Hosted Windows Desktops: Your Next MSP Move?
The inflection point is here: As MSPs and businesses prepare for Windows 7’s debut on Oct. 22, mindSHIFT — ranked atop our annual MSPmentor 100 report — is changing the rules of the game. The company has launched a hosted desktop solution called NextDesktop. It’s a cloud/SaaS service of sorts that blends Windows, open source, security and productivity applications for a flat monthly fee. Here are the details and the implications for managed service providers.
Yes, I realize a growing number of SaaS (software as a service) companies are hosting Windows desktops and/or promoting virtualized desktops. The VAR Guy, MSPmentor’s sister site, has even speculated about 2010 being the year of virtualized desktops.
But mindSHIFT’s move is particularly significant. As one of the larger MSPs that has made regional acquisitions in recent years, mindSHIFT is considered a thought leader in the managed services market. Also, the company has plenty of experience with more traditional hosted applications such as Microsoft Exchange.
So, mindSHIFT’s decision to introduce hosted desktops potentially is an “ah hah” moment for MSPs that are still sorting out their SaaS, cloud and next-generation desktop strategies — especially as Windows 7 arrives. Plus, the NextDeskop offering shows how MSPs can differentiate their services from Microsoft’s forthcoming Office Web and growing Business Productivity Online Suite (BPOS) services.
Plus, NextDesktop is a case study in how to build a branded service.
What is NextDesktop?
Priced $39.99 per user per month, mindSHIFT’s NextDesktop is far more than hosted Microsoft Office. The offering includes secure user access to office desktops anywhere, anytime and a choice of either OpenOffice (the open source application suite) or Microsoft Office 2007.
It also includes:
- Data and applications, including Windows, running in mindSHIFT’s 24x7x365 Tier 4 data
center - Management of lag time with Internap Performance IP to decrease latency
- Instant Office feature: Web-based control panel for immediate setup of new users and
services by authorized administrative user - PDF creator and Adobe Reader
- 1 GB of disk space for each user to store documents
- Daily backup of all data
- Real-time anti-virus and anti-spyware updates from Trend Micro
- Live U.S.-based Help Desk via telephone and email
- Timely, transparent software patches and updates
- Month-to-month contract
mindSHIFT also is connecting the dots between hosted desktop applications and hosted server applications such as Exchange Server, SharePoint, Dynamics CRM and a range of email and calendaring services. Very smart.
Big Questions, Big Opportunities?
Will NextDesktop work? Will customers buy it? Is the world ready to move away from traditional Windows desktops for hosted productivity applications — including open source applications?
I don’t have the answers. At least not yet. But I do believe there is a small, growing niche for SaaS solutions like NextDesktop. mindSHIFT’s press release does a fantastic job explaining NextDesktop’s potential financial and productivity benefits to budget-conscious small businesses.
Bottom line: Assuming NextDesktop works, the service is more than a technology case study for MSPs. It’s a business and marketing case study for how to launch a branded, recurring revenue managed service that includes multiple commodity products.
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It will be interesting to see what role technology plays in the decision process of a buyer when selecting a SaaS based desktop solution. Mindshift appears to have selected a terminal server based solution vs. a virtualized desktop based solution.
It’s also interesting that they dedicated an entire page to latency. Not something the average non-tech decision maker would likely understand however a high priority for an IT decision maker.
It should be noted that the solution starts at $40/month but if you add the common options of Exchange, Microsoft Office Professional, and Blackberry your at $80/user, which is on the low side of the present range of existing desktop as a service solutions.
Will distribution through Ingram Micro be next? (ie. GroupSpark…)
Hey Nick: I will ask mindSHIFT if their system is terminal server based on virtualized. Very interesting observation by you, and I know I’m way late connecting with you. Once I’m back from SMB Nation let’s talk.
Have you seen ThinkGrid or Pointivity? they offer virtualized desktop, different from terminal server or citrix which I think is offered by Mindshift.
Ashley: Yes I’ve heard of both companies. I think mindSHIFT caught my attention so strongly because I visited their offices a few weeks ago and got a pretty in-depth briefing on their strategy.
Nick: You are correct. NextDesktop is based on the latest remote desktop services — specifically, Windows Server 2008 R2. We evaluated all technologies available for hosted and virtual desktops, and chose this one because we believe that it offers the best combination of functionality, performance and most importantly, cost, for the small and medium-sized business owner.
BTW, we’re currently working on a Private Label program for VARs, MSPs, ISPs, and Hosters who can resell the new Hosted Desktop service — under their name and brand. This private labeling enables resellers to offer this as a service from them; the mindSHIFT and NextDesktop brands are invisible to the customer.
Vicki: I’ll be in touch to discuss that private label strategy.
-jp
They say their target customers are start-ups and SMBs but…
Very small companies are happy with their laptops and inexpensive hosted apps.
Large Companies are more often concerned with the quality of the support behind the technology.
In my opinion this a solution looking for a problem – smart companies have already driven IT costs down to a very comfortable 1% – 2% of their overall costs. All this seems to do is make the technology itself a little cheaper. They also mention this is an “Alternative to Buying, Maintaining, Supporting and Upgrading PCs” …but I still need a PC to connect to their service …and that PC still requires maintenance and support. If they provided the PC as part of the service I’d find it more compelling.
What I’m hearing most from clients is help on making their technology easier to use and leveraging it within their own business. Their approach appears to be even more complicated to use than a traditional desktop.
The hosting business (known for having the slimmest of margins so for them to take their attention off the still growing MSP market surprises me. I wish them best of luck in any case. At best I think this service is a great monkey’s paw into a few companies still in the start-up stage that will eventually be full MSP clients.
I agree that MSP’s should be offering hosted desktops and applications. At some point most infrastructure will go the “the cloud” with the exception of local devices to connect. RTDS (www.myrealdata.com) has been hosting desktops and apps for 5 years with great success. The market is really now starting to “come to us” which is great. We also host LabTech (www.labtechsoft.com) Control Center for remote monitoring. The combination of these offerings provides a significant opportunity to offer a “best of breed” combination of MSP and hosting services. We also provide the 24×7 NOC support from our facility in New Delhi.
Hi James: I’d love to hear more. Feel free to send me email (joe [at] NineLivesMediaInc.com).
-jp