https://www.channelfutures.com/wp-content/themes/channelfutures_child/assets/images/logo/footer-new-logo.png
  • Home
  • Technologies
    • Back
    • SDN/SD-WAN
    • Cloud
    • RMM/PSA
    • Security
    • Telephony/UC/Collaboration
    • Cable
    • Mobility & Wireless
    • Fiber/Ethernet
    • Data Centers
    • Backup & Disaster Recovery
    • IoT
    • Desktop
    • Artificial Intelligence
    • Analytics
  • Strategy
    • Back
    • Mergers and Acquisitions
    • Channel Research
    • Business Models
    • Distribution
    • Technology Solutions Brokerages
    • Sales & Marketing
    • Best Practices
    • Vertical Markets
    • Regulation & Compliance
  • MSP 501
    • Back
    • 2022 MSP 501 Rankings
    • 2022 NextGen 101 Rankings
  • Intelligence
    • Back
    • Galleries
    • Podcasts
    • From the Industry
    • Reports/Digital Issues
    • Webinars
    • White Papers
  • Channel Futures TV
  • EMEA
  • Channel Chatter
    • Back
    • People on the Move
    • New/Changing Channel Programs
    • New Products & Services
    • Industry Honors
  • Resources
    • Back
    • Advisory Boards
    • Industry Organizations
    • Our Sponsors
    • Advertise
    • 2023 Editorial Calendar
  • Awards
    • Back
    • 2022 MSP 501
    • Channel Influencers
    • Circle of Excellence
    • DE&I 101
    • Technology Advisor 101 (TA 101)
  • Events
    • Back
    • 2023 Call for Speakers
    • CP Conference & Expo
    • MSP Summit
    • Channel Partners Europe
    • Channel Partners Event Coverage
    • Webinars
    • Industry Events
  • About Us
  • DE&I
Channel Futures
  • NEWSLETTER
  • Home
  • Technologies
    • Back
    • SDN/SD-WAN
    • Cloud
    • RMM/PSA
    • Security
    • Telephony/UC/Collaboration
    • Cable
    • Mobility & Wireless
    • Fiber/Ethernet
    • Data Centers
    • Backup & Disaster Recovery
    • IoT
    • Desktop
    • Artificial Intelligence
    • Analytics
  • Strategy
    • Back
    • Mergers and Acquisitions
    • Channel Research
    • Business Models
    • Distribution
    • Technology Solutions Brokerages
    • Sales & Marketing
    • Best Practices
    • Vertical Markets
    • Regulation & Compliance
  • MSP 501
    • Back
    • 2022 MSP 501 Rankings
    • 2022 NextGen 101 Rankings
  • Intelligence
    • Back
    • Galleries
    • Podcasts
    • From the Industry
    • Reports/Digital Issues
    • Webinars
    • White Papers
  • Channel Futures TV
  • EMEA
  • Channel Chatter
    • Back
    • People on the Move
    • New/Changing Channel Programs
    • New Products & Services
    • Industry Honors
  • Resources
    • Back
    • Advisory Boards
    • Industry Organizations
    • Our Sponsors
    • Advertise
    • 2023 Editorial Calendar
  • Awards
    • Back
    • 2022 MSP 501
    • Channel Influencers
    • Circle of Excellence
    • DE&I 101
    • Technology Advisor 101 (TA 101)
  • Events
    • Back
    • 2023 Call for Speakers
    • CP Conference & Expo
    • MSP Summit
    • Channel Partners Europe
    • Channel Partners Event Coverage
    • Webinars
    • Industry Events
  • About Us
  • DE&I
    • Newsletter
  • REGISTER
  • MSPs
  • VARs / SIs
  • Agents
  • Cloud Service Providers
  • Channel Partners Events
 Channel Futures

Sales & Marketing


Software vs. Services: Is the Line Disappearing?

  • Written by Joe Panettieri 1
  • May 25, 2010

While reading about IBM’s software strategy today in The New York Times, I noticed the following line: “The line between software and services is increasingly blurred, and IBM has many thousands of developers these days in its big services group.” I began to wonder: Is the situation similar within managed services providers? Should it be?

I realize thousands of VARs continue to work on traditional network, storage and application projects. And thousands of MSPs successfully generate recurring revenue based on pro-active customer services. But from where I sit, the next waves in IT seem to require deeper application expertise.

Consider the rise of the Google Apps Marketplace. As a Google Apps reseller, MSPs and VARs can only make about $10 per user per year. But if you develop some application-specific expertise, tied to the Google Apps marketplace, you can likely generate healthy software project revenue. And you may even develop some intellectual property that you can market on your own.

In a way we’re going back to the future. In the 1990s, I suspect the most profitable Microsoft partners had some deep application expertise tied to Exchange Server and/or SQL Server. Fast forward to the present day, and channel partners are shifting their application expertise from traditional servers to cloud and SaaS integration expertise. Such is the case at JoomConnect and MSPintegrations, two separate business efforts from MSPs that are now writing managed services middleware.

When I think of MSPmentor’s own business, we aren’t really interested in paying someone to proactively monitor our PCs. But we still pay a premium to integrators and consultants that can build online applications that link together multiple cloud systems and open source code.

Bottom line: People will pay a premium for innovation that delivers a competitive edge. And I suspect the most profitable MSPs of 2010 and beyond will have some specialized software or application customization expertise in their toolkit.

Sign up for MSPmentor’s weekly Enewsletter, Webcasts and Resource Center. And follow us via RSS; Facebook; Identi.ca; and Twitter. Plus, check out more MSP voices at www.MSPtweet.com.


