Vertical Managed Services: Cabinet NG Inks Pact With Legal Partner

Cabinet NG, a software vendor pursuing document management and workflow management, is beginning to see a vertical focus among its VARs and managed services providers (MSPs). The legal market provides one example. The company recently reported a VAR agreement with Summit Global Services, which targets litigation support and e-discovery. Summit, a solution provider based in Richmond, Va., also pursues opportunities in the medical, insurance and financial sectors. Cabinet NG also partners with Maya Assurance in the insurance industry.

For the most part, Cabinet NG’s VARs have been SMB generalists and don’t have a specific vertical, noted James True, vice president of business development at the Huntsville, Ala. company. But as Cabinet NG recruits more VARs, the company is “starting to see how some are becoming more specialized in a particular vertical,” he added.

The vertical examples Cabinet NG cited are part of a broader trend. MSPs with horizontal services are looking for ways to offer those services in particular industry segments.

A vertical path providers some differentiation, but also positions the MSP to take on potentially larger projects. For example, a service provider who gains vertical market experience with small physicians practices may move up the health chain to serve community hospitals and integrated health systems.

Legal Vertical

Summit gained its vertical orientation via acquisition. The company formed through the merger of Summit Logix -- an IT services firm -- and Global Litigation Support Services. Summit develops workflow and document management solutions for its clients. It also provides and manages the supporting IT infrastructure at the customer’s location, according to the company’s Web site.

Summit’s VAR pact lets the company offer Cabinet NG’s CNG-SAFE and CNG-ONLINE as part of its portfolio. CNG-SAFE brings together document management software with contact management and workflow. CNG-ONLINE is the hosted version of CNG-SAFE.

The legal sector has become an important vertical for MSPs and software providers, as legal departments and law firms look to technology to ease the e-discovery workload.

True said his company is seeing growth in the legal vertical. Three years ago, that segment fell into the “other” category in terms of revenue contribution, he said. Today, the vertical contributes nearly 5 percent to the company’s revenue.

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