Rise of the Managed Services Distributor

Joe Panettieri, Former Editorial Director

September 24, 2008

2 Min Read
Rise of the Managed Services Distributor

During the ConnectWise Partner Summit last week, CEO Arnie Bellini described how cloud computing would converge with managed services. Now, a research report from Techaisle also describes this convergence — and they coin the term Managed Services Distributor.

So, what exactly is a managed services distributor (MSD)? And how will MSDs impact managed service providers? Here are some thoughts from Techaisle, and MSPmentor’s perspectives.

According to a Techaisle research brief:

“Broadband providers and traditional web and email hosting providers have new opportunity to increase their average selling prices, specialized SaaS providers are evolving into XaaS providers adding management as a value proposition.

Over time, customers will look to a channel that can aggregate multiple Cloud and SaaS services and provide integration and support services and a single SLA.”

MSPmentor agrees fully with the statement above. We’ve been evangelizing the need for MSPs to plug into multiple cloud services, and then present those services as a suite of options to their small business customers.

Techaisle goes on to say:

“There is an opportunity for the channel therefore to transform their current business model to adapt to this new environment, blending local onsite and remote support models. At the same time direct marketers, especially in the mature markets are also experimenting with entering the market looking for services margins.

Until the messaging is crisp the market will remain confused giving rise to a new set of Distributors namely, Managed Services Distributors (MSDs) who provide a standard platform and service models to VARs, retail and other resellers who in turn resell to their customers within driving distance.”

Welcome to the managed services party, MSDs. You sound a bit like Master Managed Service Providers (Master MSPs). It’s unclear to me whether MSDs and Master MSPs are one in the same. But I’m sure readers will debate me on that.

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About the Author(s)

Joe Panettieri

Former Editorial Director, Nine Lives Media, a division of Penton Media

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