Missing The MSP Boat

One of the most distressing signs of the lack of intelligent life in the vendor channel universe is the dearth of channel programs coming from most of the major vendors for managed service providers.

STEVEN BURKE Can be reached at (781) 839-1221 or via e-mail at sburke@cmp.com.

One reason most vendors have failed to pull the trigger on an MSP channel program is they plainly and simply have ambitions to go direct with their own MSP offerings. Many of these vendors have hit the wall in the enterprise market and are salivating at the prospect of going around their channel partners in a bid to capture monthly recurring revenue subscription business on their own. To be fair, some are offering what can only be termed meager agent fees for VARs selling these services. It’s all about vendors thinking their brand is bigger than the local touch and services punch delivered by solution providers.

A large percentage of VARs have already transformed themselves into MSPs. More are doing so every day. They are making money on their own branded monthly recurring revenue subscription services, which are pulling through vendor product sales. Vendors just don’t get it. As trusted IT advisers for small and midsize businesses, MSPs are making the IT buying decisions for their clients. Vendors that don’t influence these MSPs are going to miss what is becoming the new route to market.

There is no way to say it other than the major vendors are so out of touch with day-to-day channel dynamics that they are missing the MSP boat. Dell, meanwhile, desperate for services revenue after hitting a hardware wall, is poised to strike. Maybe the major vendors will wake up when they find that their channel boat has a hole in it and is sinking fast.

Are you on the MSP boat? Let me know at (781) 839-1221 or via e-mail at sburke@cmp.com.

Tweet

   

More Components & Peripherals