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CRN Exclusive: NGenx Boosts MSP Access By 100 With TeamLogic IT Deal

Jimmy Sheridan

Chicago-based Desktop-as-a-Service vendor nGenx has added nearly 100 managed service providers with just one stroke of the pen.

NGenx has launched a partnership with MSP franchisor TeamLogic IT that will allow nGenx’s hosted workspace to be the default DaaS product for TeamLogic’s nearly 100 franchise locations throughout North America.

"This is a significant initiative for us," said Frank Picarello, chief operating officer of TeamLogic IT "and it will go a long way to ensure year-over-year, double-digit growth."

[Related: IndependenceIT Wins Major Partner Victory Over Citrix With nGenx]

TeamLogic, based in Mission Viejo, Calif., provides managed IT services to local businesses throughout the continent through its franchises. With the deal, TeamLogic gains a solution that will open more opportunities for its franchise owners to discuss solutions such as cloud migration to generate more recurring revenue for their individual businesses, according to Picarello.

And although he says the addition of new cloud business will not incrementally change revenue the way a traditional service would, the extra business will be significant.

The monetary benefit for TeamLogic will be substantial, he said, and far from just a "rounding error."

Individual franchises will not be obligated to use the nGenx platform, but will be supplied with it as a default DaaS platform through TeamLogic IT's corporate organization. That will allow them to deliver complete hosted desktops, applications and data, and migrate clients to a monitored cloud-based platform, keeping them up to date with the latest technology.

"We tend to take the position of being on the edge," Picarello said, adding that with nGenx's solution, TeamLogic IT will be able to have conversations it never had with clients. Thanks to the training and assistance nGenx gives with its service, TeamLogic will be able to move toward that edge with confidence, he added.

"Finding really good partners when you are taking a leading-edge position in the marketplace is essential and can be the difference between making it or not," Picarello said. "We are really ecstatic with [nGenx's] approach to us and the advancements they have made. … we are ecstatic to be their partner."

For nGenx, the deal will improve the company's push toward building up the MSP side of its channel, according to Max Pruger, the company’s chief sales officer.

Although nGenx has always been 100 percent channel-focused, it has always focused on the telco agent side of its channel.

Eight months ago, nGenx brought on Pruger primarily to build the company's MSP channel, he said. At the time, nGenx had fewer than a dozen MSPs in its channel after 15 years in business. However, six months after he came on board, Pruger has grown that roster to nearly 600.

"Team Logic IT really accelerated that sign-up process," he said.

Pruger said that ramp up has been so quick that when the company made its pre-announcement of the deal at TeamLogic's headquarters, they were able to sign 30 new clients within three months.

NGenx will continue to build its MSP channel, according to Pruger, who said the company is looking at other deals with companies similar to TeamLogic that are organized similarly.

Currently, nGenx is generating about 50 percent of its net new sales in the MSP space, he said. He hopes that will rise to 70 percent by the end of 2016.

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