Why vendors need to change their view of the channel
It’s 2012 and the IT channel is changing. More to the point, the IT channel has changed, and I don’t think it will be coming back. At least the way we remember it.
For a few years now I’ve been witnessing a shift in the way vendors and service providers interact. The shift has been subtle but if you pay attention to what’s happening, it is a big change in the way vendors and MSPs are behaving. Since 2008, vendors of all sizes have been replaying their age old dilemma; do we go direct or through the channel? Cloud has only served to confuse this issue, with companies like Google, Microsoft, Amazon, and others now going direct to end-users with their services.
Add to this confusion the fact that MSPs are now beginning to sell to other MSPs in record numbers. NOC, help desk, security, hosting, and other capabilities are being offered to MSPs by companies who have not previously sold through the channel. The channel is changing before our very eyes. The question that remains is how will vendors utilize the channel in the future. This is what I believe will happen.
We are now seeing vendors employing a different approach to channel development, particularly when it comes to recruiting MSPs. It used to be standard channel practice to assemble partner programs that had the most numbers of MSPs. In fact, if you look at most of the RMM platform vendors, you’ll see partners numbers that are relatively similar. When you look deeper, all these vendors are now trying to make their existing MSPs more successful. Recruiting new MSPs is still important, but if they can’t make existing MSPs more productive then just adding more partners won’t really matter. This philosophy is spreading and now new MSP programs launched by vendors are shifting focus from the number of MSPs to the right MSPs.
Case in point, Intuit launched a partner program for service providers that wanted to commercially host QuickBooks and other Intuit products. Instead of just accepting anyone that applied, Intuit established fairly rigorous filters to ensure that they get only qualified and tested partners. Other vendors, including legacy channel veterans, are now planning to launch MSP programs and are taking a similar approach to Intuit. Smarter MSPs, mean better, more efficient and productive partners, who don’t drain resources.
In 12 years of MSP and channel experience, I have never witnessed such a widespread shift of vendors moving towards smaller, more productive, and more agile MSP partner programs. The only question I have is how long will it take the rest of the vendor community follow this path.
Charles Weaver - Jan 24th, 2012 - General
Charles: you hit it right on the head…to quote an over-used cliche: Small is the new big, and it’s impact on the channel is still playing out…
The upside is that there are more options available than ever for MSPs, particularly with SAAS having become the dominant delivery model for many large vendors.
the downside: there are a dizzying number of choices in the market, and, with the inevitable fallout of a saturated market, some of those choices may not be available in coming months and even years. Not to say that MSPs should avoid newcomers (on the contrary, there are some great new products and services that have recently surfaced), but it IS critical to have a backup.
Even with the many changes taking place in our profession, one constant remains: clients look to all of us for our expertise. THAT will never change…
Jim Van
Partner
Logicomm
Http://www.logicomm-inc.com
Jim – I think we’re about to go through (again) what MSPs went through in 2003-2006, which is a steady influx of untested, possibly under qualified companies claiming to be MSPs and confusing the landscape. I think this is part of the reason the vendors (at least the smart ones who went through this before) are wanting to choose wisely now.