MSPs Successfully Target Midmarket Customers
When managed service providers say they target midsize customers, the statement can mean many things. In one scenario, the MSPs remotely manage midsize corporate networks. In another scenario, the MSPs resell remote monitoring and management software into midmarket IT departments, and therefore develop new business relationships with midmarket customers. N-able’s channel partners seem to be gaining momentum in that latter scenario. Here’s some analysis.
Consider the situation at Precision IT, a managed service provider in New York. David D’Arcy, founder and president of the company, says Precision IT has successfully resold N-able’s software into three midsize customer settings, with two more major deals in the pipeline. Precision IT’s current midmarket deals range from 600 to 3500 seats.
Precision IT isn’t alone. N-able says the company’s Midmarket Partner Program, launched in May 2009, has attracted nearly 120 channel partners. As part of that announcement, N-able vowed to avoid direct sales and funnel all leads to its midmarket partners. “We’re helping our channel partners take the cost out of winning business in the midmarket,” asserts Frank Colletti, N-able’s director of sales.
In a typical scenario, N-able routes a midmarket lead to the most appropriate channel partner — using email and phone-call follow-ups. Then, N-able assists the channel partner with the sales process, if needed. By roughly 2Q 2010, N-able will further automate the midmarket lead distribution process, using Salesforce.com.
In the meantime, MSPs like Precision IT are building closer working relationships with midmarket IT directors and internal corporate IT departments. This is part of a wider trend in the managed services market. A few prime examples:
- Autotask‘s Taskfire tool allows MSPs and corporate IT departments to coodinate service tickets and daily tasks. True believers include Waka Digital Media Corp., an MSP working with corporate IT departments in New England.
- Ingram Micro Seismic recently partnered with Nimsoft; the deal should help Ingram’s VARs promote Nimsoft’s management tools into midsize and large enterprises.
- Kaseya is both cooperating and competing with VARs in the midmarket. The company is gradually launching a next-generation managed services framework and also this October plans to launch a cloud platform for MSPs.
We’ll be careful not to hype the midmarket as a the next huge opportunity for MSPs. But companies like Precision IT offer proof that selling RMM software into corporate IT departments can generate incremental revenue plus new business relationships.