MSPs Embracing Google Apps
Anecdotal evidence suggests Google Apps is starting to catch on with managed service providers. A case in point: Roughly 16 percent of MSPs completing our third-annual MSPmentor 100 survey say they are offering Google Apps to their customers. How has Google built a following among MSPs? The answer is pretty simple.
First, a little background: Our MSPmentor 100 survey continues through December 11 and we’ll publish complete results in Q1 2010. Since the survey is still open, the Google Apps response rate can certainly rise or fall. But so far, 16 percent of MSPs are promoting Google Apps to their customers.
At first glance 16 percent isn’t all that big a number. But consider this: Google really didn’t have a Google Apps Reseller channel program until early 2009.
Admittedly, many MSPs continue to dismiss Google because:
- Google Apps is so inexpensive ($50 per user per year) there isn’t much room for VARs and MSPs to make money. The typical engagement allows partners to make $10 per user per year. Translation: A 20-person small business deployment yields a scant $200 to the channel partner — annually.
- Some MSPs worry they’ll lose control of their customers if suddenly desktop productivity applications are shifted into Google’s cloud.
Hitting the Road
Still, a growing minority of MSPs are kicking Google Apps’ tires. One reason: Google attended a range of managed services events and channel conferences in 2009, including Autotask Community Live, ConnectWise Partner Summit and CompTIA Breakaway.
During those conferences, Google channel managers like Jeff Ragusa outlined how VARs and MSPs can use Google Apps to spark larger managed services conversations with customers. Also of note: ConnectWise CEO Arnie Bellini recently visited Google to discuss the cloud computing and managed services markets.
The key takeaway: I’m not suggesting the MSP masses will embrace Google Apps. But a growing number of folks are taking the plunge. And I think we’ve all learned not to underestimate the search giant.
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Has Google released the number of Google App Resellers they currently have in the program?
Kevin: I believe roughly 400 resellers are officially part of the Google Apps Reseller program. But there are plenty of VARs/MSPs promoting Google Apps to customers without being an official reseller, from what I hear.
-jp
Thanks Joe.
We’re very glad to see more MSPs/VARs involved in the Google Apps space. I’m eargly awaiting the result of the survey. We think that the only way to foster the Cloud’s sense of legitimacy and validity from the Market’s perspective is through the Channel; The IT Nation, per Bellini.
Arnie’s keynote not only mentions Google, but SADA Systems, Inc. in the same breath, we helped facilitate that visit. Some MSPs, SADA Systems included, have gone well beyond just kicking the tires. I personally hope we’re not alone? In fact, by virtue of our established Cloud Service Practice around Google and their Apps platform, we’re helping lead the charge for MSPs and their entry into the Cloud through our most recent Channel offering, thecloudtoolkit.com. SADA delivers these tools to VARs/MSPs, who need zero-resistance options to deliver a complete and seamless Cloud experience for their already uncertain, sometimes skeptical market.
We too are not suggesting blind adoption. Rather, we think that VARs and MSPs become engaged in discussions with their clients about the Cloud, what their options are, understand their needs, and if appropriate, help move them into Apps, BPOS, or whatever appropriate platform.
Niv Dolgin
Director, ITS
SADA Systems, Inc.
2010 will be a key year for MSP’s, Google Apps amp; open source which will be a primary driver of the global reset in IT spending expectations.
With less money flowing into the pockets of fewer vendors, we can expect to see both increased consolidation and fierce competition for the IT spending that remains. Those MSP’s amp; vendors that can help CIOs amp; business owners do more with less stand to benefit from this shift to low-cost, high-value computing.
And those that can’t? Well, let’s just say they may pine for the good old days of the global recession.
Hint: Focus on scaling your “service” offerings and not reselling “stuff”.
Michael Proper
CEO amp; Chairman
C: 801.361.6453
O: 801.851.5556
http://www.clearcenter.com
http://www.clearfoundation.com
This is great to hear Joe. We’re looking forward to growing this momentum with MSPs who see the monetization opportunities in bringing, supporting, and managing high value / low cost applications for clients.
Niv@4: Keep an eye on MSPmentor today (Nov. 19). Video interview followup with Bellini coming today. Topics include IT nation in the cloud.
Michael@5: Thanks again for your time back at CompTIA Breakaway. You opened my eyes to a few things.
Jeff@6: Thanks for your time at ConnectWise Partner Summit. Looking forward to continued updates from you and Stephen Cho.
-jp
Something that has been downplayed lately is Microsoft’s agressive price drop and storage increase. $5/month per mailbox for hosted exchange and $10 for the BPOS suite (includes sharepoint, livemeeting and communicator). This also includes a 25GB per mailbox increase for aggregated storage.
Also, as a partner we just recieved 250 free BPOS licenses for internal use, which is about a $2500/month value. No cost to join the program, took less than a day to complete requirements.
The invoicing and 12%/6% still isnt great, but they are offering $500 deployment incentives and anyway do we really want to sell email accounts for a living?
LotusLive is touting a price drop for the web mail (iNotes or whatever) for $3/user/month. This isnt as interesting to me as their Connections product (previously I beta tested it as BlueHouse) which is a secure social network/project management/collaboration site that allows you to work with co-workers as well as customers/contractors.
@Michael Proper
I think everyone would do well to take note of your last comment…
Hint: Focus on scaling your “service” offerings and not reselling “stuff”.
I think the Connectwise CEO has shared this sentiment of late given their investment in hosted services before the announcement of MOS. David said something along the lines of “you gotta get paid for your what you know”
While I was prepared initially to be up in arms against MS and their restrictive low margin opportunity, the recent changes steered me away from Google Apps and also reminded me that resellers of IT stuff have a hard time making boat payments in ANY economy.