Is DaaS the new RMM for MSPs?
Managed service providers (MSPs) wouldn’t exist without remote monitoring and management (RMM) companies. For over a decade RMM providers have empowered MSPs with software that allows them to monitor and maintain on-premises environments for their clients. Between software agents on servers and end-user devices, the various RMM companies have facilitated billions of dollars in billed revenue for the tens of thousands of MSPs around the world. There is no disputing that RMM has been the essential component of the rise and success of MSPs.
But where is this industry going? With the proliferation of hosted applications (“moving to the cloud”) the need for MSPs to monitor and maintain on-premises servers is declining every day. There are still the end-user devices to monitor, right? Yes, certainly, but with the rise of Macs, tablets, Chromebooks and thin clients in the workplace, the universe of end-user devices MSPs can monitor/patch/update for their clients is also shrinking.
Gartner forecasts that 7.3 million Chromebooks will ship in 2015, up 27 percent from the previous year. The combination of more SaaS/cloud-based applications and inexpensive, lower maintenance end-user devices could greatly reduce the dependency MSPs have on the RMM providers.
Controlling third-party apps
Many MSPs are starting to understand that to be successful in the future, they must control the third-party business applications their clients use. The best way for MSPs to control their clients’ applications is with Desktop as a Service (DaaS). DaaS allows MSPs to offer their clients the back-end servers to run their business, access to their data, access to their applications with back-up and disaster recovery in a pay-as-you-go pricing model. Bundle in hosted Exchange and Microsoft Office and the MSP has a package most SMBs find compelling.
Does RMM have a future?
RMM companies will continue to exist, but that role won’t be as nearly prominent in the MSP community as it’s been the last decade. RMM companies will be the ones monitoring the servers in the cloud for the DaaS/IaaS companies. In fact, an RMM company just inked a deal with a leading DaaS provider to monitor the thousands of virtual machines they have in data centers around the country. And where there is an end-user device that can be monitored and maintained with an RMM agent, it should be. I am a big believer that every MSP offering a DaaS solution should bundle in end-user support and put an RMM agent on every Windows device in their client portfolio. This is the best way to mitigate exposure while providing an unlimited help desk package.
In the end, the smartest RMM companies will thrive because they will still be monitoring the infrastructure that SMBs need to run their businesses, but that infrastructure will be owned/operated by DaaS/IaaS providers, not the SMB clients or MSPs of the past or present. And in the future the DaaS/IaaS companies will become the new essential partner for the successful and growing MSPs.
Contact Jimlippie@claritychannel.com or follow him @jimlippie
So true. The RMM vendor needs
So true. The RMM vendor needs to keeping up with the times and ensuring that they can monitor cloud infrastructure as well as on-prem infrastructure. Monitoring things like Office 365 and being able to do synthetic transactions to ensure the response time and the link between the physical and the virtual as well as monitoring each and every piece of hardware they are using to access the cloud. Doesn’t matter how much goes to the cloud, you still have to have something to access the cloud with, and that device needs to be running properly for the whole thing to work.
I think it’s irrelevant.
I think it’s irrelevant. DaaS is too expensive and with more and more applications going to a SaaS model, the desktop will become useless as both applications and their data will be accessible from a browser.
Hello Anonymous – thanks for
Hello Anonymous – thanks for reading and the comment. I am glad you brought up the price of DaaS, because it’s an often misunderstood topic. First, I agree more and more applications are moving to a SaaS, no secret there. But that doesn’t mean that the MSPs can’t be the ones delivering the applications to their clients via a private labeled DaaS solution. All of the best DaaS solutions offer multiple connection models, one of which is a web browser. DaaS allows the MSP to control the delivery of all the client’s applications, which in the end is more economical for the end client. For example, say an SMB uses Office 365 $10/user/month, Salesforce $65/user/month and Quickbooks online $27/user/month. All SaaS based applications and gives the SMB everything they need (shared storage, productivity software,CRM, financial software) outside of an industry specific application. The total cost to the SMB is $102/user person month. The same functionality with leading DaaS platform would be $70.30/user/month. The DaaS solution would include all the back-end servers, access to shared storage/file server (10GB/user), unlimited third party applications, back up and disaster recovery and Microsoft Office via SPLA. In this instance the client leverages their existing license key codes for whatever on premise applications they already use (Quickbooks, CRM (obviously not SF.com, but Goldmine, ACT etc.), and specific 3rd party business applications). In addition, I would expect the cost of DaaS to go even lower over time as IaaS becomes cheaper and cheaper. In the end, it’s vitally MSPs to do everything they can to control/deliver the 3rd party business applications for their clients, otherwise they’re just left with end user support on lower end devices and consulting services.
