- New clients: Partner reps can earn 3% of the deal size, up to $30,000 per rep, per deal with a new client.
- All-flash arrays: Reps can earn 1% of the deal size, up to $10,000 per deal, split between reps.
- IBM storage hardware and Spectrum software: Up to $20,000 per deal based on deal size, split between reps.
- New deal registrations: For registering an opportunity of $100,000 or more, reps can receive $500, split between reps.
IBM added that the storage SPIFs are stackable, which lets partners bundle multiple incentives on each deal for greater financial payout.
According to Eric Herzog, chief marketing officer of worldwide storage channels at IBM, the global market for external storage systems and software, while about $40 billion in size, is relatively flat. However, he noted software-defined storage and all-flash arrays are growing market segments.
“Certain markets are shrinking: hard drive arrays, hybrid arrays, management software for devices,” Herzog said. “While we do offer those, our focus is on flash arrays and software-defined storage. Those are growth markets, and we’ve wrapped these incentives around those market engines.”
The SPIF program will run until the end of the calendar year and are open to all IBM business partners, regardless of their program tier levels, in North America, Western Europe and Latin America. IBM said it will roll out storage incentives in other geographies, adapted to countries’ local laws and customs, later this quarter.
MSP tools play a pivotal role in a managed service provider’s business.
A mix of off-the-shelf and home-grown tools help MSPs deliver services to their customers. Using automated tools to remotely monitor and manage clients’ IT assets is really the essence of what an MSP does. The MSP industry couldn’t exist without MSP tools.
And with the growth of the managed service customer base, the need for automation only intensifies. A recent Datto survey on MSP marketing and business issues showed more than 40% of the 2,300 MSPs polled have more than 100 clients, compared with only 27% reporting that customer volume in 2017. MSPs rely on software tools to support that number of customers capably and profitably.
But one can have too much of a good thing and that holds true for MSP tools. Virteva, an MSP based in Minneapolis, had been using four different tools to monitor its customers. That collection of monitoring products added complexity and expense and also made it difficult for Virteva to obtain a complete picture of its customers’ IT infrastructures.
Steve Griffiths, COO at Virteva, said the company decided to replace its mixture of monitoring wares with a single platform from LogicMonitor. That vendor’s monitoring technology is now part of an application stack that sits on top of ServiceNow, which Virteva adopted a few years ago to serve as the backbone of its operations.
“It was a nice consolidation play,” Griffiths said, referring to the shift from multiple MSP monitoring tools to a single source.
Consolidating MSP tools improves visibility
Griffiths said such consolidation moves streamline a company’s operations and usually reduces costs. But the greatest advantage of adopting LogicMonitor has been unified monitoring and the improved visibility that it provides.
“The big one is when you can see everything under one roof,” he said. “You get the benefit of connecting the dots across customers … and breaking down the silos of data.”
LogicMonitor’s ability to centralize monitoring paid off when a major hack emerged and Virteva needed to check for patches across its customers’ IT systems. Matt Kerfoot, infrastructure technician at Virteva, said the company created a custom DataSource for LogicMonitor that scanned clients’ systems and flagged those missing the patch. He said the scanning task took one hour using the DataSource, which is a LogicMonitor template that determines what data to collect and what values should trigger alerts.
“I really like the custom DataSources,” Kerfoot said. “We monitor so much stuff that doesn’t get monitored out of the box.”
The ability to sniff out potential problems before they affect customers is in line with Virteva’s overarching philosophy, Griffiths suggested. He said CIOs face the challenge of dealing with security threats and the day-to-day grind of addressing problems that crop up throughout the IT infrastructure. Virteva’s approach, he said, is to prevent trouble from ever happening in the first place.
“We believe that the old way of being an MSP is going the way of the dodo,” Griffiths said. “No longer can somebody … outsource, say service desk or infrastructure management, and just say, ‘You guys take it and you handle my mess for less money.’ ”
Griffiths said that way of doing business leads to labor arbitrage, which he termed a losing proposition. The alternative approach Griffiths endorses is proactive management and continuous improvement.
