https://www.channelfutures.com/wp-content/themes/channelfutures_child/assets/images/logo/footer-new-logo.png
  • Home
  • Technologies
    • Back
    • Analytics
    • Artificial Intelligence
    • Cloud
    • Data Centers
    • Desktop
    • IoT
    • Mobility
    • Networking
    • Open Source
    • RMM/PSA
    • Security
    • Virtualization
    • Voice/Connectivity
  • Strategy
    • Back
    • Best Practices
    • Business Models
    • Channel 101
    • Channel Programs
    • Channel Research
    • Digital Transformation
    • Diversity & Inclusion
    • Leadership
    • Mergers and Acquisitions
    • Sales & Marketing
    • Specialty Practices
  • MSSP Insider
    • Back
    • Business of Security
    • Cloud and Edge
    • Endpoint
    • Network
    • People and Careers
    • Training and Policies
  • MSP 501
    • Back
    • 2021 MSP 501 Application
    • 2020 MSP 501 Rankings
    • 2020 Hot 101 Rankings
    • 2020 MSP 501 Report
  • Intelligence
    • Back
    • Our Sponsors
    • From the Industry
    • Content Resources
    • COVID-19 Partner Help
    • Galleries
    • Podcasts
    • Reports
    • Videos
    • Webinars
    • White Papers
  • EMEA
  • Awards
    • Back
    • Excellence in Digital Services
    • 2021 MSP 501
    • Top Gun 51
  • Events
    • Back
    • CP Conference & Expo
    • Channel Partners Evolution
    • Channel Evolution Europe
    • Channel Partners Event Coverage
    • Webinars
  • Channel Mentor
    • Back
    • Channel Market Intelligence
    • Channel Educational Series
Channel Futures
  • NEWSLETTER
  • Home
  • Technologies
    • Back
    • Analytics
    • Artificial Intelligence
    • Cloud
    • Data Centers
    • Desktop
    • IoT
    • Mobility
    • Networking
    • Open Source
    • RMM/PSA
    • Security
    • Virtualization
    • Voice/Connectivity
  • Strategy
    • Back
    • Best Practices
    • Business Models
    • Channel 101
    • Channel Programs
    • Channel Research
    • Digital Transformation
    • Diversity & Inclusion
    • Leadership
    • Mergers and Acquisitions
    • Sales & Marketing
    • Specialty Practices
  • MSSP Insider
    • Back
    • Business of Security
    • Cloud and Edge
    • Endpoint
    • Network
    • People and Careers
    • Training and Policies
  • MSP 501
    • Back
    • 2021 MSP 501 Application
    • 2020 MSP 501 Rankings
    • 2020 Hot 101 Rankings
    • 2020 MSP 501 Report
  • Intelligence
    • Back
    • Our Sponsors
    • From the Industry
    • Content Resources
    • COVID-19 Partner Help
    • Galleries
    • Podcasts
    • Reports
    • Videos
    • Webinars
    • White Papers
  • EMEA
  • Awards
    • Back
    • Excellence in Digital Services
    • 2021 MSP 501
    • Top Gun 51
  • Events
    • Back
    • CP Conference & Expo
    • Channel Partners Evolution
    • Channel Evolution Europe
    • Channel Partners Event Coverage
    • Webinars
  • Channel Mentor
    • Back
    • Channel Market Intelligence
    • Channel Educational Series
    • Newsletter
  • REGISTER
  • MSPs
  • VARs / SIs
  • Digital Service Providers
  • Cloud Service Providers
  • CHANNEL PARTNERS ONLINE
 Channel Futures

Cloud


Amazon Web Services: The Big MSP Disconnect

  • Written by Joe Panettieri 1
  • October 27, 2009

Talk about two extremes: Yesterday, Canonical CEO Mark Shuttleworth (the guy behind Ubuntu Linux) said Amazon Web Services has emerged as a de facto cloud standard until open, vendor-neutral cloud standards can be developed. Yet only three percent of MSPs leverage Amazon’s cloud, according to our ongoing MSPmentor 100 survey. What’s behind the disconnect? Here are some thoughts.