I tend to agree with this
I tend to agree with this article. Although at the moment DaaS can be cost-prohibitive for the SMB market, I’m sure that will change as the overall cloud “landscape” grows more and more competitive. Sure, some clients will always need on-premise RMM, but their applications may all be cloud-based at a certain point, either as a SaaS application or on a cloud-hosted server VM.
I would also argue that a desktop experience, for most employees, is paramount to their productivity. I don’t see BYOD and disparate applications scattered all over the infrastructure gaining much traction with business owners of SMBs right now. Too much training and too little oversight. Give an employee a desktop (either on-premise of DaaS) and they can be productive almost from day one.
“I think it’s irrelevant.
“I think it’s irrelevant. DaaS is too expensive and with more and more applications going to a SaaS model, the desktop will become useless as both applications and their data will be accessible from a browser.”
Totally Agree.
I agree with this article,
I agree with this article, RMM and DaaS will be synonymous with the Managed Service Provider in the coming year. More and more MSPs are adopting a cloud first strategy whereby they are protecting the local device, standardizing on a hosted desktop or application delivery platform and bundling in help desk.
As stated in the article, whether you are rolling your own DaaS solution or you are consuming it from DaaS service provider the RMM tools are just moving from on premises to the IaaS or public cloud provider’s servers.
I would agree, I have seen
I would agree, I have seen many MSP’s create their own cloud solution to deliver DaaS and hosted applications. This creates efficiencies for the MSP and, with some volume, brings the end user cost low enough for real adoption. Especially true when you consider the ability to make any application SaaS, by publishing them, on your own cloud. Now the client doesn’t have fragmented infrastructure/applications and the MSP keeps most of the revenue. RMM vendors really need to keep an eye on this changing market to effectively pivot their offering and keep up as the traditional MSP evolves.
Good article. The need for
Good article. The need for RMM companies to adapt services for the growing demand in DaaS/IaaS is crucial. Securing, monitoring, maintaining, supporting and reporting on devices will still be critical for an MSP to manage. Multi-layer security will be one of the biggest areas that RMM companies will need to improve. The threat landscape is evolving rapidly and managing those vulnerabilities is will only become more important.
Great article,
For the past
Great article,
For the past 2.5 years we have seen a steady stream of clients that are lowering their foot print in-terms of infrastructure and moving to a DaaS platform. By doing this, it allows them to be more flexible for the business and their employees. One important point; any clients that we talk to these days that are looking to replace servers and upgrade them is an opportunity for us to educate them on a DaaS platform.
This has not necessarily diminished the need for us to use an RMM but we have definitely changed the way that we sell our solution. In my opinion MSP’s that do not have a DaaS in place should seriously consider one. From an operations standpoint we have seen more than half the amount of support tickets with our DaaS solution vs. our traditional environments. One other point; although DaaS platforms do add more cost at first glance we have actually seen our average per/person/node price go up by 30% using DaaS. I’ll take that any day.
Great article,
For the past
Great article,
For the past 2.5 years we have seen a steady stream of clients that are lowering their foot print in-terms of infrastructure and moving to a DaaS platform. By doing this, it allows them to be more flexible for the business and their employees. One important point; any clients that we talk to these days that are looking to replace servers and upgrade them is an opportunity for us to educate them on a DaaS platform.
This has not necessarily diminished the need for us to use an RMM but we have definitely changed the way that we sell our solution. In my opinion MSP’s that do not have a DaaS in place should seriously consider one. From an operations standpoint we have seen more than half the amount of support tickets with our DaaS solution vs. our traditional environments. One other point; although DaaS platforms do add more cost at first glance we have actually seen our average per/person/node price go up by 30% using DaaS. I’ll take that any day.
Hi JShirdon – Thank you
Hi JShirdon – Thank you reading and for the comment. Your experience is certainly consistent with many of the other MSPs my company works with around the country. I am very happy you mentioned the reduction in support tickets with DaaS, because the standardization thru cloud desktops is a huge part to scaling and driving higher profits!