“That best support experience one can have is not to have one at all,” he said.
The task of applying AI, digital thread and augmented reality to here-and-now business challenges is much on the mind of Mike Sutcliff, group chief executive at Accenture Digital. Sutcliff discussed those technologies with SearchITChannel in a recent email interview. Here are some excerpts from that interview with Sutcliff, who spoke on AI and digital transformation at last month’s Mobile World Congress in Barcelona:
What are the top three real-world issues companies are trying to solve by applying AI? Where is the opportunity for Accenture in those areas?
Mike Sutcliff: We [saw] a lot of interest from clients in discussing applied [AI] with us at Mobile Word Congress. The first thing the companies we talk to want to know is: How can AI help my business deliver more compelling customer experiences? This is where we have been seeing very good results. For example, by using machine learning to process huge amounts of customer data, we’re able to provide customers and business buyers with more enriching interactions and experiences. Applying AI to data can help connect an online customer with the right insurance product in real time or enable pharmaceutical sales representatives to approach healthcare providers with the right solution for their patients.
The second thing our clients typically are interested in is using AI to enhance the employee experience, drive productivity, increase engagement and empower their people to make better decisions.
Finally, they want to learn about how AI can influence business models. This is a longer-term undertaking that requires an examination of how existing operating models can be reconstituted around the customer using automation. Continued »
For Eric Hobbs, the key to the talent acquisition process is to recruit prospective employees early and often.
Hobbs is CEO at Technology Associates, a managed service provider (MSP) in Cary, North Carolina. Finding qualified candidates to fill MSP slots is a chore in virtually any part of the country, but Technology Associates has the added challenge of hiring in the Raleigh-Durham area, home to companies such as Red Hat, SAS and IBM.
The task of finding the right candidates for managed services provider jobs can take months, even under the best of circumstances, and, potentially, years. Hobbs noted Technology Associates, at one point, took two-and-a-half years to find and hire a virtual CIO.
The way to avoid seemingly interminable candidate searches is to make the talent acquisition process an ongoing, day in and day out regimen.
“You can’t wait until you need somebody to start looking,” Hobbs said, speaking this week at MSPWorld 2018. The conference, held March 5 through 6 in New Orleans, featured a discussion on cybersecurity.
Technology Associates has turned talent acquisition into a regular activity. “We post all of our positions every month, whether we are hiring or not,” Hobbs said, noting the company uses job boards on such sites as Glassdoor, Indeed and LinkedIn to do so.
The frequent posting gives Technology Associates a jump on the talent-finding and resume-review process, enabling the company to “build a bench” of qualified job candidates, Hobbs said.
Even top performers may unexpectedly leave a firm, so it’s important to maintain a bench for all positions. Posting every job also eliminates the guessing game in which employees assess a single job posting and try to determine which employee is on the cusp of dismissal — that could lead to a rather Hobbesian workplace.
The talent acquisition process doesn’t end with full bench, of course. The entire process from resume collection to the job offer needs to be defined and documented for the sake of consistency. The roles and responsibilities for each job must be clearly described. And once the managed services provider jobs are filled, a company must have an employee assessment and feedback process in place.
Hobbs has a couple of other talent acquisition tips for MSPs. He advises companies to use an automated applicant tracking system and not try to build their own. Technology Associates uses ApplicantStack, which costs $95 per month, he said.
In addition, MSPs posting openings should make sure jobs titles are actually what applicants are searching for. For example, Technology Associates didn’t get much of a response when posting an opening for an InSight engineer. InSight is the company’s service brand, but job seekers “didn’t know what it was,” Hobbs said. “They are not looking for your verbiage.”
TeamViewer, a newcomer to the channel, is on a mission to grow its presence among partners.
The software provider only began its push into the channel about a year-and-a-half ago when it launched its inaugural TeamViewer partner program, featuring four tiers — Registered, Silver, Gold and Platinum — as well as deal registration, training and marketing support. Last week, TeamViewer updated the program with added deal registration benefits, a revised partner portal and an expanded channel team to assist partners. TeamViewer has also opened partner access to its ITbrain portfolio of IT management performance products.
