Should MSPs Build Out Their Own Cloud Infrastructure?
Here’s an interesting piece of news that deserves bigger-picture consideration: ScaleMatrix, an upstart managed service provider (MSP), has major cloud ambitions. ScaleMatrix plans to use CA Technologies‘ 3Tera AppLogic software to offer a range of services such as application hosting, Infrastructure as a Service (IaaS), Platform as a Service (PaaS) and Virtual Private Data Centers (VPDCs). So why should MSPs care?
On the one hand: I think it’s risky for an MSP to build IaaS and PaaS platforms from the ground up, rather than leveraging public clouds. Seems to me like it’s going to get really difficult — and cost prohibitive — for smaller MSPs to compete over the long-haul against Amazon Web Services, Rackspace and other big public cloud providers. That’s why some MSPs are checking in with emerging partners like Channel Cloud, rather than building out their own infrastructures.
Disruptions Welcome
On the other hand: I root for entrepreneurs. And it’s interesting to see ScaleMatrix make such a major commitment to cloud and managed services, with an assist from CA. According to a prepared statement:
“What sets ScaleMatrix apart from other cloud service providers is its ability to control the entire process on behalf of its customers. ScaleMatrix architects, deploys, and manages the entire solution in any one of its 12 data centers across the United States or in a customer’s own private data center.”
Okay, I’m intrigued. We’ll be watching ScaleMatrix. But we’ll also be watching CA Technologies, to see if the company connects the dots between its growing portfolio of MSP- and cloud-oriented software — including 3Tera and Nimsoft.
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Competing in the IaaS market certainly seems like it will be difficult, especially as margins drop to zero. The trick for MSPs is to instead find a way to provide some differentiated offerings and a way to hold onto margin. It’s certainly what we’re trying to help folks with through 3Tera and Nimsoft. My CA colleague Matt Richards posted a bit more color on this topic today: http://bit.ly/ha5Bwd
For MSP’s trying to decide where to go on this issue – Thinkgrid are a true channel-only cloud enablement platform for MSP’s, providing the back-office automation and cloud services required to create a profitable cloud business line. We’re located in US, EMEA and Australisia, so if you wish to discuss our partnership program please get in touch at scott.holmes@thinkgrid.com
Jay@1: Thanks for the link.
Scott@2: Please make sure ThinkGrid is keeping our blog team informed, both here and on our sister sites (www.TheVARGuy.com and http://www.TalkinCloud.com).
Thanks,
-jp
Joe Panettieri
Editorial Director, Nine Lives Media Inc.
joe [at] NineLivesMediaInc [dot] com