David Powell, a channel thought leader who helped lay the groundwork for recurring revenue sales growth at one of the top managed service providers in the country, has taken a new job at LogicMonitor aimed at leading the channel to a new era of "application-centric" and business outcome services sales growth.
Powell, a key player in helping drive the astronomical growth in recurring revenue cloud and managed services sales at TekLinks, No. 174 on the 2016 CRN Solution Provider 500, has been named general manager of the service provider business at LogicMonitor, maker of a highly regarded SaaS-based performance monitoring for "modern IT infrastructure."
Powell, who spent seven and a half years at TekLinks, most recently as vice president of marketing and strategic development, said the new job opens the door for him to play a key role in helping partners drive double- and triple-digit growth in sales and profits by pivoting from infrastructure performance to focused business outcomes.
That pivot effectively means adopting a strategic service provider business model transformation that "changes the conversation" from speeds and feeds discussions with CIOs to business outcome discussions with line-of-business leaders, said Powell.
"Partners need to look at each application and determine what is the most effective and efficient way to deliver that application or workload to yield a certain business outcome," said Powell in an interview with CRN. "It requires an application-centric view of the IT world. Infrastructure spend is now tied to business outcomes. Infrastructure needs to serve the application."
Powell, who has always had a keen eye on identifying and capitalizing on channel shifts, said LogicMonitor's infrastructure platform is a foundational technology to help partners make the pivot to the strategic service provider application-centric model. That's because LogicMonitor has the platform and tools that open the door for partners to monitor modern IT infrastructure in diverse environments like Amazon, on-premise data centers or even traditional IT network infrastructure.
Powell's appointment is part of a commitment by LogicMonitor CEO Kevin McGibben to aggressively grow the service provider business with MSPs. McGibben told CRN in a roundtable of disruptive emerging vendors that the company is committed to relying more heavily on service providers, which currently account for about 40 percent of the company's sales. "We are laying down some bets that we think are good for both us and for our partners, and we fully expect it to continue to accelerate the business," said McGibben. "For us, we see more dependence on the channel partners as we go forward."
Powell compared the dramatic change in the channel business model to the evolution of content delivery in the TV business. The TV business, in fact, has moved from three networks delivering content off-premise to a business where content is driven by applications like Netflix, Hulu, ESPN and HBONow, said Powell.
"In the TV model, customers are looking at what is the best way to get the content they want to see from a specific place," said Powell. "You are aggregating disparate sources to create a unified experience. That is the exact thing that is going on in the IT space where customers are sourcing applications from disparate sources like Azure, Amazon, a data center nearby or on-premise to create a unified user experience."
The move to help drive a new era of application services revenue in the channel is not all that different from the pioneering work that Powell did to build the fast-growing recurring revenue services model at TekLinks.