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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TAGS: Financing
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