Admittedly, I’ve taken some heat in recent months from a few readers who think I spend too much time focused on Amazon Web Services, Amazon Elastic Compute Cloud (EC2) and Amazon Simple Storage Service (S3). But I’m sticking to my guns because I think leading-edge VARs and MSPs are building bridges between on-premise systems and cloud services — particularly Amazon’s web services. Two examples include Levementum and OpenBI, two integrators that have been launching customer applications in Amazon’s cloud throughout 2009.

Also of note: MSP software providers — from Nimsoft to Vembu — are either integrating with Amazon’s cloud or monitoring services in that cloud. (If you’re doing integration work, too, feel free to post a comment.)

Do MSPs Care About Amazon?

Still, we’re early in the cloud game. A key indicator: Only 2.6 percent of MSPmentor 100 survey participants say they’re leveraging Amazon’s cloud. The survey, which runs through Dec. 11, 2009, will allow us to spot and track the world’s 100 most progressive managed service providers. And the Amazon figure could certainly rise or fall since the survey is ongoing.

But who’s right:

  • An outspoken Linux guru (Mark Shuttleworth) and a blogger (me), who think Amazon is a cloud that MSPs can’t afford to ignore?
  • Leading MSPs, 97.4 of which says they have yet to touch or leverage Amazon’s cloud services in any way.

I’m a pretty stubborn guy. I still think Amazon and competing big-vendor clouds can’t be ignored. But readers also remind me that up-and-coming cloud efforts (such as 6Fusion and Channel Cloud) deserve equal time on MSPmentor.

We’ll try our best to offer up that equal time. But I can’t imagine ignoring Amazon… …

Follow MSPmentor via RSS; Facebook; Identi.ca; and Twitter. And sign up for our Enewsletter; Webcasts and Resource Center. Plus, check out more MSP voices at www.MSPtweet.com.

Tags: Cloud Service Providers Digital Service Providers MSPs VARs/SIs Business Models Cloud

Related


  • VDI
    IGEL Integrates Amazon WorkSpaces DaaS with Its Virtual Endpoint OS
    Also, the new Arm-based Raspberry Pi, co-developed by Citrix, IGEL and NComputing, is generally available.
  • Job cuts
    Latest VMware Job Cuts Impact More Workers in California
    The layoffs will begin March 30.
  • Hottest Ticket in Town
    Channel Partners Virtual 2021 Is the Hottest Ticket in Town
    And that means any town, since it’s 100% online. Will you be there?
  • Brexit
    Now That a Brexit Deal is Done, What's Next for the UK Channel?
    There's an Increased need for virtual services and video conferencing, and a focus on security moving forward.

16 comments

  1. Avatar benbree October 27, 2009 @ 2:19 pm
    Reply

    Looking at the most popular services offered by your top 100 MSPs from last year, there is not much play for Amazon in the services provided.

    **Most Popular Managed Services Offered:
    Remote administration: 95%
    Help desk: 93.6%
    Managed security: 81.8%
    Managed storage: 66%
    Hosted/SaaS email: 57.9%
    Hardware as a service (HaaS): 53.2%
    VoIP/IP telephony: 43.7%
    Hosted/SaaS SharePoint: 29.3%
    Unified communications: 29.1%
    Managed print services: 28.4%
    Hosted/SaaS CRM: 18.4%
    Video surveillance: 17.3%

    **taken from The MSPmentor 100 2008-2009 Edition

    However, if we were to consider VMware vSphere as another cloud services enabler or cloud operating system, I think you would find that more than half your MSPs have experience using it. I think that is too early for most of the small to medium sized enterprises to consider moving their services to Amazon or for most MSPs to consider hosting their (running fine at home) services there. It just seems too soon for me.

  2. Avatar Joe Panettieri October 27, 2009 @ 3:23 pm
    Reply

    Benbree: Thanks for pointing out the all-important virtualization angle. I’ll be sure to keep that in mind as we continue to track cloud and SaaS opportunities/challenges for MSPs.
    -jp

  3. Avatar Tom OReilly October 27, 2009 @ 3:47 pm
    Reply

    I am in the process of developing a new MSP in Europe. We have decided to use Amazon EC2 to get up and running quickly and without large startup costs. I am not sure if this will be an interim solution, moving to a colocation facility with our own servers at somepoint, or if it will be our permanent setup.
    I agree with you that the Amazon cloud products are extremely powerful and cannot be ignored by the MSP community. That being said, I think that the thing keeping many smaller businesses from giving it a try is the unknown of how cloud services will/can integrate with their current infrastructure.
    The great MSPs will figure this out, provide their customers with a great service and become even greater MSPs.

