VARs Fastest-Growing Segment Of MSP Market, MSP Group Says

In turn, many MSPs are developing channel programs, the majority of which are private-label programs that enable these channel partners to own the customer relationship.

A keynote speech by Kathy Riggs, director of vendor management and MSP partnerships at Ingram Micro, during a GMN conference last week reflected the necessity of working with the channel.

In her keynote Riggs outlined how to develop an MSP channel. At the top of the list is the need to keep the VAR engaged, meaning not bypassing the VAR to get to the customer. Riggs also emphasized that MSPs need to show financial stability and a strong return on investment to potential channel partners.

Darren Wiebe, CTO of Voyus, a British Columbia-based MSP, said his company is developing a channel program and currently has three partners.

"We want to get it right before we bring it to the U.S.," he said.

A major obstacle is changing the mind-set of VARs. These companies traditionally rely on projects to generate revenue, but MSPs are attempting to entice them with a subscription-based recurring revenue model.

"It's a lot easier to budget, and in the long run a subscription-base payment model is more appealing to the customer," said Todd Beakey, vice president of business development at RSpeed, a San Ramon, Calif.-based MSP focused on the financial services industry.