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No NOC? No Problem. Solution Providers Partner For Managed Services.
6:40 PM EDT Tue. Aug. 18, 2009
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But solution providers are finding they can break down the no-NOC barrier by pairing up and working with each other to sell managed services, which represent a market opportunity estimated at $40 billion, that grows at a rate of about 20 percent annually, according to some estimates.
Two VARs, Heit and WestShore Technologies, are bucking the no-NOC trend by partnering up for managed services offerings.
Heit, a Cisco Systems Silver certified partner in Fort Collins, Colo., has its own NOC, while security-focused solution provider WestShore, Tampa, Fla., does not. Along with having a NOC, Heit holds a host of managed services designations, such as Cisco Powered Managed Security, Cisco Powered Managed Unified Communications and Cisco Managed Services Partner.
The two solution providers teamed up recently, after a WestShore customer asked about security management.
"We got an opportunity around [Cisco's] self-defending network, did the implementation, and the customer wanted ongoing monitoring and management," said Jason Lang, WestShore's president and CEO.
But with that opportunity came the questions: "How do we supply and deliver services when we lack 24x7 resources?" Lang asked. "Is this something we want to undertake and invest a ton of money in?"
Lang estimated it would take years for WestShore to build out its own NOC and cost six to seven figures -- time and money the company couldn't expend.
And as WestShore was scouting ways to offer managed services without eating the additional overhead for resources, Heit was looking to branch beyond its managed services offerings for the financial industry and hoping to get exposure in more verticals and markets.
"Heit has a NOC, and it'd be a lot easier for you to resell our managed services," Dan Holt, Heit's CEO said.
Heit Vice President of Sales Ken Totura added: "Building out a NOC takes people, processes, tools and credibility."
WestShore's Lang said he saw a case study for Heit and contacted the company about reselling Heit's managed services. The two struck a deal.
"Instead of being competitors, we can be partners," he said, adding that WestShore's staff and Heit's staff complement each other. WestShore has a couple of CCSPs on staff; Heit has CCSPs on third shift for 24x7 coverage. Now WestShore can expand its market by selling security, infrastructure and managed services in its Tampa region.
Next: Partner-To-Partner Collaboration A 'Win-Win'
