Parallels: A Secret Weapon for Microsoft Cloud Partners?
Within consumer markets, Parallels is perhaps best known for its Macintosh desktop virtualization platform. But touch base with hosting providers and cloud services providers (CSPs), and you’ll find Parallels Automation and Parallels Plesk Panel serving as the foundation for many SaaS systems. But here’s the truly interesting twist: Parallels could play a key role in Microsoft’s cloud strategy with large service providers — and maybe even smaller service providers over the long haul.
Why’s that? In this TalkinCloud FastChat Video, Joshua Beil, director of market strategy and research for cloud and service provider business, describes how Parallels is working with Microsoft on a so-called service provider syndication model.
In theory, very large service providers will be able to leverage Microsoft’s hosted infrastructure (Business Productivity Online Suite and its forthcoming successor, Office 365). Perhaps more importantly, the large service providers will be able to handle end-customer billing, assuming they add some value to the Microsoft SaaS suite.
Remember the Billing Debate?
Re-read that last paragraph because it’s extremely important. Over the past year or so, some small Microsoft channel partners have complained about Microsoft’s SaaS strategy to directly bill end-customers. But Beil is describing how Parallels will potentially help Microsoft’s largest BPOS and Office 365 partners to manage SaaS customer billing on their own.
The key takeaway: Beil is not suggesting Microsoft plans to let all partners manage end-customer SaaS billing. But he describes a near-term future where some larger Microsoft partners will do exactly that. And it begs the question: Will Microsoft ever extend that BPOS and Office 365 customer billing capability to smaller channel partners?
TalkinCloud’s educated guess: Yes, but our opinion is purely based on the fact that Google Apps already allows partners to bill end-customers. So we expect Microsoft will need to match that capability — perhaps in late 2011 or early 2012, after Office 365 has had a few months to prove itself in the market. (Best guess: Office 365 will launch sometime in mid-2011).
The Parallels Story
Meanwhile, Parallels itself appears to be on the roll. TalkinCloud has heard from dozens of hosting partners and service providers that leverage Parallels within a broader SaaS and cloud strategy. Hundreds of those partners are expected to attend Parallels Summit 2011 (Feb. 22-24, Orlando).
Even distributors are taking a close look at Parallels for SaaS and cloud channel projects. In Europe, Tech Data Belgium leverages Parallels for an SMB channel partner SaaS platform. (TalkinCloud will publish more details about the Parallels-Tech Data Belgium relationship on Dec. 16). And there are signs Ingram Micro North America has been taking a look at Parallels off and on for about a year, though Beil declines to discuss such speculation.
On the executive front, Parallels in mid-2010 hired two key Microsoft veterans — hosting expert John Zanni and small business guru Birger Steen — to help take Parallels to the next level. Steen now occupies the Parallels president chair, which could indicate that Parallels plans to strengthen its small business strategy.
Still, it’s hard to pinpoint Parallels’ overall business momentum. The company is privately held and appears to work mostly with larger service providers. We’ll be watching to see if smaller MSPs leverage Parallels’ various automation platforms.
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