Monday Morning Impact – April 13

By Ken Presti, Senior Consultant, Channel Impact

CompTIA: Security Services on the Upswing

Channel companies see opportunities for business growth in the security sector, according to new research released today by CompTIA. But the “Trends in Information Security” study also points out the challenges associated with staying up-to-date in this rapidly-evolving field, which has become nothing less than an arms race between white hat security experts and black hat cyber criminals.

“Some channel companies will need to change sales structures, re-train staff or bring on new hires,” said Seth Robinson, senior director, technology analysis, CompTIA. “Others will have to educate themselves on how all the pieces of a complete security solution fit together to provide customers with the best services.”

CompTIA’s October 2014 survey of nearly 300 U.S. based IT companies finds that nearly two-thirds (63 percent) expect their revenue from security services to grow over the next 12 months. One in five companies anticipates “significant” growth.

Nearly three of four companies say they currently have security services as part of the portfolio, with most firms offering security as a part of other solutions, rather than as a standalone product or service. Network security, business continuity and email security are the typical foundational elements.

“Data protection is also widely offered, but there are many flavors of data protection and the services currently offered may not be as comprehensive as possible,” Robinson said. He added that there is strong potential for channel companies to expand in other areas, as well.

“Compliance management, risk management, cloud security, identity and access management, mobile security and security information and event management could all easily become components in a new security baseline,” he said.

Channel Impact
IT security is one of the most challenging aspects of today’s technology environment. And where there is complexity, there tends to be solid opportunity for the channel. This research systematically supports the conventional wisdom around the growth of security products and services, combined with the channel’s emphasis on their delivery.

Egenera Launches Xterity Cloud Services

Egenera, a Boxborough, Mass.-based converged infrastructure and cloud management software company has rolled out a multi-cloud service specifically built for managed service providers and the traditional IT reseller community. The initiative is designed to help resellers enter the cloud services market with their own branded service without up-front capital costs or ongoing management costs.

Xterity cloud services are built on Egenera Cloud Suite, an orchestration platform that enables users to create and manage scalable and secure private, public and hybrid cloud services. The software automates the implementation of complex IT environments including applications, networking and security workflows, and gives the operator a single control plane from which they can manage the commercial and technical engagement with their clients.

“A global wholesale service like this makes it simple for partners to deliver a fully managed cloud service and deploy mission critical applications – all without having to build, manage or own their own infrastructure,” said Pete Manca, CEO of Egenera. “This frees resellers to focus on their customer relationships, create custom solutions and enhance their brand with their end users.”

Channel Impact
Channel partners consistently feel the pressure to engage more deeply in cloud-based and managed services offerings. But developing such an offer on independent basis can often be cost prohibitive. Egenera joins a growing list of vendors developing innovative ways to augment such moves for their partners. Look for this trend to continue over time.

Barracuda Updates Worldwide Partner Program

Barracuda Networks has updated its partner strategy to support revamped partner tiers, increased discounts for specific product families, an expanded deal registration capacity, and a new MSP program for Barracuda NG Firewall and Barracuda Backup. This option opens up new revenue generation opportunities for channel partners who offer managed security and storage services to customers. Partners will also receive higher discounts for evaluation products throughout the company’s product portfolio, plus access to extensive product training.

Barracuda Networks claims an installed base in more than 150,000 organizations worldwide with solutions delivered in appliance, virtual appliance, cloud, and hybrid deployments.

Channel Impact
One of the great truisms of the industry is the need to update channel programs over time in order to respond to changes in market forces and changes in portfolio. Barracuda’s announcement represents the culmination of such an effort to upgrade, combined with the acknowledgment of the importance of programmatic infrastructure to support the managed services environment.