Tags: Agents Cloud Service Providers MSPs VARs/SIs Best Practices Sales & Marketing

Most Recent


  • Update
    Acronis Updates CyberFit Partner Program Amid Rapid Service Provider Growth
    The updates include several programs and promotions for all types of partners.
  • People
    Innovative Business, Partners Clean up in Cox, Rapidscale Awards
    Innovative Business Solutions won three different awards, including won for growth in cloud sales.
  • m&a blocks
    Bluewave Buys SinglePoint from Soterra Capital, Bulks Up Louisville Footprint
    Soterra Capital, which bought SinglePoint in 2016, is keeping equity in the combined company.
  • Word new on fire
    Skyhigh Security Partners Get New Global Partner Program
    This is Skyhigh Security's first partner program since the company's launch last March.

Leave a comment Cancel reply

-or-

Log in with your Channel Futures account

Alternatively, post a comment by completing the form below:

Your email address will not be published. Required fields are marked *

Related Content

  • CwCJ Feature Size
    Coffee with Craig and James Episode No. 96: Tech Data's Solazzo, David Nour
  • Job cuts
    Nutanix Employees Lose Jobs as Part of Global Workforce Reduction
  • Threats
    Cybersecurity and Threat Protection: MSSPs, Get Your Advice Here
  • Nation-State Cyberattack
    U.S., Companies 'Absolutely Not' Prepared for Nation-State Cyberattacks

Upcoming Events

View all

Channel Partners Conference & Expo

May 1, 2023 - May 4, 2023

Channel Partners Europe

June 13, 2023 - June 14, 2023

Channel Futures Leadership Summit

October 30, 2023 - November 2, 2023

Galleries

View all

Abundant IoT, Advisors Tackle the eIoT Opportunity

February 6, 2023

Top 20 Stories in January: Avaya, Microsoft, IBM, AWS, Datto, More Layoffs

February 6, 2023

Cloud Computing News: Broadcom-VMware, Google-Anthropic, Red Hat, More

February 6, 2023

Industry Perspectives

View all

The Software Patching Problem – Solved

February 3, 2023

How to Break Through the Growth Ceiling

February 1, 2023

5 Things to Look for in a UC Partner

January 31, 2023

Webinars

View all

Next-Generation MSP Platform: The Building Blocks for Your Business

February 15, 2023

The SMB Opportunity: How to Sell and Service the SMB Market, Capture Customers and Expand Your Business

February 23, 2023

How To Boost Your Business With White-Label UCaaS

February 28, 2023

White Papers

View all

6 UCaaS Reseller Challenges and How Real World Businesses Solved Them

February 1, 2023

Frost Radar: North American UCaaS Market, 2022

February 1, 2023

The Complete Guide to White-Label UCaaS for Reseller Success

February 1, 2023

Channel Futures TV

View all

Coffee with Craig and James Episode 117: Cato Networks, Video Killed the Podcast Stars

Retired Astronaut Capt. Scott Kelly Previews His CP Expo Keynote

December 21, 2022

Fusion Connect Eyes Future with Intrado UC, Managed Network Customers

September 23, 2022

RingCentral Focused on Hybrid Work, Microsoft Teams, Other Integrations

September 23, 2022

Twitter

ChannelFutures

.@AbundantIoT is putting more focus on the enterprise, CEO Vince Bradley tells Channel Futures.… twitter.com/i/web/status/1…

February 7, 2023
ChannelFutures

January's #topstories in channel include @Avaya @GTTComm @Broadcom @awscloud @citrix @Salesforce @Datto… twitter.com/i/web/status/1…

February 6, 2023
ChannelFutures

.@Acronis announces #CyberFit partner program updates. dlvr.it/Sj2FZQ https://t.co/z7lRdIRo9R

February 6, 2023
ChannelFutures

More #Avaya trouble: Lawsuit against company by bondholders claims "massive fraud." dlvr.it/Sj2DZT https://t.co/4Q1E7JAXXf

February 6, 2023
ChannelFutures

.@DellTech adds new #APEX delivery options for #delltechnologies partners. dlvr.it/Sj29c6 https://t.co/3qEEYpnOBX

February 6, 2023
ChannelFutures

There are some familiar names in @coxbusiness and @Rapid_Scales recent partner awards. dlvr.it/Sj1zm6 https://t.co/0BuGwBrnvM

February 6, 2023
ChannelFutures

RT @Channel_Expo: We know your mind is on the #BigGame this week, but don't take your eye off the ball! #EarlyBird rates for #CPExpo & #MSP…

February 6, 2023
ChannelFutures

Learn about @bluewavetg's latest deal. dlvr.it/Sj1wrV https://t.co/NCdmJ4OFkf

February 6, 2023

MSP 501

The industry's largest and most comprehensive partner awards program.

Newsletters and Updates

Sign up for The Channel Report, Channel Futures Update, MSP 501 Newsletter and more.

Live Channel Events

Get the latest information on the next industry-leading Channel Partners event.

Galleries

Educational slide shows and images from live events.

Media Kit And Advertising

Want to reach our audience? Access our media kit.

DISCOVER MORE FROM INFORMA TECH

  • Channel Partners Events
  • Telecoms.com
  • MSP 501
  • Black Hat
  • IoT World Today
  • Omdia

WORKING WITH US

  • Contact
  • About Us
  • Advertise
  • Newsletter

FOLLOW Channel Futures ON SOCIAL

  • Privacy
  • CCPA: “Do Not Sell My Data”
  • Cookie Policy
  • Terms
Copyright © 2023 Informa PLC. Informa PLC is registered in England and Wales with company number 8860726 whose registered and Head office is 5 Howick Place, London, SW1P 1WG.
This website uses cookies, including third party ones, to allow for analysis of how people use our website in order to improve your experience and our services. By continuing to use our website, you agree to the use of such cookies. Click here for more information on our Cookie Policy and Privacy Policy.
X