Dell vs. Gateway – both are offering managed services now

Mike — Sun, 28 Jun 2009 03:45:10 +0000

As more of the big dogs come into the market, it will get interesting for independent service providers to decide who (if) they want to align with.

I’ve heard more and more people saying that Dell’s channel progam is a wolf in sheep’s clothing. I don’t know enough about the details myself to say if that’s true or not, but it wouldn’t surprise me in the least.

I thought Peter Sandiford’s latest blurb in the Level Platforms newsletter was an interesting take on this subject. Apparently LPI has recently partnered with Acer (Gateway) to help them roll out a managed services offering, but Acer seems to have a very pro-channel position.

As Peter mentions, more and more large companies with major firepower are entering the managed services space in one way or another. The question that independent managed services providers will soon face is whether or not they should choose to align themselves with one of these large companies, or if they believe they can “go it alone”.

I wish I knew the answer. My guess is that in many cases, it will make sense for a small MSP to join forces with one of the larger businesses. On the other hand, I also believe that there is room for independent MSPs to shine by offering a differentiated level of service.

I’ve posted Peter’s article in full below.

June 25, 2009
Issue 5

CEO Message

Vendors in Managed Services – Dell versus Acer (Gateway)

Late last month we announced that Acer had chosen Level Platforms to help them power a new Gateway Managed Services offering as part of their new drive into the business market. (See full press release.) With their huge market share in Europe, it makes sense that Gateway Managed Services is initially focused on their 50,000 channel partners in the EMEA region. With Dell announcing their launch across North America earlier this year, the Gateway announcement represents the second major computer manufacturer to enter the managed services market. What do these have in common and what does it mean for solution providers offering or planning to offer managed services?

Dell’s attack on the market looks to me like an exact copy of their assault on the computer product market 25 years ago. Just substitute “Services Direct” for the infamous Dell branding “Product Direct” and you can see the future unfolding in managed services. Dell’s token channel program offers minor agents’ fees, but there is no practical role for the solution provider in all this, except to act as a sales agent for completely centralized services, and to provide some low value, local, on-site services. I am sure that some solution providers, the ones who continue to focus on product sales, will find this attractive; but for the vast majority of solution providers, who make most of their money on services and enjoy the opportunity to define a unique set of services for their targeted customers, signing up with Dell clearly represents the worst of all possible options.

Acer, on the other hand, is a 100% channel business and their Gateway Managed Services reflects this radically different business strategy. Gateway recognizes that their success depends on the success of their channel partners, and in today’s environment, that means their channel partners’ successful adoption of managed services. Rather than ask their partners to resell a centralized service offering, they are providing a complete set of tools that allow their partners to succeed with minimal investment and maximum return, out-of-the-gate. Their entire focus is to recognize their partner’s desire for account control, delivery of differentiated value to their customers, and leadership in their markets, all facilitated by their investment in their channel partner’s success.

A number of vendors have created very specific managed services offerings to enhance the value of their own specific offerings. These have met with limited success in the SMB market where the key to success is to monitor and manage the many interactions among the diverse and expanding ecosystem of hundreds of products and services. Just as they were 25 years ago when Dell entered the market, the battle lines are forming between channel-friendly vendors and those that see the opportunity to exploit remote monitoring and management to create a direct, online, end-customer relationship.

We are entering the next phase of growth when large organizations with scale, brand and strategic motivation are entering the market. Partnering with the new wave of channel-friendly vendors and distributors like Acer and Ingram Micro represents a great opportunity for many solution providers offering managed services.

Peter Sandiford
CEO
psandiford@levelplatforms.com

Peter Sandiford, CEO of Level Platforms, says you don’t need to be an MSP. My thoughts…

Mike — Fri, 01 Aug 2008 21:06:03 +0000

This post is for those just getting started in managed services or having a hard time getting momentum…

I read a post/article from Level Platforms CEO Peter Sandiford today titled You Don’t Have to Be a Managed Services Provider and thought it was great (I’ve copied it in its entirety below).

Managed Services has become such a buzz-word that it has taken on some mysterious meaning or power in some peoples’ minds. I can hear them thinking:

“If only I could get into managed services.”

“If only I had more of a managed services business.”

Whether they realize it or not, they’ve made managed services into something more difficult than it is; they’ve made it something hard to achieve.

But it shouldn’t be.

Managed Services is really nothing more than good business fundamentals with a fancy name; people should be careful not to complicate things too much.

Sell recurring revenue instead of one-time revenue whenever possible
Position yourself as someone who provides a solution, not someone that puts out fires and charges a lot to do so
Structure your service so that you are more proactive and less reactive; it makes you look better and makes it easier to manage your business
Automate your service delivery whenever possible

If all of that is called Managed Services…great. But it’s very important for everyone to realize that you don’t have to do all of these things at once or in every situation to start building a better business for yourself. Apply what you can, where you can. Do it where it makes sense for you and your customer today, then look for ways to continue doing it in the future.

Start where you are today with what you have today, and before you know it you’ll be a “managed service provider” as well…if you want to call it that!

MRC

smbITpros.com» Peter Sandiford

Dell vs. Gateway – both are offering managed services now

Peter Sandiford, CEO of Level Platforms, says you don’t need to be an MSP. My thoughts…