  4. Avatar Brendan Cosgrove October 27, 2009 @ 4:10 pm
    Reply

    Integration with the cloud is the barrier. Without specific skills or knowledge/experience even the great MSP’s will need to figure out how to leverage the cloud in a way that is profitable and supportable. Many great MSP’s rely on the supportability and stability of off the shelf software so this move to the cloud feels messy, I think. Also the cloud still isn’t a friend to compliance sensitive businesses with tight budgets.

    my 2 cents.

  5. Avatar Joe Panettieri October 27, 2009 @ 4:20 pm
    Reply

    Tom: Thanks for the update. Please let us know how your Amazon efforts evolve.
    Brendan: I wonder if it makes sense for MSPs to assign one employee who can basically test/virtualize applications in the Amazon cloud or another cloud. Lots of folks claim you can now virtualize Small Business Server and other Microsoft apps up on a public cloud. The only way MSPs are going to learn how the systems work is to actually try them and see the strengths/weaknesses first-hand.

    While on-premise options may remain a VAR’s bread-and-butter during the day, I recommend burning the midnight oil to test many of these services for future revenue opportunities…

  6. Avatar Brendan Cosgrove October 27, 2009 @ 4:44 pm
    Reply

    I agree that without resources assigned few MSPs are going to make the switch on their own.

    The compliance issue will become front of mind for many MSPs especially any with a vertical focus on businesses that have to be PCI compliant.

    Seems like a great opportunity for a “Cloud Enablement” business. They’dmuch like the SaaS enablers out now, but with a more custom focus.

  7. Avatar Richard Zuckerman October 27, 2009 @ 8:05 pm
    Reply

    The issue I have with S3 and its siblings is picking the usage numbers to properly estimate what the services will cost.

  8. Avatar John Cowan October 28, 2009 @ 1:26 am
    Reply

    Joe –

    I’ve blogged about this SO many times on http://www.6fusion.wordpress.com, but I’ll say it again here in three succinct points:

    1) Amazon an other related clouds are not geared for the enterprise. They are geared for web application developers and hobbyists looking for cheap startup costs and have nothing serious to migrate. Period.

    2) The difference between someone that thinks they know cloud and someone that has actually SOLD cloud is the ability to answer the question: What does it cost? Ahmen, Richard Zuckerman. Thats why we created Profiler for our MSP partners. Been there, done that and cracked the nut.

    3) Cloud is not about selling software subscriptions. Anyone that tells you they are in the cloud business and they try to sell you a software subscription (even vmware, folks), is not a cloud vendor. They are someone that can read a newspaper and realize cloud is all the buzz.

    Here’s the pepsi challenge for MSPs: Pick three cloud vendors and ask each one what THEY are going to do for your business to help you grow your managed service practice, integrate with your billing models and help you launch new hosted products.

    Develop a partnership with the vendor that is willing to put some skin in the game for you….

  9. Avatar Joe Panettieri October 28, 2009 @ 1:36 am
    Reply

    John: Let me know if any MSPs take the Pepsi, er, cloud challenge. And keep us posted as MSPs take a closer look at 6fusion.
    -jp

  10. Avatar Andy October 28, 2009 @ 5:51 am
    Reply

    One of the most popular MSP offering is managed storage and it works on Amazon S3 pretty well. There are plenty of data backup platforms available for MSPs and I think it is up to ISV to close the gap between what Amazon offers as IaaS and what MSP can use to offer services to their customers.

  11. Avatar Lux October 28, 2009 @ 6:22 am
    Reply

    Thanks for the mention, Joe,

    Yes, we’re dovetailing with some of the popular cloud platforms out there. We work with Amazon, Nirvanix, Parascale amp; Caringo and will soon be on Azure too (and perhaps on Mosso – sorry, they’re now called the Rackspace cloud). And we’ve done some work with 6Fusion (above) too.

