Monday Morning Impact – March 11

Kaseya Survey: MSPs Focus on Differentiated Services

MSPs are beefing up their service mix as the mainstream adoption of cloud computing and security concerns increase sales opportunities. That’s according to the eighth annual MSP Benchmark Survey by Kaseya, an Ireland-based provider of infrastructure management solutions for MSPs and IT organizations.

The survey says MSPs with MRR growth of at least 20 percent have stepped up their game in certain key areas, including hybrid/multi-cloud, security, and data backup.

The report shows an emphasis on scaling up cloud up services for targeted customer segments that match the MSP’s expertise and experience. Adherents of this strategy reported margin ranges almost double those of MSPs overall. In addition, successful MSPs are expanding their security offerings to include emerging capabilities such as real-time intrusion detection, multi-factor authentication, and third-party application updating. To assure effective DR and backup capabilities, 85 percent of the most successful MSPs reported use of products from multiple vendors, enabling them to make their own choices with respect to best-of-breed solutions. That statistic was measured at 78 percent across the broad range of respondents.

Infrastructure monitoring and management continues to be the fastest growing and most widely offered services among all MSPs, and are rapidly becoming table stakes in the MSP marketplace. The survey also found that while top MSPs continue to invest in these areas, they also recognize the opportunity to grow their service lines and maximize profit margins by furnishing customers with new solutions that fit a wider variety of budgets.

“This year’s survey shows that business demands are now more intense and less predictable,” said Jim Lippie, SVP of channel development at Kaseya. “This sets up an evolving MSP landscape in which the winners boost revenue through a broad menu of profitable new services and more efficiently run their own operations through increased automation and modern pricing structures.”

More than one-third of high-performing MSPs report fewer than 10 employees. These MSPs typically leverage automation to put time-consuming routine tasks on autopilot, thereby allowing them to service more endpoints per technician. The survey also suggests that cost-based pricing is fading as top MSPs recognize that focusing solely on cost always leaves the door open for a less-expensive vendor. Instead, they are moving to a pricing model based on the value of their services.

Survey data was gathered from both Kaseya and non-Kaseya customers in the fourth quarter of 2018 with responses from more than 800 MSPs of all sizes in over 40 countries.

Channel Impact^®
The survey reveals the strategies used by a broad range of managed service providers to provide value to their customers.

8×8 Launches New Platform to Support Channel Onboarding and Enablement

8×8, a San Jose-based cloud provider of voice, video, collaboration and contact center solutions, has formally launched “PartnerXchange,” a new online portal that enables channel partners to manage their 8×8-related business from a single pane of glass.

The platform supports partner registration, case registration, deal registration, training/certification management, sales/support status, and provides demand gen resources.

“PartnerXchange enables us to drive efficiencies, while reducing friction, through automation and business management, making it easier and faster for our channel community to do business with us,” said John DeLozier, Channel Chief at 8×8. “There is a host of real-time features with a specific focus on simplified processes and more robust information exchange. PartnerXchange provides a single management platform for visibility into channel partner activities and analytics, enabling us to have a continuous pulse on the business.”

Channel Impact^®
Efficiency is always a key component in today’s successful channel programs.

Kemp Updates Partner Program for Hybrid and Multi-Cloud Applications

Kemp, a New York-based load balancing vendor, has updated its channel program and added new resources for technology alliance partners, system integrators, distributors, value-added resellers, cloud service providers, managed service providers, and solution consultants.

Updated partner benefits include perpetual, subscription and metered licensing pricing options; access to a TCO calculator; multi-vendor load balancing effectiveness assessments; sales and marketing enablement tools; and training programs.

The company is now extending its technology partner integrations to include advanced tier status with VMware on AWS, Select status with Dell EMC Elastic Cloud Storage (ECS), and advanced tier relationship with Amazon Web Services (AWS). Kemp has also extended its cloud service provider partnerships to include CenturyLink, Ceryx, ConvergeOne, Options IT and Hosting.com.

Leveraging a per-app ADC/load balancing consumption model, predictive analytics, and automated issue resolution, Kemp is working to simplify how customers optimize, analyze and secure their applications across private and multi-cloud environments. The company claims more than 25,000 customers and 60,000 application deployments in 115 countries.

Channel Impact^®
The selection of pricing options, combined with the TCO calculator to help calculate the difference between the options, is likely the highlight of this announcement.