“TeamViewer only started engaging with the channel about 18 months ago. … Before that, we pretty much ignored the channel. There was no program. There was no activity whatsoever,” said Konstantin Ebert, vice president of sales, EMEA, APAC and global channels at TeamViewer. Since launching the program, however, partners have contributed “a nice percentage number to our overall revenues,” he said.
Of the TeamViewer partner program enhancements, Ebert said they are nothing that hasn’t been done before, but “it’s a good solid step forward and it follows the growth that we have with the channel.”
While TeamViewer has a global presence, the company is looking to widen channel coverage. “Today we are doing business in more than 200 countries, and we do not have a full-blown channel set up in each of those countries,” he said.
North and Latin American markets are geographies in which the company is looking for growth, said Finn Faldi, president, Americas, at TeamViewer. He noted that as TeamViewer invests its Americas channel expansion, the vendor recognizes the sensitivities of each specific market. “We have to break [the Americas] into every market. The Canadian market works differently than the Colombian market, [which] works differently than the Argentinian market, [which] works differently than the Mexican market,” Faldi said.
Many customers haven’t recognized the benefits of a full-fledged remote support product, Ebert said. “If you look at the remote-support space, there is a huge amount of customers out there that do remote support somehow.” He pointed to some software companies’ built-in technologies and to “mediocre products” that a customer can obtain for free as examples. One of the biggest partner opportunities, he said, is to target customers that don’t understand what they would gain by having remote support technology like TeamViewer’s.
Ebert noted that one of the appeals of TeamViewer for partners is that its technology is easy to add to their selling motions. Additionally, Ebert sees a partner opportunity around TeamViewer’s IoT portfolio, which is “giving a lot of value for partners to use TeamViewer in solutions-building and adding a lot of services around that.”
The enterprise struggle with digital transformation initiatives isn’t limited to the organizations seeking change. It’s the channel partners’ fight as well.
Market research reports consistently depict digitalization as difficult to achieve. Recent evidence comes from a report released by Harvard Business Review Analytic Services in conjunction with DxC Technology, a Tysons, Va., IT services provider. About a third of the 376 business leaders polled for the report, “Winning through Change in the Digital Economy,” said their organizations aren’t very digital. That is, less than a quarter of those organizations’ products, operations and business models “depend on their ability to exploit digital information and technologies,” according to DxC.
In addition, nearly 80% of the respondents said their organizations face extensive or substantial change to become “more digital” over the next five years, the report noted. Continued »
Cisco has updated its hyper-converged infrastructure offering, Cisco HyperFlex, which the company said expands sales opportunities for channel partners.
The networking vendor rolled out its version 3.0 software release for Cisco HyperFlex, which now includes support for Microsoft Hyper-V and the ability to expand hyper-converged clusters to 64 nodes. The product also includes support for multi-cloud environments, a growing area of focus for IT service providers.
From the multi-cloud perspective, the software upgrade includes AppDynamics with HyperFlex, which lets customers monitor the performance of hybrid applications running on HyperFlex and across multiple clouds, according to Cisco. Other software elements include CloudCenter for HyperFlex, which provides workload lifecycle management for customers spanning private and public clouds. Continued »
The recently concluded Citrix Summit 2018 underscored two important trends: a continued concentration on the vendor’s core technology stack and an emphasis on cloud-based business.
The refocusing has actually been going on for a while. In 2015, the company began discontinuing products deemed no longer central to its strategic objectives. VDI-in-a-Box was one early product to be cut. TechTarget’s BrianMadden site provided the details on a more recent round of product line restructuring in Oct. 2017.
The Citrix partner community has been largely onboard with the refocusing on core technologies. Nancy Pautsch, president of Envision IT, a Citrix partner in Madison, Wis., attended Citrix Summit 2018 and called the vendor’s “focused innovation” one of the notable themes at the conference. Continued »