    In our experience…

    A lot of MSPs are interested/curious about using the cloud – in our use case, for providing online backup services. During their initial evaluation, many of them even fire up a few AMIs amp; some storage on Amazon – and have reported good results. However, only a subset of them (at this time) actually go ahead with running their backup business off the cloud. Why? I think there are a few reasons…

    a) The unpredictability of the cost model. While calculable, it is still unpredictable since it cannot be pre-determined. John raised this in his comment and tools like his ‘Profiler’ seek to address exactly this issue.

    b) They never wanted to, anyway: many people evaluating the cloud are doing so driven more by curiosity than business metrics. Once they’ve checked it out, they simply revert to what they’re more comfortable and familiar with – a hosted server.

    c) Related to the business metrics point in our business context: A person starting an online backup business with just a few customers probably won’t see savings ‘to write home about’ at his scale of operation. As he scales up, and needs to cluster or load balance backup servers, or provision them on the fly, the benefits begin to accrue.

    d) Expertise. Not all MSPs may have (or think they have)the requisite technical expertise. Though this barrier is progressively reducing, we have had smaller service providers comment that an Amazon deployment will probably be difficult for them to handle.

    Anyway, we’re seeing increasing interest amp; curiosity – if that’s any barometer of future adoption. And we even created a video parody on the whole cloud hype. If you’d like an introduction to cloud computing amp; storage in a ‘rap song format’, please check it out at:

    http://blogs.vembu.com/2009/10/cloud-cloud-maybe/

    (shameless plug, albeit, some entertainment)

    Lux

  12. Avatar Joe Panettieri October 28, 2009 @ 4:03 pm
    Reply

    Lux: Thanks for the deeper analysis. Shameless plugs like above are welcome when you take the time to share comprehensive thoughts that education readers 😉

    Readers: An update … Amazon has cut its cloud prices.

  13. Avatar John Cowan October 28, 2009 @ 8:04 pm
    Reply

    Joe –

    I am sitting at Georgia Tech right now (cloudcamp Atlanta), which started with an expert panel general session. One of the big questions from the audience was cloud sla.

    After a lot of wrangling with the audience, the panel yielded the answer to your blog post:

    They concluded “if your expectation is to receive anything more than 3 nines availability, you shouldn’t use clouds like amazon and google.”

    This is one of the most lucid conclusions I’ve heard in a long time…

  14. Avatar Joe Panettieri October 29, 2009 @ 9:52 am
    Reply

    John: That’s actually a pretty interesting anecdote. I hadn’t heard of CloudCamp Atlanta but will check it out.

  15. Avatar John Cowan October 29, 2009 @ 2:51 pm
    Reply

    Joe –

    To close the loop on sla and availability I think it’s really important that MSP’s (especially on behalf of their customers) look under the hood of the cloud SLA. It’s not enough to ‘assume’ all SLAs are created equal.

    I *think* it was Alan Macdonald who, during our presentations a couple weeks ago in Scottsdale, made a point of sorting the fine print of Gogrid’s “10,000%” SLA. A lot of the cloud SLA’s are smoke and mirrors and very few of them will extend to the network. I find this strange since the network is probably THE biggest component of cloud. I mean without it all of this is pretty much a non-starter, right?

  16. Avatar Joe Panettieri October 29, 2009 @ 4:38 pm
    Reply

    John: I’d offer a longer comment/reply but I’m busy reviewing a few hosting provider SLAs. No joke. As we continue to expand our own business we’re speaking with hosting providers that virtualize everything for us and scale up/down at a moment’s notice during traffic spikes. I live and breathe site availability every day… but it certainly requires some education as we navigate this stuff.

Leave a comment Cancel reply

-or-

Log in with your Channel Futures account

Alternatively, post a comment by completing the form below:

Your email address will not be published. Required fields are marked *

Related Content

  • Atera Investment to Help Company Assist More MSPs, IT Pros
  • Infoblox Cloud Specialization to Help Partners with SaaS Sales
  • New Commvault EMEA Channel Exec Outlines Plans for Channel
  • VC Firm Greenspring Associates Leads $40M Investment in MSP Electric

Galleries

View all

From The Second City: How to Use Improv as a Business Tool

March 3, 2021

Industry Perspectives

View all

5 Ways XDR Can Improve Operational Efficiency for MSPs

March 4, 2021

Multi-Cloud: Strategy or Inevitable Outcome? (or both?)

March 3, 2021

Backup Vulnerability: 4 Targets Hackers Might Utilize to Infiltrate Your Backup Solution

March 2, 2021

Webinars

View all

A Partner’s Perspective on Channel Success in 2021

March 23, 2021

XDR and Why it Matters to MSPs

March 24, 2021

Top Security Trends Impacting Technology Security Providers In 2021

March 25, 2021
  • 1

White Papers

View all

Why Fortinet for my MSSP?

March 2, 2021

Small and Mid-Size Business Security: 4 Steps to Success

March 2, 2021

How SMBs Can Secure Endpoints and Remote Workers for the Long Haul

March 2, 2021

Upcoming Events

View all

Channel Partners Conference & Expo

November 1, 2021 - November 4, 2021

Videos and Fastchats

View all

FASTCHAT: How SOAR Eliminates Security Challenges and Elevates Service Provider Revenues

January 6, 2021

Happy Holidays from Channel Partners & Channel Futures!

December 21, 2020

FASTCHAT: How Old, Unpatched Technologies Are Creating New Security Threats for MSPs and Their Customers

December 3, 2020

Twitter

ChannelFutures

Chinese hacker group #HAFNIUM exploits critical @MSFTExchange Server vulnerability, could impact thousands.… twitter.com/i/web/status/1…

March 7, 2021
ChannelFutures

Our latest #Cybersecurity Roundup highlights #CPVirtual, @Huntresslabs, @Entrust_Corp and @InsightEnt.… twitter.com/i/web/status/1…

March 5, 2021
ChannelFutures

RT @Channel_Expo: A HUGE thank you to our amazing #CPVirtual sponsors and exhibitors! 👏 @ATTBusiness @DellTech @8x8 @lumentechco @telarus @…

March 5, 2021
ChannelFutures

.@okta acquiring rival @auth0 in $6.5 billion all-stock transaction. #security dlvr.it/Rtzwdp https://t.co/4LvHCJuwsR

March 4, 2021
ChannelFutures

.@MicrosoftTeams features are coming to @MSFTDynamics365, the company announced at @MS_Ignite. #MicrosoftIgnite… twitter.com/i/web/status/1…

March 4, 2021
ChannelFutures

.@PreciselyData acquired by Clearlake Capital, @TAAssociates. #digitaltransformation dlvr.it/RtzbKg https://t.co/1rNYnTScxq

March 4, 2021
ChannelFutures

Thanks for attending #CPVirtual. Here's a Day 3 wrap and a look ahead to #CPExpo Homecoming in November!… twitter.com/i/web/status/1…

March 4, 2021
ChannelFutures

.@Veeam announces six annual Impact Partner Awards, with @SHI_Intl, @LogicalisUS, more. #cloud… twitter.com/i/web/status/1…

March 4, 2021

MSSP Insider

Newsletters and Updates

Sign up for The Channel Report, Channel Futures Update, MSP 501 Newsletter and more.

Live Channel Events

Get the latest information on the next industry-leading Channel Partners event.

Channel Partners Online

Want more? Find more channel news and analysis on our sister site, Channel Partners.

Media Kit And Advertising

Want to reach our audience? Access our media kit

DISCOVER MORE FROM INFORMA TECH

  • Channel Partners Online
  • Channel Partners Events
  • MSP 501
  • MSSP Insider
  • IoT World Today
  • Webhostingtalk

WORKING WITH US

  • Contact
  • About us
  • Advertise
  • Newsletter

FOLLOW Channel Futures ON SOCIAL

  • Privacy
  • CCPA: “Do Not Sell My Data”
  • Cookie Policy
  • Terms
Copyright © 2021 Informa PLC. Informa PLC is registered in England and Wales with company number 8860726 whose registered and Head office is 5 Howick Place, London, SW1P 1WG.
This website uses cookies, including third party ones, to allow for analysis of how people use our website in order to improve your experience and our services. By continuing to use our website, you agree to the use of such cookies. Click here for more information on our Cookie Policy and Privacy Policy.
X